How much you can expect to earn from a holiday cottage.
One of the first questions we’re asked by potential owners of holiday cottages is, naturally, “How much could I earn”?
At Manor Cottages we understand and appreciate that potential earnings are the most important factor in the decision to purchasing and owning a holiday let.
Maximise revenue for each individual property
We like to treat each property for what it is, it’s unique selling points and what sets it apart from other, similar properties. We will then propose a price that we believe will generate steady bookings through the course of the year, through a mix of full weeks and short breaks, and the most revenue possible over the course of a full calendar year.
Note here that short breaks have increasingly become a significant part of the UK domestic holiday market and is an excellent way of growing occupancy and, in turn, revenue over the year.
There are a number of factors that will affect the success of a holiday cottage:
The number of beds and bedrooms a house has.
Location, especially in relation to some of the region’s more desirable areas.
The look and feel of the cottage inside – does it have magazine style appeal?
The willingness to accept short breaks and variable arrival dates.
Running your cottage to make money
Naturally there are also costs associated with the running of a holiday cottage. Some of which you would incur whether you used your property as a holiday let or not, some of which you only incur because the property is a holiday let. These include:
Utilities, Council tax / rates, insurance and repairs.
Letting Fees and Property Servicing.
So come on, get the numbers out!
We have hundreds of examples of cottages from which to draw approximate comparisons. Below are some examples to give you an indication of revenue levels. These figures are from properties we are working with presently, across different Cotswolds’ locations, with differing levels of private use.
Please bear in mind that while these are actual earnings from the properties listed in brackets, the amounts serve only as estimates of what you can expect to earn from a similar property and that they cannot be guaranteed.
Cottage Sleeping 2 (similar to Shepherds Hay in Stanton): up to £24,000.
Cottage Sleeping 4 (similar to The Lodge in Coln St Aldwyns): up to £32,000.
Cottage sleeping 6 (similar to Orchard House in Oddington): up to £45,000.
Cottage Sleeping 8 (similar to Hillside House, Swinbrook): up to £60,000.
Cottage Sleeping 10-12 (predominantly short breaks): up to £80,000.
Cottage Sleeping 14-16 (predominantly short breaks): up to £110,000 or more.