If investors can't make some money from renting out holiday homes over these few months they never will. It is a rapidly increasing market thanks in part to the various homes being built with taxbreaks attached. Also, smaller investors have been shoring up the equity in their main homes by purchasing a holiday home. They might use it themselves and rent it out to cover expenses. But the holiday home rental season is short and increasing competition means it is harder to let out properties.

The tourism industry has been booming. Overseas visitors to Ireland grew by 11 per cent last year to 5.5 million and Bord Failte estimates that from the total number of visitors, 17 per cent opted to stay in rented accommodation. One quarter of these came from mainland Europe and 10 per cent were from Britain.

John Browne of Bord Failte says this translates as 13,000 bed nights in 4,435 self-catering establishments - and we're not including caravanning and camping.

There has been an big expansion of the self-catering market in recent years as a result of the designated schemes, according to Con O'Conaill, manager of Cork Regional Tourism, which is responsible for producing Bord Failte's self-catering brochure.

"Youghal, Clonakilty and Cork city in particular have witnessed huge developments under various tax schemes. Growth has been up to 100 per cent in terms of the properties available to rent and growth in tourism can't match this," he says. In other words, you must try harder to get clients.

The self-catering market is a wide one. Accommodation can range from thatched cottages in remote areas, to modern bungalows, castles and town apartments, which are holding their own in the market place.

"There's a market for everything. Facilities and restaurants in the towns suit a lot of people who don't have cars and come by train," says Con O'Conaill.

Standards have risen. In order to qualify for various tax breaks, owners must register with Bord Failte and a strict code of approval with a star rating system exists. "Within the past couple of years, standards have risen but we warn owners not to price themselves out of the market," he says.

The self-catering guide, which cost £5, includes over 3,000 entries. Access to the guide is through regional tourism offices and Shannon Development. It costs £210 to be in the brochure for the first year and renewals cost £200.

Tourists can either book directly with the owner of the property, or through Bord Failte, who take a 10 per cent booking fee. But owners must take responsibility for attracting clients in a rapidly expanding market and Bord Failte does not manage the houses or hand out the key to visitors.

"We're not there to fill the houses - we provide an approval service and people should not depend on the brochure alone but carry out their own marketing," says Con O'Conaill.

Prices vary with the region. A four-bedroom two-star cottage sleeping nine people in Lanesboro, Co Longford, overlooking Lough Ree, rents out at £170 a week in July and August. However, a similar house in Kinvara costs £350 in the high season. In Castletownshend, Co Cork, a four-bed, two-star cottage rents out for £380 a week in July/August.

Apartments do well. Three star apartments in Bundoran, Marine Court Holiday apartments, rent out in July and August for £375 a month. In Westport, Co Mayo, town apartments at the four-star Harbour Mill cost from £450 in July/ August for a two-bed apartment sleeping four. Four-star Atlantic Coast Holiday homes in Salthill, Galway, cost £400 in July/August while a four-star apartment at The Mill House, in Tullamore, Co Offaly, rents out for £330 July/August.

The season is short. Investors can only charge so much in the high season. The last two weeks of July and first two weeks of August are heavily booked out but there is general availability at other times.

Properties can also be rented out at Christmas and Easter and for long weekends but it is a case of marketing the property to ensure maximum coverage.

Looking after a property from a distance is one of the headaches for the holiday home owner intent on renting out. Many pay someone locally to look after a property, who will be available to deal with intermittent problems and arrange for cleaning and general maintenance.

Many of the schemes in designated areas employ a management company to look after the site all year round and provide a letting service and look after the cleaning and turnover of clients.

Mary Power set up Self-Catering Ireland in Rosslare and looks after schemes and high quality properties, mainly in the south-east.

"We provide different levels of service from looking after sites all year round such as landscaping. Depending on the location, the management fee would be about £350 to £500." The company has a website and registers over 200 hits a day, mainly from the international market. There is a letting fee of between 15 and 20 per cent and a changeover fee of about £40 to £50. She says investors stand to make 53 per cent of the gross income from their property.

Among the sites which Mary Power manages are Riverchapel and Forest Park, in Courtown, and Southfields in Rosslare.

She says some of the sites are quite heavily booked this year but there is availability. "The rates for a three-bed in the high season, sleeping five or six, rents from about £420 to £500."

Mary Power only handles properties of three star and over. Clogheen Strand, in Clonakilty, is renting at £600 a week, but sleeps 10 people.

"People are building bigger and better," she says. "With a good high standard, there is never a problem selling holidays."

Indeed, standards are so high that castles renting well into the thousands are renting well, particularly in the American market. Lismore Castle, for instance, is on the rental market for £6,650 a week, to accommodate 12 to 16 people, with a cook and butler on hand."

She advises investors to be conscious of looking after clients with an eye to the repeat business. "I cannot emphasise enough the value of this market," she says. "For investors, it can take up to three years to build up a site."

Holiday home owners qualify for some tax relief. Rents are fully chargeable to income tax and there is no deduction for interest. Deductions can be claimed for management expenses such as cleaning, repairs and maintenance and anything of a capital nature like fixtures, fittings, carpets and furniture.

Some properties in the designated resort areas qualify for Section 48 relief which provides allowances against all income, including PAYE.

Other homes qualify for Section 23 tax incentives on all rental income within the State.

David Lawlor, of Hooke and MacDonald, has been selling homes in designated resort areas and says they have attracted all age groups. Younger people are buying them for a foothold in the market when priced out of the city markets, while older people see them as an investment and a possibility of using them as a retirement property.

"They provide very good tax relief as well as a rent flow and they can be used for personal reasons in the off season. Then, at the end of 11 years, they will have their own holiday home."

He dismisses fears of an over-supply of property to rent out in the holiday. "With schemes due to run out at the end of the year, these sort of units will be in short supply although the numbers of tourists will continue to increase. Once the building stops there will be increased demand for them. The homes rent out for between £350 and £500 a year. "