Running a vacation let can be exciting and gratifying, but you must first ensure that your firm will be a success. The most crucial things to consider are accounting and budgeting so that you may realistically calculate your finances.
Here, StayCotswold go through some of the most typical holiday home expenditures you’ll need to budget for so that you’re more prepared for the task ahead and can avoid any unpleasant surprises later. To assist, we’ve divided any potential spendings into “costs per booking” and “annual/monthly costs.”
A few of the expenditures will naturally vary based on the size of your home – we’ve used a 2-bedroom holiday cottage as a basis. Mortgage payments may or may not be required. There will also be “setting up expenses” (kitting out, furnishings, and interior decorating), so plan for £15,000 in total.
Holiday let management costs
Even if you have the most beautiful holiday home in the United Kingdom, it won’t get booked up if it isn’t advertised. Visibility is critical, so you’ll need to enlist the aid of a vacation cottage letting company to help your secure bookings and manage your holiday let.
A commission will be charged by holiday letting agents. The fees you may expect to pay are generally in the range of 20% to 25% (plus VAT) of the stay amount. Other elements can influence the percentage of commission charged, depending on your booking choice. There may also be set-up costs and yearly charges to consider.
They’ll spend time (time you may not have) marketing your rental to the appropriate audience/s and managing all the administration that goes with each booking in return for a commission fee.
Some landlords may save money by delegating more work to you if you want assistance with labour-intensive chores such as cleaning, laundry, general upkeep, key holding service, and emergency callouts. However, while this will save you a lot of time, you will be spending significantly more each month on administration fees for the opportunity. You’ll be able to benefit from retaining more of what you earn from each booking if you’ve got time to manage it all yourself.
How much do professional cleaners charge for a holiday let?
It’s a good idea to invest in cleaning supplies if you’re going away on vacation. Cleaning is something you should never cut corners on. The cleanliness of your holiday home may make the difference between a great review and a poor one. It’s important to maintain your property clean for your business’s reputation. Otherwise, it’s bad for your company’s image.
It’s also critical that you clean and tidies your home between each booking so that everything is ship-shape for the next person. To make things easier, allow yourself or your housekeeping staff 3-4 hours to get everything spick and span during the changeover.
The expense of cleaning your holiday home is dependent on whether you do it yourself or hire someone to perform it for you. Professional house cleaners charge between £50 and £80 to clean a cottage.
Some innkeepers also provide a “check and refresh” service to ensure that everything is in order before the visitor’s arrival if there has been a gap between bookings. The change of staff cleaning fee alone will cost you £15.
Laundry
You’ll need to spruce up not just the surfaces, floors, and furniture; you’ll also need to clean and refresh any laundry. Although many cleaning businesses provide a laundry service, you may discover that it is considerably more cost-effective to do the washing yourself.
If you, do it yourself, consider if your cleaning facilities are sufficient, as well as the cost of washing, drying, and ironing. Outsourcing to a business that offers industrial washers and dryers might be more practical.
The cost of laundry can range from approximately £35 per booking (about £1.80 per item) to nearly £100 per hour, depending on the number of items that need washing/drying/ironing.
If you’re looking to let out your home in the Cotswold area, why not contact StayCotswold today about listing your home on their website.
