Costs of running a holiday let (UK): the full list + a simple monthly budgeting method

The fastest way to get caught out with a holiday let is to only model the “good months”. This page shows the holiday let costs that show up all year — plus the variable costs that rise with guests — so you can forecast your net properly.

Quick definition: “costs of running a holiday let” These are the ongoing fixed and variable costs you pay to operate a holiday rental: insurance, council tax/rates, utilities, cleaning and linen, consumables, maintenance/replacements, platform and management fees (if used), plus a contingency buffer.

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Step 1: split holiday let costs into “fixed” and “variable”

This one change makes your model realistic. Fixed costs don’t care whether you’re fully booked or quiet. Variable costs rise with stays/guests — and in short-lets, that churn matters.

Fixed costs (monthly/annual)

  • Mortgage/finance
  • Insurance (holiday let/specialist cover)
  • Council tax or business rates (depends on setup)
  • Broadband/TV subscriptions (if provided)
  • Core servicing contracts (if any)
  • Contingency buffer (small monthly reserve)

Variable costs (rise with guests)

  • Utilities (often higher than long-lets)
  • Cleaning & linen (usually per stay)
  • Consumables/restocking
  • Maintenance and replacements
  • Platform fees (where relevant)
  • Management fee (if % of revenue)
Owner tip: if you can only track one thing monthly, track number of stays (not just occupancy). It’s the best predictor of cleaning + wear.

The complete holiday let running costs list (use this as a checklist)

Cost line Fixed / variable How to budget it Common mistake
Insurance Fixed Annual premium divided by 12. Using standard home/landlord cover that doesn’t match short-let use.
Utilities Variable Start with a conservative monthly baseline, then scale with occupancy. Budgeting like a long-let (short-lets often cost more).
Cleaning + linen Variable (per stay) Changeover fee × number of stays. Add deep cleans separately. Modelling it as a fixed monthly number.
Consumables Variable Monthly baseline + a small per-stay allowance. Forgetting bins/toiletries/tea & coffee add up.
Maintenance + replacements Variable Set a monthly reserve line. Replace items proactively to protect reviews. Only budgeting for “repairs”, not ongoing wear-and-tear replacements.
Management fee Variable (% of revenue) % × monthly booking revenue (then VAT if applicable). Comparing percentages without checking what’s included vs add-ons.

A simple monthly budgeting method (5 minutes)

  1. Estimate revenue: ADR × (occupancy × 30).
  2. Estimate stays: nights sold ÷ average length of stay.
  3. Cleaning: changeover fee × stays (plus occasional deep cleans).
  4. Add fixed costs: insurance + council tax/rates + broadband + subscriptions.
  5. Add reserves: a small monthly pot for maintenance and replacements.
Want the “fee” view too? See our holiday let management costs page for a fee comparison and worked examples: holiday let management costs.
Holiday let management costs (hub) Pricing

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FAQ: costs of running a holiday let

What are the biggest costs of running a holiday let?

The biggest recurring lines are usually insurance, utilities, cleaning/linen, maintenance and replacements, consumables, and management/platform fees where relevant. The exact mix depends on how many stays you host and how hands-on you are.

Is it better to charge cleaning to the guest?

Many professional setups charge cleaning to the guest per stay because it keeps costs transparent and avoids hiding cleaning inside a higher management percentage. It also makes comparing quotes much easier.

How should I budget for maintenance in a holiday let?

Budget a small monthly reserve and treat replacements as normal (kettles, bedding, small appliances, scuffs, broken items). Staying ahead of it is one of the best ways to protect reviews.

How do I estimate monthly costs quickly?

Split fixed and variable costs, estimate stays (not just occupancy), then model cleaning per stay. Add a small reserve for maintenance and replacements so your “quiet months” forecast is realistic.