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The areas of holiday home management that you need to consider before renting

Hot air balloons flying over the Botan Canyon in TURKEY

Revenue/Income from the holiday let

This is a hard question to answer since no two households are the same.

Some holiday owners operate their property purely for business reasons, while others want to use it as a second home and a place for the family to stay. Our first suggestion is aimed at maximizing revenue.

To begin, figure out what you want to achieve in terms of revenue potential. For example, we’ve always worked under the assumption that a holiday let might bring in £15,000-£20,000 per double bedroom per year.

Please note that we operate in the Cotswolds, so our most recent expertise is in this region. The revenue potential of your business will be determined by a variety of factors such as the precise location, the structure itself, any distinctive features, and the interiors (and more of that later), but let’s begin with pure income.

So, based on the calculations above, let’s assume a 3-bedroom property that might generate £45,000 to £60,000 per year. We’d start by asking:

  1. Are there any limitations regarding revenue?
  2. Is it possible to add another bedroom to the property through planning?
  3. Is it possible to convert a basement/downstairs space into a second bedroom?

It can raise your total income by £15,000 to £20,000 simply by doing so. Remember, in an ideal world, each bedroom should have its own bathroom; the worst-case scenario is one bathroom per two bedrooms (Visit England star rating is based on one bathroom per two bedrooms).

You may want to consider these points in light of the fact that VAT will be levied at £85,000 for properties with 5+ bedrooms in plus packaging. Because you’re looking into selling a home, you should also factor in the expected tax burden.

Look at how you’ll run it (operational strategy, next point), as well as how much it will cost you, and then build a business plan and potential earnings after you’ve determined how much money you’ll make.

Operational Strategy and Cost

You have two primary alternatives:

A) Manage it yourself.

B) Employ an agent.

If you’re not sure how long you’ll be gone, keep in mind that this is a big commitment! If you choose the “manage it yourself” option, be aware that managing a holiday let necessitates a significant amount of time and dedication, as well as the possibility of paying for time lost due to delays.

On the other hand, an agent should be able to get you photographed, labelled, advertised, and bookings coming in within 2-3 weeks from the moment you sign a contract with them. It might take several months for you to get started.

Once you’ve decided, you should have a sense of income and cost, as well as profit. So now that you’re prepared… or are you? What can set your Cotswold cottage apart from the rest?

Marketing your holiday home

The internet has opened the door to the holiday letting business. Whether it’s on your own or your agent’s website, or Google, social media, through online travel agencies (OTA’s), strategic partners and tourist boards… Your photos and property description are critical in this competitive environment.

Why should a client choose you over another property?

A professional photographer should be hired to take pictures of the property so that it may be prepared for photographs. People also like seeing a 3D tour and a floor plan so they can pick the downstairs bedroom for Granny and Grandpa or ensure that the lead booker receives the best room!

You need to make sure that you are optimizing parts of your holiday let marketing: optimise your website, photos, virtual tours, floorplan etc.

Fixtures and Fittings

It’s a good idea to prepare a sketch of your invention before you start building it. Make sure you’ve considered everything from the design perspective, such as wear and tear, ease of cleaning, and durability.

Everything from stoves, showers, kettles, refrigerators, and so on…Easy-to-use items should be considered! Make sure your beds are extremely comfy! If the mattress is unpleasant to sleep on, guests will let you know both personally and via internet reviews. If you have two pillows per person, include a small pillow as well as a conventional pillow; some people prefer a flatter pillow; and yes it may seem strange but people do notice these little touches.

Consider whether you’ll be able to clean the showers, and kitchen floor and if pets are permitted when reserving your holiday house. If that’s the case, consider stone or wood flooring instead of carpet.


Don’t forget to pick up a nice sturdy outdoor table for your visitors to sit out, have a glass of wine, barbeque, or relax in comfortable chairs beneath a parasol… You get the idea! Make sure the garden is lovely (nothing can make a home appear unkempt when you go outside and the grass hasn’t been cut, weeds are rampant, and it is generally untidy). Perhaps buy a hot tub?

Parking Availability

There’s nothing more frustrating than being unable to park, so do all you can to provide parking spaces and, if possible, provide very clear and helpful directions on where to park.

An EV charging station is becoming more useful in these days of ever-increasing numbers of electric vehicles on the road! It might make the difference between whether Mr and Mrs Tesla choose your home or the one down the road with an EV charging station.


If you would like to find out more about holiday home management, take a look at our website: StayCotswold. We will be able to help you further with anything regarding holiday homes.

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