We have 4 eco friendly holiday lodges which we have available for letting 52 weeks /year our intention has always been and is still, for it to be a commercial business with a view to profit. We are still making losses 5 years into trading. The occupancy is growing year on year and there is a substantial amount of repeat business. The occupancy is running at just less than 50% (26w). In all our planning marketing research and local statistics indicated that occupancy should be 32w. We are not there yet and so have had to subsidise the business. In addition we both have full time (although not very well paid jobs) and run the FHL business around these and at the weekends.
My concerns for the future are not how long the properties are available for letting ( as that is the business) but how long they are actually let which is so dependant on the state of the economy, market ,weather etc we are in a rural location and had minimal occupancy between Dec 09 and May 10 despite having central heating etc.
My other concern would be the treatment of losses I have been able to use these against my other income.
Within 4 years we expect to be in profit and hope to be able to offer employment for others and even expand providing jobs and facilities in the rural areas. We will struggle if we are unable to offset these losses against our other income. Losses can arise at any time so I think the losses should always be available for offset against other income.