Costs of Running a Holiday Let UK — The Full Breakdown With Actual Figures
Last updated: April 2026
The costs of running a holiday let in the UK typically consume 25–40% of gross revenue for self-managing hosts, or 40–55% with professional management — but managed properties usually earn higher gross revenue, which is why comparing net income matters more than comparing cost percentages.
This page is written for landlords working out whether the numbers stack up before committing to short-term letting, and for owners already running a holiday let who want to check whether their costs are in line with what comparable properties pay.
The fastest way to get caught out with a holiday let is to model only the good months — this guide shows every cost that hits you all year, plus the variable costs that rise with guests, so you can forecast your net income properly.
Every cost below includes a UK price range — not just a category name with no figure, which is what most guides give you.
Holiday let running costs in the UK include changeover cleaning (£50–£120 per stay, typically paid by the guest), utilities (£150–£350/month), insurance (£200–£500/year), council tax or business rates (£80–£200/month), maintenance (£50–£150/month average), consumables (£20–£50/month), and platform or management fees (15–25% of revenue). Total running costs typically consume 25–40% of gross revenue when self-managing. The income estimate below shows what you keep after all costs are deducted.
Step 1 — split your costs into fixed and variable
This is the single most important modelling decision — fixed costs hit you every month regardless of bookings, variable costs rise with the number of stays.
Most new owners budget running costs as a flat monthly figure, which is wrong — a month with eight two-night stays costs far more in cleaning and wear than a month with two four-night stays at the same occupancy.
| Fixed costs (monthly/annual) | Variable costs (rise with guests) |
|---|---|
| Mortgage or finance payments | Changeover cleaning and linen (per stay) |
| Insurance (holiday let specialist) | Utilities — gas, electric, water (higher than long-lets) |
| Council tax or business rates | Consumables — toiletries, tea, coffee, supplies |
| Broadband and TV subscriptions | Maintenance and replacements (wear scales with guests) |
| Annual safety compliance (gas, electrical, PAT) | Platform booking fees (% of each booking) |
| Contingency reserve | Management fee if applicable (% of revenue) |
If you can only track one thing monthly, track the number of stays — not just occupancy.
Stays are the best predictor of cleaning costs and wear, and a month of short stays is significantly more expensive to operate than a month of longer stays at the same occupancy percentage.
Every holiday let running cost with UK price ranges
| Cost | Typical UK range | Fixed / Variable | What most owners get wrong |
|---|---|---|---|
| Changeover cleaning | £50–£120 per stay | Variable | Modelling as a monthly number instead of per-stay — a month with 8 stays costs double a month with 4 |
| Linen and laundry | £15–£40 per stay (if separate from clean) | Variable | Not budgeting for replacement linen sets — hotel-grade sheets last 12–18 months with heavy use |
| Utilities | £150–£350/month | Variable | Budgeting like a long-let — short-lets use more hot water, more heating cycles, and more electricity per occupied night |
| Insurance | £200–£500/year | Fixed | Using standard landlord insurance — it does not cover short-term letting and a claim will be rejected |
| Council tax or business rates | £80–£200/month | Fixed | Not checking whether the property qualifies for business rates with Small Business Rate Relief — this can reduce the bill to zero |
| Maintenance and repairs | £50–£150/month average | Variable | Only budgeting for breakages, not for ongoing wear — kettles, pillows, towels, small appliances all need replacing regularly |
| Consumables | £20–£50/month | Variable | Forgetting that toilet roll, bin bags, washing-up liquid, tea, coffee, and toiletries add up across many stays |
| Platform fees | 15.5% (Airbnb host-only, 2026) | Variable | Not accounting for the new Airbnb 15.5% host-only fee structure — this replaced the old 3% split-fee model |
| Management fee (if used) | 15–25% + VAT typical | Variable | Comparing headline percentages without checking what is included vs charged separately |
| Deep clean (quarterly) | £120–£300 per clean | Fixed (scheduled) | Skipping quarterly deep cleans and watching review scores decline as grime accumulates in areas guests notice |
| Broadband | £25–£50/month | Fixed | Choosing a cheap package — guests expect fast, reliable Wi-Fi and will mention it in reviews if it is poor |
| Safety compliance (annual) | £200–£450/year | Fixed | Letting certificates lapse — gas safety, EICR, and PAT testing are legal requirements, not optional |
For a detailed breakdown of cleaning costs by bedroom count — including what is included in a changeover clean, who pays, and how to set the guest cleaning fee — see the cleaning prices guide.
For a full list of which costs are tax-deductible as allowable expenses, including the difference between repairs and improvements, see the allowable expenses guide.
A simple monthly budgeting method — five minutes
Do not model costs as a flat monthly number — model them from stays, because stays drive the variable cost stack.
1. Estimate revenue: average nightly rate x occupied nights.
2. Estimate stays: occupied nights ÷ average length of stay.
3. Variable costs: (changeover fee x stays) + (consumables per stay x stays) + utilities estimate.
4. Fixed costs: insurance + council tax/rates + broadband + safety compliance (annualised to monthly).
5. Reserve: add £75–£150/month for maintenance, replacements, and the unexpected.
Net income = revenue minus variable costs minus fixed costs minus reserve.
If you want the calculator to do this for you with live local data, the holiday let profit calculator models revenue, turnovers, costs, and net profit in one view.
How running costs change when a management company handles the operation
Using a management company does not eliminate running costs — it changes who manages them and, in some cases, who pays them.
| Cost | Self-managing | With Stayful |
|---|---|---|
| Changeover cleaning | You find, brief, and pay the cleaner | Stayful coordinates — guest pays at cost |
| Pricing management | You set manually or pay for software (£20–£60/month) | Included — dynamic pricing daily |
| Guest communication | You respond 24/7 | Included — 24/7 |
| Platform fees | 15.5% (Airbnb only typically) | Spread across 5 platforms + 40% direct bookings (lower average fee drag) |
| Management fee | £0 (your time instead) | 15% + VAT — no setup fee |
| Maintenance coordination | You arrange and chase contractors | Stayful coordinates — you approve costs above threshold |
| Your time per week | 10–20+ hours | Near zero |
The management fee replaces the time and operational burden you would otherwise carry — it is not an extra cost on top of self-managing, it is a different way of paying for the same work.
For a detailed breakdown of what the 15% + VAT covers, see the management fees page.
Costs mean nothing without income context
Most guides about holiday let costs list every expense but never show what the property actually earns after those costs are paid.
A property with £800/month in running costs and £2,500/month in gross revenue is profitable.
The same property with £800/month in running costs and £1,200/month in gross revenue is not.
The only way to know which category your property falls into is to model the income first — then stress-test it against realistic costs.
These figures are illustrative — your property's specific numbers depend on location, bedroom count, condition, and occupancy.
The income estimate shows you the net figure for your specific postcode — after management fee and all running costs — so you can assess whether the numbers work before committing.
Why costs are not flat across the year
Running costs are not the same every month — and the months where costs are highest are not always the months where income is highest.
Heating costs increase significantly — expect utilities to run 30–50% higher than summer months, particularly for larger properties.
Occupancy drops to 40–55% in January and February for most UK markets, which means fewer stays but the same fixed costs.
This is the period where the income floor matters most — and where honest forecasting prevents unpleasant surprises.
Properties managed by Stayful still generate income in these months through contractor stays, corporate bookings, and mid-week demand that leisure-only properties miss.
More stays means more cleaning costs, more consumables, and more wear — but nightly rates and occupancy are at their peak.
Dynamic pricing captures rate premiums during bank holidays, events, and school holidays — this is where the annual income figure is built.
Cleaner availability can become tight in peak season — same-day turnarounds cost more because you are paying for certainty, not just the clean itself.
Questions about holiday let running costs
Cleaning and linen (£50–£120 per stay), utilities (£150–£350/month), and insurance (£200–£500/year) are typically the three largest recurring costs.
Platform or management fees (15–25% of revenue) are the largest percentage-based cost but only apply when the property earns.
Yes — charging the guest keeps the cost transparent and avoids hiding cleaning inside a higher management percentage or inflated nightly rate.
With Stayful, the cleaner's charge is passed to the guest at cost — the owner pays nothing for changeover cleaning.
Typically 20–40% more — short-let guests use more hot water per night, run more heating cycles between stays, and leave lights and appliances running more than a long-term tenant would.
Winter months are the biggest jump — budget for utilities to be 30–50% higher from November to February than the summer baseline.
If your property is available for short-term letting for 140 days or more per year and actually let for 70+ days, it can register for business rates instead of council tax.
If the rateable value is under £15,000, Small Business Rate Relief may reduce the business rates bill to zero — which can be a significant saving compared to council tax.
Most running costs directly tied to letting the property commercially are allowable expenses — cleaning, utilities, insurance, repairs, platform fees, and management fees typically qualify.
The key distinction is between repairs (deductible) and improvements (capital) — and between business use and private use if you also stay in the property.
For the full breakdown, see the allowable expenses guide.
Set a monthly reserve of £75–£150 and treat it as a non-negotiable line item — not something you dip into for other costs.
Replace items proactively before they fail — a broken kettle or stained pillow costs more in bad reviews than the replacement cost.
Quarterly property inspections catch issues before guests do — with Stayful, these are included in the management service.
With Stayful, the 15% + VAT management fee covers dynamic pricing, 24/7 guest communication, multi-platform listing, cleaning coordination, maintenance coordination, quarterly inspections, review management, monthly reporting, and a direct booking channel.
There is no setup fee and no onboarding charge.
For the full breakdown, see the management fees page.
It can happen — January is typically the lowest-income month, and if utilities and fixed costs are high, net income in that month may be lower than a long-term tenancy equivalent.
The comparison that matters is the annual total, not any single month — and on an annual basis, well-managed short-term lets typically outperform long-term tenancies by a significant margin.
The income estimate shows you the full-year picture including the slow months so you can assess the annual comparison honestly.
Costs are only one side of the equation
Enter your postcode to see net income after all running costs and management fee — including the slow months.