Letting your holiday home can be one of the most rewarding ways to generate extra income, offset running costs, and get more value out of your investment. For many owners, a holiday let starts as a side project and soon becomes a reliable revenue stream that pays for itself, and sometimes quite a lot more.
Recent UK industry data shows that a well-managed holiday property typically earns income in the mid-£20,000s per year, with many owners in sought-after areas performing above average. One national letting agency recently reported an annual turnover of £24,500–£24,700, with year-on-year performance rising gradually despite increased market competition. The demand exists, guests are willing to pay for a great experience, and with the right setup, a holiday let can work very hard for you.
This guide breaks down tips for renting your vacation home, with practical steps that help you increase occupancy, improve guest satisfaction, and maximise rental income – whether you’re a first-time host or looking to optimise an existing property.
Preparing Your Holiday Home for Bookings
Presentation is what will get you bookings. It influences what people are willing to pay, how often you’re booked, and how guests review their stay afterwards. A holiday home doesn’t need to be extravagant, but it does need to be comfortable, well-equipped and visually appealing.
Make your space look inviting and comfortable
Guests want somewhere that feels clean, relaxing and easy to settle into. You don’t need a full renovation to make an impact. Thoughtful, practical improvements often matter more.
High-value upgrades include:
- Quality mattresses and hotel-grade bedding
- Fast and reliable Wi-Fi (many guests work remotely)
- Neutral décor and clutter-free rooms
- A fully equipped kitchen with useful essentials
- Soft touches – throws, extra pillows, lamps, candles
If guests sleep well and feel at home, they leave happy. And happy guests leave great reviews.
Invest in photography – it pays for itself
Strong visuals help your listing instantly stand out. You could have the loveliest cottage in the world, but if photos are dark or outdated, you’ll struggle to convert views into bookings.
Photography checklist:
- Shoot in natural daylight
- Capture full room angles – step back for space
- Highlight unique views, gardens or features
- Include lifestyle shots (breakfast table, cosy fireside)
- Add seasonal variations – summer BBQ vs winter hot chocolate
The goal is to make browsing guests think, “I can picture myself here.”
Write listings that sell the experience, not just the features
A good listing doesn’t just describe the home, it describes how the guest will feel staying there.
Compare:
- “Two-bed cottage with garden.”
- “Two-bed cottage with private garden – perfect for summer breakfasts outdoors.”
Small changes. Big difference.
When creating your listing title, be specific:
“Pet-friendly 2-bed coastal cottage with hot tub – 5-minute walk to the beach.”
Instantly clear, keyword-friendly, and guest-focused.
Smart Pricing to Maximise Income
Pricing determines your income more than almost anything else. Setting rates too low means leaving money on the table. Too high, and you risk empty weeks.
Use competitive research to find your pricing sweet spot
Look at similar properties in your area:
- Size and bedroom count
- Location – city, coastal, rural
- Amenities – hot tub, parking, workspace, pets allowed
- Interior style and finish
Guests immediately compare your listing to others. If pricing, photos and features align well, bookings follow.
Seasonal pricing = more income overall
Demand changes throughout the year, your prices should too.
Useful structure to follow:
| Season | Strategy |
| Summer & School Holidays | Highest pricing, 4–7 night minimum stays |
| Shoulder Seasons | Balanced pricing, weekends and mid-week stays |
| Winter | Lower base rate + short stays + direct booking deals |
| Local Events | Increase rates – demand spikes work in your favour |
Dynamic pricing tools update nightly rates automatically based on demand, which is a huge time-saver for hosts juggling multiple tasks.
Understand regional performance
Good to know for planning and expectation-setting:
- London stays average mid-60% occupancy with ADR above £200
- The Cotswolds & Peak District maintain strong off-peak demand
- Coastal destinations surge in summer
- City lets perform well for short breaks year-round
Strong market = strong income opportunity… but also strong competition. Presentation and guest experience matter.
Managing Guests Like a Pro
Bookings are step one. A smooth experience is what brings guests back.
Prioritise guest experience
First impressions start before arrival. A thoughtful welcome can instantly elevate a stay.
Guests appreciate:
- Clear check-in instructions sent automatically
- Keyless entry (great for late arrivals)
- Spotless presentation with no smudges, crumbs, or dust
- Quick replies to messages
- Welcome pack with local tips
A five-star stay leads to five-star reviews, and those reviews justify the premium pricing later.
Increase repeat bookings with simple retention tactics
Returning guests cost nothing to reacquire.
Ideas that work well:
- 5–10% discount for repeat stays
- Referral discounts for friends & family
- Personal follow-up messages
- Newsletter sign-up for direct booking offers
- Incentives to book direct and avoid commission fees
Customers who feel valued tend to come back.
Legal & Operational Essentials
Practical, but necessary. Running your holiday let compliantly avoids problems later.
Check local rules before launching
Some areas require:
- Short-let registration
- Planning permission
- Max number of rental nights
Also confirm mortgage and lease terms allow holiday letting.
Safety compliance checklist
Before hosting guests, ensure:
- Smoke & CO detectors installed
- Fire risk clearly explained
- Electrical and gas safety maintained
- Emergency contacts listed
- First-aid kit stocked
Add house rules that avoid miscommunication. State guest numbers, pet policy, quiet times, hot tub care, bin instructions and parking notes clearly, both online and in your welcome pack.
Know your running costs to protect profit
Income minus expenses = real profit. Track:
- Mortgage and bills
- Cleaning turnover and laundry
- Repairs and replacements
- Booking platform fees
- Maintenance – paint, carpets, outdoor care
- Technology subscriptions
- Insurance (critical – see below)
Furnished Holiday Let (FHL) rules may allow certain tax benefits. An accountant can help you optimise this.
Protecting Your Investment with Insurance
Your holiday home should make money, not cause you stress. Insurance exists to keep things running smoothly, even when the unexpected happens.
Standard home insurance usually doesn’t cover holiday lets, especially when rented to guests or left empty for long periods. You’ll need specialist cover tailored to how you use the property.
Holiday Home Insurance covers second homes used personally.
Holiday Let Insurance covers paying guests and income-related risks.
With Policy Powerhouse, you can get cover quickly online, backed by expert support.
Why owners choose Policy Powerhouse:
- 30+ years of insurance expertise
- Designed for non-standard properties and real holiday-let needs
- Data-enriched, quick quoting to save you time
- Flexible options – pay only for what you need
- Support available if things go wrong
It’s an investment in peace of mind and in your income stream.
Explore holiday home insurance and protect your property today.
FAQ – Quick Answers for Holiday-Let Owners
- What should I do before letting my holiday home?
Make sure it’s clean, safe and styled. Add quality bedding, Wi-Fi, guest info, a welcome pack and compliance checks. - How can I maximise income?
Use strong photography, dynamic pricing, clear descriptions and amenities guests value. Encourage return visits. - Best tips for renting my home as a holiday let?
Think like a guest. Good communication + a pleasant stay = great reviews and more bookings. - Do I need insurance?
Yes. Specialist holiday home or holiday let insurance protects against damage, liability, loss and unoccupied periods. - How do I price my rental effectively?
Research similar homes, adjust seasonally, and use dynamic pricing tools. Balance occupancy with rate optimisation.
Owning a holiday home can become a profitable asset. By following these tips on renting out a holiday home, you can prepare your property, price strategically, offer a smooth guest experience and secure the right insurance to turn your second home into a reliable income generator that pays off year after year.
Policy Powerhouse is here to make holiday home protection simple. Clear cover. Fair pricing. Fast quoting. Friendly support. No fuss.
Protect your property properly – get a holiday home insurance quote today.
