Home Home Improvement Are holiday homes a good return on investment?
Are holiday homes a good return on investment?

Are holiday homes a good return on investment?

by admin

There are numerous methods to assure that your holiday house provides you with a good return on investment. Here are ten suggestions for how to make your holiday home profitable.



This is a tough situation since each homeowner is unique. Some operate their vacation home solely for business purposes, while others may want some personal usage out of it as it is a second home and a place to spend time with the family. Trying to maximize income is our first recommendation.

First, assess what you want to accomplish in terms of revenue potential realistically. We’ve always assumed that a holiday let might produce approximately £15,000 to £20,000 per double bedroom each year on average.

Please be aware that we operate in the Cotswolds, so our previous knowledge is there. The revenue potential of a business will be determined by several factors, including the precise location, the building itself, any unique features, the interiors, and other elements such as strong WiFi, garden, hot tub, and coffee machine.

Let’s take a three-bedroom property that may make between £45,000 and £60,000 per year on the assumptions above. The first thing we’d ask is whether you’re confined to that income. Is it possible to add another bedroom through planning? Or could you make use of a basement space as an additional room?

This may boost your overall income by £15,000-£20,000 simply by doing so, but keep in mind that each bedroom should have its own bathroom in an ideal world, and one bathroom per two bedrooms is the worst case (Visit England star rating is based on one bathroom per two bedrooms). Remember that VAT will be applied at a

After you’ve figured out your projected income, you should look at how you’ll operate it (operational strategy, next point), as well as how much it will cost. From there, you should be able to generate a company plan and potential profit.

Operational Strategy and Cost

There are only two feasible alternatives:

  1. A) It’s up to you to manage it.
  2. B) Hire a real estate agent.

If you “manage it yourself,” there are three things to consider in each of the following three categories:


Customer service, marketing, and maintenance are all important aspects of property management. Creating a website for your company, using OTA platforms like AirBNB to advertise your properties, taking photos and creating a virtual tour, and drawing floor plans are just a few of the tasks involved. Customer journey communications, advertisements

Admin and Guest Management:

Customer support and administration, sales and marketing, accounting/accounting services, risk management/enterprise risk, financial management/cashflow, expense reporting

Housekeeping & Maintenance:

Most holiday rental firms will cover 1 and 2 on a commission basis, leaving you to handle or arrange the housekeeping and upkeep side of things. We’ll suggest cleaning services and/or maintenance businesses to you whereupon you may establish direct contact with them.

How much time you have is the first decision you must make! If you pick the “manage it yourself” option, be aware that managing a vacation rental takes a lot of effort and dedication, as well as the possibility of costs incurred owing to delays in starting. 

Once you have decided, you should have an idea of income and cost and therefore profit. So you are now ready or are you? What is going to make you stand out from all the other holiday homes in the Cotswolds?

Marketing: Website, Photos, Virtual Tour, Floorplan, Copy

The holiday letting market is online, and there are new opportunities for you to get in on the action. Whether it’s through your own website or that of your agent, or Google, social media, online travel agencies (OTA’s), strategic partners and tourist boards… Your photos and write-up are critical as a result.

Why should people choose you over other prospective rentals? The home must be prepared for photographs and photographed by a professional. People also enjoy seeing a 3D tour and a floor plan so they can pick the Granny and Grandpa’s bedroom or ensure that the head booker gets the nicest room possible!

Fixtures and Fittings

Make sure your design is thought through. Think about how the design will hold up over time, how easy it will be to clean, and how easy it will be to use.

Cookers, showers, kettles, refrigerators, and other appliances… Make things as simple as possible to use! Ensure that the beds are very comfortable! If your visitors aren’t able to get a good night’s sleep because the mattress is uncomfortable, they will let you know both personally and via internet reviews. If you have two pillows

Also, consider whether or not the showers, kitchen floors, and/or if you allow pets at your holiday house are easy to clean. If that’s the case, think about stone or wood flooring instead of carpet. Perhaps rugs are a good idea!

Coffee machine

Yes, we have indeed become a coffee nation that adores caps, skinny-style brewing methods, and so on—there is nothing quite as soothing as arriving at a holiday cottage and seeing the Nespresso in the corner! Does anyone want a cup of coffee? Don’t forget to leave a starter pack of complimentary capsules… it’s the little things

WiFi, TV, SONOS, wireless speaker, DAB radio, spare iPhone chargers

The main point is to obtain the best internet connection possible. Simply said, make certain you get the fastest Internet access available. Most families enjoy movies, use various platforms for social networking, and then there are those who never stop working, even on holiday.

Make sure the WiFi is strong; there’s nothing worse than calling on Friday night and finding out that the WiFi isn’t working, or that you don’t know the password, or that you can’t turn on the TV! So, make sure your instructions are clear. It’s a nice touch to have a spare iPhone charger (remember to wrap it with a “Don’t remove from the property!”)


Don’t forget to pick up a nice sturdy outdoor table for your guests to sit at, have a glass of wine, and barbeque under a canopy… you get the idea. Make sure the garden is lovely (nothing beats going outside and seeing that the grass hasn’t been cut, that weeds are growing unchecked, and it’s generally unpolished). Perhaps invest in a hot tub; I bet its number two on the list of most Googled terms when it comes to holiday cottages! 


There’s nothing worse than not being able to park, so do all you can to ensure that your home has a parking spot, and if you can’t do that, at the very least provide clear and helpful directions on where to park. An EV charging point is almost always appreciated in these days of ever-increasing numbers of electric vehicles! It may make or break whether Mr and Mrs Tesla decide to stay at your place or go down the street with an EV charging station.


It’s critical that you address any problems in a timely manner. Do not wait until your property is unsafe to obtain these repairs done. You must have an insurance policy specifically designed for holiday lets, such as NFU, and you should be up to date on all electrical, gas safety, and boiler safe certifications. In addition, you are required by law to have a fire risk assessment in place. You may discover everything you need online, or we can inform you about your current legal obligations 

Welcome Pack/Gift

Finally, while you’re on your way, how about a little bit of personal touch? A well-planned welcome basket or a thoughtful present are two options. It might be as simple as a bag of local fudge or a bottle of champagne (because you have done your research and the guests are coming to celebrate an anniversary!) … And why not include a handwritten and personalized welcome note to your cottage, as well as a postcard with a good review!

Whatever you’re looking for in a holiday home agency, you’ll find everything and more at StayCotswold. We believe that owning a holiday home should be a blessing and not a burden, we go the extra mile to make sure your holiday let investment runs smoothly and profitably using our holiday home management services.

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