Holiday Let Start-Up Costs — What to Budget Before You Begin
Last updated: May 2026
Start-up costs for a holiday let split almost entirely by one factor: whether the property is already furnished or not.
A landlord switching a furnished property from a long-term tenancy typically spends under £1,500 to reach their first booking.
A landlord setting up a property from scratch — unfurnished, no compliance certificates, no operational infrastructure — typically spends £3,000–£7,000.
This page gives you the honest figure for both situations, what each line item typically costs in 2026, and when those costs are recovered from income.
Switching a furnished property from long-let to holiday let typically costs under £1,500 — mainly a deep clean, outstanding safety compliance, and extra linen sets. Setting up from scratch typically costs £3,000–£7,000 for a 2-bed. Stayful charges £0 setup fee and includes photography. At conservative occupancy, switching costs are typically recovered within the first month of income. Full breakdown by situation is below.
If you’re switching from a long-let — what the start-up actually costs
A furnished property that has just had a tenancy end is the lowest-cost starting point.
The property already has furniture, appliances, and a kitchen — the preparation work is compliance, cleaning, and filling any furnishing gaps.
| Cost item | Typical range | Notes |
|---|---|---|
| Deep clean (end of tenancy) | £150–£400 | Professional clean before photography. Larger properties at higher end. |
| EICR if due or overdue | £150–£300 | Required every 5 years. If current, cost is £0. |
| Gas Safety Certificate if lapsed | £60–£120 | Annual renewal. If current, cost is £0. |
| Additional linen sets | £80–£200 | Minimum 2 sets per bed. Many long-let properties have only 1 set. |
| Towel sets | £40–£100 | Bath and hand towels per sleeping guest capacity. |
| Minor repairs and touch-ups | £0–£500 | Scuffs, minor damage from outgoing tenancy. Varies widely. |
| Welcome pack (first stay) | £30–£60 | Consumables for first guests. Ongoing cost recovered from cleaning fee thereafter. |
| Photography (with Stayful) | £0 | Included in Stayful management — no charge for first shoot. |
| Typical total | £560–£1,680 | Most switching landlords land under £1,500. |
At conservative occupancy (48% uplift on a typical long-let), a switching landlord typically recovers their entire start-up cost within the first income payment.
The question is not whether to spend — it is how quickly you earn it back.
If you’re setting up from scratch — full furnishing budget by property size
An unfurnished property needs everything — furniture, kitchen equipment, linen, compliance certificates, and operational infrastructure.
The range below assumes mid-market furnishing suitable for a 3–4 star equivalent booking position.
A budget approach with second-hand or flatpack furniture sits at the lower end; a premium approach with coordinated interiors sits above the range.
| Cost item | 1-bed | 2-bed | 3-bed |
|---|---|---|---|
| Bedroom furniture (bed, mattress, wardrobe, storage) | £400–£900 | £700–£1,600 | £1,000–£2,400 |
| Living room (sofa, TV unit, coffee table) | £400–£900 | £500–£1,200 | £600–£1,400 |
| Kitchen (table, chairs, small appliances) | £200–£500 | £300–£700 | £400–£900 |
| Linen, towels and bedding packs | £150–£300 | £200–£450 | £300–£600 |
| Soft furnishings and decor | £150–£400 | £250–£600 | £350–£900 |
| Safety compliance (EICR, Gas, detectors) | £250–£500 | £300–£600 | £350–£700 |
| Professional photography (with Stayful: £0) | £0–£250 | £0–£350 | £0–£400 |
| Typical total | £1,550–£3,750 | £2,250–£5,500 | £3,000–£7,300 |
What you recover and when — the break-even calculation most guides skip
The start-up cost only matters in relation to how quickly it’s recovered from income.
At the UK-wide conservative uplift of 48–66% over a long-let equivalent, a typical 2-bed short-let generates approximately £1,814–£2,034 net per month in year one.
| Scenario | Start-up cost | Monthly net income (conservative) | Break-even |
|---|---|---|---|
| Switching from long-let — furnished 2-bed | £800 | £1,814+ | Month 1 |
| Switching from long-let — furnished 2-bed (compliance due) | £1,400 | £1,814+ | Month 1 |
| Fresh setup — unfurnished 2-bed (budget furnishing) | £2,500 | £1,814+ | Month 2 |
| Fresh setup — unfurnished 2-bed (mid-market) | £4,500 | £1,814+ | Month 3 |
| Fresh setup — unfurnished 3-bed (mid-market) | £6,500 | £2,400+ | Month 3–4 |
The ongoing monthly costs to plan for once you’re live
Start-up costs are a one-time spend.
The ongoing costs below are what you pay every month — and which of them you pay directly versus which Stayful handles within the management fee.
| Monthly cost | Typical amount | Who pays |
|---|---|---|
| Stayful management fee | 15% + VAT on accommodation revenue | Deducted from payout |
| Changeover cleaning | £50–£120 per stay | Charged to guest — not owner |
| Utilities (gas, electric, water, Wi-Fi) | £120–£280/month average | Owner pays directly |
| Council tax or business rates | Varies by property and occupancy days | Owner pays — see business rates guide |
| Holiday let insurance | £30–£80/month | Owner pays directly |
| Maintenance and repairs | £30–£100/month average | Owner pays — Stayful coordinates |
| Linen replacement (annual) | £15–£30/month equivalent | Owner pays when items need replacing |
What landlords ask about start-up costs before they commit
For a switching landlord with a furnished property, the spend is minimal — typically under £1,000 before you have a realistic income figure.
The free income estimate gives you a postcode-level net figure before you spend anything, so you can make the decision with real data rather than best-case projections.
Run the estimate first, then decide whether the start-up spend makes sense for your specific property and situation.
Stayful’s 15% + VAT management fee is deducted from your accommodation revenue — not added on top of a gross amount.
Cleaning is charged directly to guests as a per-stay fee and does not reduce your payout.
The income estimate shows your net figure after the management fee is applied — no additional management costs exist beyond the 15% + VAT.
Budget furnishing is a legitimate starting point and does reduce upfront cost.
The trade-off is that a lower-standard listing typically achieves a lower nightly rate and attracts more price-sensitive guests — which can affect review scores and repeat bookings over time.
A practical approach is to start at a clean, functional mid-budget standard — which photographs well and earns a solid nightly rate — and reinvest in upgrades from the income in year one.
Some start-up costs are deductible as revenue expenses — cleaning, safety compliance, and consumables typically qualify.
Initial furnishing of a holiday let is generally treated as capital expenditure, which has different rules under the 2025 tax changes following the removal of Furnished Holiday Let status.
Always confirm the tax treatment of your specific start-up costs with a qualified accountant who specialises in property income — the rules changed significantly in April 2025.
or run the free income estimate below — 2 minutes, no obligation
See your break-even point before you spend a penny
Run the income estimate for your postcode. Net monthly figures so you can calculate payback before committing to start-up spend.