How Much Can You Earn From A Holiday Let?

This is the main question we get asked and the answer depends on the size, condition and location of your holiday let. It’s also important to consider the relationship between occupancy and revenue.

Occupancy v Revenue

We believe in striking the right balance between occupancy and revenue. In order to maintain a high quality guest experience, it makes no sense to rent your property every night in the year as  profitability will be impeded by running costs and inevitable wear and tear. For this reason we aim for up to 70% occupancy at the highest possible price per night to ensure we maximise your revenue and maintain the quality of your property.

Below are some case studies to give you an idea of what to expect.

CASE STUDY 1

The Family Summer House

Covering overheads without sacrificing family holidays was the prime motivator behind letting this fabulous striking 4-bedroom beach house. Sand & Stone’s flexible owner booking policy meant the house could be booked whenever they liked and rented out in between. This enables them to minimise the cost of second home ownership.

Average Annual Figures:

Average earnings from guest bookings / £70,113 pa
Average holidays enjoyed  by the owner / 107 nights pa
Average earnings if unused by owner / £120,000 pa
Average occupancy including owner bookings / 75% pa
Average nightly rate / £437

 

 

CASE STUDY 2

The Investment

This unused barn with a dated interior was lying vacant all year round and the owners saw an opportunity to convert it into an additional income stream. On a budget of £75,000 the interior was ripped out and transformed into a stylish retreat worth significantly more than what was spent on it.

With minimal personal stays taken, the owner was able to earn approximately £190,000 over 4 years, which covered the cost of renovating leaving profit for anything thereafter.

Average Annual Figures:

Average earnings / £46,293 pa
Average nights booked by guests / 271 pa
Average nights booked by the owner / 2 pa
Average occupancy including owner bookings / 75% pa
Average nightly rate / £170.82

 

 

 

CASE STUDY 3

The Best Of Both Worlds

For this 2-bedroom countryside escape the owner wanted an investment they could both enjoy and earn from. After undertaking a full renovation of the property, it was advertised for lettings with the owner taking a limited amount of nights for personal use. They see this approach as giving them the best of both worlds – a retreat that pays for itself.

Average Annual Figures:

Average earnings / £66,108 pa
Average nights booked by guests / 243 pa
Average value of nights booked by guests / £58,000 pa
Average nights booked by the owner / 31 pa
Average occupancy including owner bookings / 76% pa
Average nightly rate / £241

 

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