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Are you maximising the return on your holiday cottage?

PUBLISHED: 16:20 11 March 2015 | UPDATED: 14:42 20 May 2015

The Furrow

The Furrow


Promotional feature: Letting out your holiday cottage to guests can be very profitable, if done correctly. Cotswold Life speaks to Cotswold holiday letting expert, Character Cottages, to learn more.

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“Renting out your Cotswolds cottage as a holiday let can be a very profitable business”, says Mat Faraday, co-founder of Character Cottages. “For many owners, it makes financial sense to turn the fixed costs incurred when a second home is sitting empty, such as council tax and utility bills, into significant profits.”

Getting the set-up of a property right from the outset is one of the key factors to its overall financial success. Typically, the single most important driver of financial success is understanding the optimal guest capacity of your cottage. For example, if you are confident that the overall living space within your property is appropriate and large enough, then converting a spare room or a study into a double bedroom can increase your gross annual income by approximately £10,000.

The other key set-up factor that can have a major impact on performance is the general finish, décor and equipment of a property. Mat notes: “In today’s market, the best performing cottages tend to be those with a modern country look, finished in a homely but uncluttered style.”

The central location of the Cotswolds, together with its picturesque villages and stunning countryside, makes it one of the most popular regions all year round in the UK for visitors looking to rent holiday homes, which helps to ensure that high income levels are generated. For example, an average, nicely presented cottage that sleeps 8 guests should generate around £40,000 to £55,000 per annum of gross income. Exceptional properties can achieve even higher income levels.

Mat concludes: “Your holiday cottage has the potential to earn you valuable income for 12 months of the year, when it would otherwise be sitting empty. To find out more about converting your cottage to a successful holiday let, just get in touch with us and we will happily walk you through the process from start to finish.”

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Tel: 0208 935 5375


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