Starting a Holiday Cottage Rental Business
- Price: £5.99
- Published: January 2017
- Type: Business Opportunity Profile
- Format: PDF
- Qualifications and skills
- Key market issues and trends
- Trading, commercial and legal issues
- Further information
Holiday cottages are privately owned residential properties that are rented out to holidaymakers on a short-term self-catering basis, either by the owner directly or via a specialist letting agency engaged by the owner to market and manage the property on their behalf. Typical rental periods range from two to fourteen nights and higher rates are often charged during peak periods, such as school holidays and around Christmas and New Year.
Holiday cottage owners must meet various legal requirements such as ensuring that the property complies with building, fire and gas safety regulations, and any local planning consent requirements relating to change of use from a residential to a commercial property.
Providing holiday cottage lets is a potential diversification opportunity for farmers who have outbuildings that are suitable for converting into cottages, while other owners typically purchase and often renovate residential properties to let to holidaymakers.
Some holiday cottage owners finance their purchase using dedicated holiday let mortgages, which are only available from a limited range of providers and are usually more expensive than non-commercial mortgages, with many lenders requiring high arrangement fees and deposits.
This profile provides information about starting up and running a business letting a holiday cottage. It describes the skills required, the training available, the current market trends and the key trading issues. It also explains the main legislation that must be complied with and provides sources of further information and support.