How to Start a Holiday Let Business in the UK Step by step
(with tools, templates & checklists to help you launch your business)
Starting a holiday let or self-catering / short-stay property business in 2025 can be a rewarding business, but only if you get the foundations right.
If you do not get it right, it can lead to very costly mistakes and even issues with the local authority and neighbours.
In this guide, you’ll find a clear, step-by-step path, plus links to Stayful’s tools and services to support you along the way on how to start a holiday let business or turn your investment house into a profitable holiday let.
The Airbnb Mastery Academy from Stayful
If you’ve ever dreamed of creating financial freedom through property or a business but didn’t know where to start, the Airbnb Mastery Academy could be the key that unlocks your next chapter.
Designed by experienced hosts who’ve built a seven-figure short-let business, this step-by-step online course gives you everything you need to launch, scale, and automate your own Airbnb or serviced-accommodation business — without years of trial and error for only £30.
What Is the Airbnb Mastery Academy ?
The Airbnb Mastery Academy is Stayful’s flagship training programme for aspiring hosts and property entrepreneurs looking to start a property business. Whether you’re looking to start a side hustle holiday let business or replace your full-time income.
The course guides you through the entire journey — from setup to scaling — with practical, proven systems as well as basic practise on building, systemising and scaling a profitable business.
The course is built around 11 structured modules and over six hours of expert-led video lessons, supported by downloadable templates, scripts, and tools that make implementation fast and simple. Topics include:
Setting up your property business legally and financially.
Finding and analysing profitable holiday let deals to grow your business.
Raising investment or finance for your company.
Negotiating with landlords and agents to find that one best deal
Managing guests, operations and cleaners efficiently so you only have to do it one time.
Systemising your holiday accommodation business to make it passive.
Now let’t begin with the blog!
Why a Holiday Let Company ?
You can often charge higher nightly rates than for long-term lets, especially during peak seasons running a holiday accommodation business.
You retain flexibility — you might use the property yourself during quiet times.
You benefit from capital growth in the property over time.
With the right partners or tools (such as Stayful), much of the operational burden from the business can be reduced.
Stayful offers a full Airbnb / serviced accommodation management service (for ~15 % + VAT) for property owners who’d rather outsource most of the work.
Research & Planning for your holiday rental business
Define Your Guest Profile and decide whether you want to attract, this could be:
Couples.
Families.
Groups.
Remote / workcation travellers.
Pet-owning guests.
Event planners.
Your guest type will guide your furnishing, amenities, and marketing.
Analyse Local Demand & Competition.
Browse listings on Airbnb, Booking.com, Vrbo to see what similar properties charge.
Identify gaps (e.g. few pet-friendly listings, or few with hot tubs).
Use Stayful’s Calculate Your Income tool to estimate what your property might earn.
Use Stayful’s Deal Analyser tool to run a financial viability check.
Build a strong Financial Model around your holiday rental business which should include the following:
Acquisition / conversion costs.
Financing costs (mortgage, interest.)
Running costs: utilities, cleaning, insurance, supplies.
Maintenance & repair costs.
Marketing, platform & listing fees.
Vacancy buffer (for unbooked nights) you need to be looking at 30% of your nights not being booked.
Projected occupancy & nightly rates.
From this you’ll derive net income, return on investment (ROI), and sensitivity to changes.
Choose Your Ownership Structure.
Will you own it personally, as a partnership, or via a limited company ? we recommend a limited company.
In the UK, many holiday-let owners now choose to hold property in a company — talk to a property or tax accountant early to find what suits your situation.
Is Holiday Letting Even Profitable ?
The profitability of a holiday let property can vary considerably, depending on a range of factors. However, when done right, holiday letting can be a highly lucrative business venture, but in short yes if done correctly holiday letting can produce much more profits over traditional letting.
However, it's important to note that running a successful holiday letting business also comes with its own set of expenses and considerations. These can include:
Property maintenance,
Cleaning,
Utilities.
Insurance.
Marketing.
as well as the potential for periods of low occupancy or unexpected vacancies for letting your holiday home.
To ensure profitability, holiday let property owners need to carefully plan and manage their operations, monitor market trends, and optimise their pricing and marketing strategies. By doing so, they can maximise their rental income and achieve a healthy return on their holiday home investment.
If you want more direct estimation we have a free Holiday profit calculator you can use here.
How to buy a holiday let property
When buying a holiday let property as an investment, there is some important information you should know.
Location & Access.
Choose a location close to tourist draws, natural beauty, or desirable amenities.
Ensure good access (roads, parking, public transport).
Make sure you can manage or service it (if remote).
Confirm that the local council allows short-term / holiday letting—some places restrict it.
Property Type & Condition
3–4 bedrooms often hit the sweet spot in manageability vs income potential.
Outdoor space (garden, terrace, balcony) is a bonus.
The structure and infrastructure (roof, plumbing, wiring) should be in good condition to avoid runaway costs.
Use durable finishes and guest-friendly materials.
If you're converting a non-residential building (barn, old outbuilding), check for planning or change-of-use permissions.
Mortgage & Finance for Holiday Let’s
Holiday-let mortgages tend to have stricter criteria:
Lower loan-to-value (LTV) limits, the standard is around 25%.
Higher interest rates normally 2% above buy to let rates.
More scrutiny from lenders.
Always declare your intended usage when applying — hiding it risks breach of mortgage terms.
Can you holiday let on a residential mortgage ?
The short answer is no, it is not possible to holiday let on a residential mortgage, but there are some important considerations to keep in mind.
Traditionally, residential mortgages were not designed for properties that are intended for short-term holiday rentals.
These mortgages are typically structured for owner-occupied or long-term rental properties and they may not provide the necessary flexibility or financial arrangements for holiday letting.
Alternatively, you could explore options of business finance if you are struggling to get the 25% deposit required for an holiday let property.
Legal, Safety, Compliance, costs & Tax
This is essential — get it right for the guests, or you face fines or worse.
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You operate your business under short-term / self-catering / holiday-let rules, not long-term residential. Different obligations apply because you are no longer using your property for tenants but guests.
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In England, if your property business is available to let for at least 140 nights for guests and let for at least 70 nights also for guests, you may be able to reclassify to business rates rather than pay council tax. You must apply via the Valuation Office Agency (VOA).
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You’ll likely need:
Annual gas safety checks (Gas Safe.)
Electrical safety testing and PAT for appliances.
Fire safety: smoke alarms, fire extinguishers, escape routes.
Risk assessments (stairs, wet surfaces, furniture.)
Extra regulation if you have a pool, hot tub or spa.
A suitable holiday-let / short-stay insurance policy covering:
Public liability.
Contents / furniture damage.
Loss of income during downtime.
Accidental damage.
Licensing, Planning & Local Rules.
Do not worry too much about different kinds of home insurance for your business unless for the holiday let mortgage, the online platforms have insurance cover for the guests who stay.
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Neighbour / noise / waste rules.
Planning permission for your holiday let (if conversions or structural changes.)
Check your local authority early to avoid surprises when turning your property into a holiday let or if you do a property purchase for holiday letting.
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All rental income must be declared; you can deduct allowed expenses for your holiday let property.
The UK’s Furnished Holiday Let regime has been largely removed; many holiday lets are taxed like standard rentals.
If operating via a company, profits are subject to corporation tax; mortgage interest deductibility rules differ.
Keep an eye on Capital Gains Tax, VAT, and local property levies for holiday let properties.
Interior, Furnishing & Guest Experience
This is where you win over guests—and earn better reviews and repeat bookings for your holiday rental business or short-term lettings business.
Choose a “feel” that suits your guests:
Boutique / luxury.
Rustic / countryside.
Coastal / beachy.
Family / pet-friendly.
Minimal / modern.
This guides your decor, photography, and guest communications.
Furnishings & Materials
Use durable, guest-proof materials (easy to clean.)
Neutral base colours with character pieces.
High quality beds, pillows, linens.
Good lighting, blackout curtains, heating / ventilation.
Storage, coat hooks, luggage racks.
Amenities Guests Expect.
Here’s what’s often expected—or will delight
Fast, reliable WiFi.
Fully equipped kitchen (pots, utensils, appliances.)
Coffee & tea station.
Towels, sheets, spare blankets.
Toiletries (soap, shampoo, etc.)
TV / streaming / entertainment (books, games.)
Cleaning supplies
Local guides, maps, suggestions.
Welcome pack or local treats.
Outdoor seating, garden / terrace.
Heating, insulation, ventilation.
Pet amenities (if you allow pets.)
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Rooms should feel open and easy to move around.
Clear signage & instructions.
Accessibility where possible.
Luggage and coat storage near entrances.
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Use natural light.
Declutter rooms before shooting.
Highlight special features (views, gardens, terraces.)
Show lifestyle (set tables, cosy corners.)
We have a free Airbnb setup guide on our website including furniture suppliers and a step by step plan for people un sure on how to best set up their holiday let property.
Holiday let business plan template
A comprehensive business plan is essential for the success of any holiday let property business. Here's a template to help you create a well-structured and effective business plan:
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Solid systems elevate you from a hobby to a business.
Booking & Channel Management.
Use a channel manager to sync availability across Airbnb, Booking.com, Vrbo, your own site.
Automate guest communications (arrival instructions, check-in, check-out.)
Use dynamic pricing tools (to adjust rates automatically)
Stayful provides pricing and revenue insights and support.
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Options include:
In-person key handover.
Key safe / lockbox.
Smart lock / remote check-in.
Remote / automated check-in gives you flexibility and less dependence on being physically present.
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For each guest departure:
Full clean of all rooms.
Replacement of linens / towels.
Restock consumables.
Inspect for damage or issues.
Use checklists for consistency. Maintain a roster of reliable local tradespeople (plumbers, electricians, gardeners) and plan preventive maintenance.
Guest Communication & Support.
Be responsive (ideally within hours.)
Provide a guest manual: how things work, local tips, emergency contacts.
Offer concierge or local add-ons (tours, bikes.)
Encourage reviews and respond to guest feedback.
Accounting & Monitoring.
Use property management or accounting software.
Store and organise receipts, invoices, contracts.
Separate business vs personal finances.
Track metrics: occupancy, average rate (ADR), net margins, maintenance cost per stay.
If scaling or remote, you may outsource or hire a local manager — but always evaluate impact on cost and quality.
Marketing, Pricing & Channels
A great property business needs bookings to generate income, these listings sites are a great start
Listing Platforms.
Airbnb, Vrbo. (best listing site for holiday guests)
Booking.com / Expedia.
Specialist holiday-let / cottage sites.
Your own website (enabling direct bookings.)
Local tourism boards & visitor centres.
Never rely on just one channel — diversify.
Pricing & Yield Strategy for your business
Use dynamic pricing
Offer weekend breaks, weekly stays, discounts for longer stays.
Set minimum night stay to reduce turnover cost.
Increase rates for events, holidays, peak times.
Use introductory pricing to build reviews.
Listing Optimization & SEO.
Use keyword-rich titles (e.g. “Coastal cottage, dog-friendly, sea view.”)
Write benefit-driven property descriptions
Use high-quality photos.
Respond quickly — platforms often reward responsiveness.
Use tags (e.g. "pet friendly", "hot tub", "countryside.")
Content Marketing & Social Media
Showcase property, guest stories, local attractions on Instagram / Facebook.
Produce local guides or blog posts (things to do in your area.)
Partner with local influencers, tourism bodies.
Local Partnerships
Collaborate with restaurants, tours, activity providers.
Offer guest discounts or cross-promotions.
List on local visitor websites, tourism boards.
Off-season & Promotional Strategies.
Midweek discounts.
Themed packages (romance breaks, walking weekends.)
Loyalty or repeat-guest discounts.
Soft Launch, Testing & Refinement
Before full-scale operations:
Invite all friends, family, or trial guests to stay free or at a discount
Test all your check-in, cleaning, guest communication, check-out workflows
Identify bottlenecks, errors, weak spots — refine your process
Start with a limited set of dates or listings
Collect early reviews and feedback
This gives you space to fix issues before going live fully.
Monitoring, Iteration & Scaling
Once all live, your role shifts to optimisation and growth.
Key Metrics to track in your property business
Occupancy rate (nights booked vs nights available)
Average Daily Rate (ADR)
Revenue per available night (RevPAR)
Net profit margin after all costs
Guest satisfaction / review score
Maintenance, cleaning cost per stay
Levers to Improve
Increase occupancy (via marketing, promotion)
Raise rates through upgraded amenities, repositioning
Reduce costs (bulk supplies, efficient cleaning, preventive maintenance)
Upsell extras (late check-out, local experiences)
Stayful tip: Use guest feedback to iterate and improve.
Scaling to Multiple Properties
Once your system works, replicate it.
Use uniform property management / booking systems.
Create Standard Operating Procedures (SOPs.)
Shared cleaning / maintenance teams.
Hiring local managers or outsourcing operations.
Unified marketing and listing strategy.
Scale carefully — maintain service quality.
Common Pitfalls & How to Avoid Them
Overoptimistic occupancy / nightly rate assumptions.
Underestimating running or maintenance costs.
Failing to comply with legal, licensing, or safety regulations.
Poor guest experience (bad photos, unclear instructions.)
Calendar or double-booking errors.
Reactive rather than preventive maintenance.
Relying on only one booking platform.
No plan for slow season dips.
Avoid occupancy conditions.
Stayful’s Tools & Services to Use
To “include them all,” here is how each of Stayful’s offerings can support the stages of your journey:
Airbnb / Serviced Accommodation Management (15 % + VAT) — full operational outsourcing.
Calculate Your Income — estimate your potential earnings.
Deal Analyser — evaluate whether a property investment is viable.
Holiday let check in guide template.
How much is holiday let insurance ?
The cost of holiday let insurance can vary significantly depending on a range of factors, such as the location, size, and value of the property, as well as the level of coverage required.
However, as a general guideline, you can expect to pay anywhere from £200 to £1,000 or more per year for a comprehensive holiday let insurance policy.
Here are some of the key factors that can influence the cost of holiday let insurance:
Property value: The higher the value of your holiday let property, the more it will cost to insure. Insurers will typically base the premium on the rebuild cost of the property.
Geographical location: Properties in high-risk areas, such as flood zones or areas with a higher crime rate, may incur higher insurance premiums.
Occupancy levels: Properties with higher occupancy rates or longer rental periods may be more expensive to insure, as they present a higher risk of potential claims.
Amenities and facilities: Holiday lets with additional features, such as swimming pools, hot tubs, or other high-value amenities, may require more specialised and costlier insurance coverage.
Claims history: If your holiday let property has a history of claims, whether related to damage, theft, or liability issues, your insurance premiums may be higher.
Level of coverage: The more comprehensive the insurance coverage you require, the higher the overall cost. This can include buildings insurance, contents insurance, public liability insurance, and any additional add-ons.
It's important to note that the cheapest option may not always be the best choice for your holiday let business. It's essential to carefully evaluate the coverage offered by different insurers and choose a policy that provides the necessary protection, while also considering the long-term cost-effectiveness.
To get an accurate estimate of the insurance costs for your holiday let property, it's recommended to obtain quotes from multiple insurance providers that specialise in the vacation rental market. This will help you find the most suitable and cost-effective insurance solution for your business.
FAQ
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Holiday lets often generate higher returns compared to standard long-term rentals. You can also benefit from:
More control over when the property is available
Potential tax advantages (such as Furnished Holiday Let relief)
The ability to use the property for your own holidays
More opportunities to scale into a property business, not just a side hustle
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The most successful holiday lets are in high-demand areas — coastal towns, countryside retreats, or vibrant city centres. However, it’s less about size and more about guest experience. A well-presented studio in a great location can outperform a large house in the wrong area. Use Stayful’s deal analysis tools to assess occupancy rates, nightly rates, and ROI potential.
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Earnings depend on property size, location, and occupancy rates. In many UK holiday destinations, a well-managed short-let can generate 30–50% more income than a standard buy-to-let. The key is consistency — strong reviews, good pricing strategy, and repeat bookings.
Stayful’s community regularly shares examples of hosts earning £2,000–£5,000 per month per property once systems are in place.
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Absolutely — with the right systems. By using automation tools, cleaning teams, and local co-hosts.
Many owners achieve a passive or semi-passive setup. This approach is a major focus in Stayful’s Airbnb Mastery Academy,
which teaches you how to systemise and scale your operations while maintaining quality control.
Holiday Let Management
If you are looking to make all of these checks you need to do to make your listing stand out and also keep Airbnb fees low, it might be worth while partnering with an Holiday Let management company.
Stayful provide Airbnb and holiday let management nationwide and will make sure you are maximising the revenue of your Airbnb listing as well as:
Finding quality cleaners
Chasing for reviews
Listing optimisation
Key management
Pricing strategy.
Making your Airbnb investment passive, if you are interested then let’s have a chat!