At Silverlake, we know there’s a lot to consider when running a holiday home. This article will explain how to budget for running a holiday let so you can make an informed decision about renting out your holiday home. We’ll also show how working with Silverlake and our official holiday rental company, Habitat Escapes, can make running your holiday home a hassle-free experience.
Changeovers
Before each booking, you must undertake a ‘changeover,’ which involves cleaning the property after the previous guests have left. This usually includes tidying and cleaning the rooms, washing and changing linen, and providing welcome packs. Some holiday homeowners carry out a changeover themselves, but most hire a specialist cleaner or agency.
If you offer short breaks, remember that this will increase the changeover costs. However, short breaks often mean you can receive more bookings, particularly in the off-peak holiday season, so it's worth weighing up the options and financial implications.
Habitat Escapes (the official in-house, fully managed lettings service for Silverlake, Dorset) offers changeover cleans as part of its management service, which can also include mid-stay cleans and deep cleans. It is a reliable and friendly onsite service that runs 365 days a year.
Property and garden maintenance
You will want to consider regular window cleaning and gardening upkeep to ensure your property has kerb appeal and attracts optimum bookings.
As a holiday homeowner, you will also be required to undertake annual maintenance and servicing of boilers, wood burners (if applicable), and other appliances inside your property.
All of these property and maintenance checks can be covered at Silverlake, Dorset by Habitat Escape’s Maintenance Team - without the callout fees you’d receive from external services.
Decor, interiors and furniture
Whilst decorating and furnishing your holiday home will be an upfront cost, it will require a refresh every few years. We recommend decorating in a timeless style to give your holiday home a broad appeal whilst keeping it low-maintenance. Habitat Escapes can advise on the most appropriate, hard-wearing finishes for your Dorset holiday home. Buying a brand-new holiday home means you can decorate in a contemporary style, reducing the need to budget for this in the first few years.
You should also consider keeping an inventory of items such as crockery, cutlery and glassware and replace when items run low. At Silverlake, Habitat Escapes run property checks on all of our Dorset holiday rental properties to ensure your holiday home is just as you left it.
Utilities and subscriptions
Holidaymakers generally expect a home-from-home experience, so it’s important to ensure the following utilities are set up and run efficiently:
Gas, electric and water
Be sure to consider safety and energy efficiency. Silverlake properties are built with sustainability in mind. The Air Source Heat Pumps, solar panels and underfloor heating in our eco-friendly holiday homes all work together to reduce energy bills.
Broadband
Is there a quality connection to your holiday home? High-speed fibre-optic broadband is directly connected to all Silverlake premises, offering fast and reliable internet connectivity.
TV license and any streaming services
TV packages and streaming services such as Netflix, Disney+ or Sky can add to your holiday home costs.
Parking
Are permits required at your property? What about EV chargers? Silverlake’s Dorset holiday homes developed from 2022 onwards have EV charging points included and don’t require any permits.
Waste collection
Your holiday let is likely to be classed as a business, so you could be eligible for business waste collection. At Silverlake, there are no hidden charges as you would be covered under the annual service charge.
Annual safety checks
Running a holiday let involves meeting certain legal safety requirements and undertaking the following regular safety checks:
- • Gas safety check
- • PAT testing (electrics)
- • Fire risk assessment
- • Electrical installation condition report
Habitat Escape’s Maintenance Team at Silverlake can take care of all of this for you, even providing annual maintenance packages to reduce worry and additional call-out fees.
Holiday home insurance
While it is not a legal requirement, we strongly recommend taking out holiday home buildings and contents insurance to protect against risks such as theft or property damage.
Likewise, public liability insurance can serve as a safety net in case of any unfortunate incidents with guests. We would recommend having public liability insurance for a minimum of £2 million.
If you employ staff and cleaners for your property, you must obtain employers' liability insurance. This would also be included if you used Silverlake’s in-house Habitat Escapes service.
Council tax & business rates
The Valuation Office Agency (VOA) will work out the rateable value of your property based on its type, size, location, quality and how much income you’re likely to make from letting it.
Holiday homeowners may qualify to pay reduced business rates instead of council tax if the property is rented out for a specified number of days annually (criteria vary by council).
It’s also worth noting that if your property is located in a purpose-built holiday development, such as Silverlake, Dorset you are unlikely to have to pay a second council tax surcharge, which offers another saving in your holiday letting fees.
Service charges for holiday home developments
If your holiday home is located in a purpose-built holiday development or park, service charges are likely to be involved in managing the communal aspects of the development. This ensures properties and shared spaces are well looked after in a secure and private location that has been purpose-built for holidays.
The service charge at Silverlake covers the day-to-day management, health and safety, and security as well as ongoing maintenance and repairs for the communal areas and facilities on the estate. For holiday homes within Beaumont Village, Overton Island, Wakeling Island, Baxter’s Rise or Shepperd’s View, this includes the Hurricane Spa. There is also an Estate Premium, which is invested into the provision of estate facilities and services.
Bookkeeping and accounting
At Silverlake, we recommend hiring an accountant to ensure your finances are properly managed and the correct taxes are paid.
Hiring an accountant can also save you money. They will be able to advise you on government tax allowances and how to make the most of them.
Marketing or agency fees
Marketing your property is essential for ensuring regular bookings. You have two main options: market your holiday home yourself or use an agency to market it for you.
If you market your holiday home yourself, you will need to consider the cost of photography, a dedicated website, a booking system, and additional advertising and promotion.
Marketing your holiday cottage through an agency will involve costs (usually a commission or a percentage), but it will give you access to marketing, PR, a database of keen guests and removes all the hassle mentioned above.
Our Habitat Escapes service can market and take bookings of your Dorset holiday home at Silverlake on your behalf. This includes our website, which takes direct bookings, social media advertising, PPC, SEO, TV promotions and advertising, a large email database and a wide range of affiliates to work with. Plus, we know what we’re selling!
Find out how much income you could receive with your holiday let
By considering these holiday letting costs and estimating the income you expect to generate from renting out your holiday home, you can calculate your potential profit.
Silverlake has a range of luxury holiday lets for sale in Dorset, which, combined with the Habitat Escapes fully managed lettings service, can take much of the hassle out of running a holiday home while gaining good financial returns.
Silverlake holiday homes can also be used as your own personal holiday home to return to year after year.
Contact our Dorset Property Team, who can help work out the expected income for your holiday home and associated costs in more detail before you begin your holiday letting journey.
Disclaimer: The information contained in this article is accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time. Nothing in this article constitutes financial advice. Please always consult your accountant or solicitor for all financial, taxation or legal matters.