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The Complete Vacation Rental Business Plan (+ Template)

Get tips on how to use Hostfully to optimize your vacation rental business and make more profit.

What’s in this article?

Creating a vacation rental business plan isn’t just about securing financing or finding properties to manage; it’s also about having a roadmap for business growth. 

Business plans anticipate possible mishaps so that you can prepare for them in advance. They also let you set milestones to guide your business development. Finally, vacation rental business plans can help you secure financing to fuel your business’ growth.

A business plan takes time and it can be intimidating to know where to start, but it doesn’t have to be. If you’re wondering where to begin or what to include, we’ve got your back! Using this comprehensive guide, you can develop a vacation rental business plan using the downloadable template provided. 

Click to download (It’s free!)

Vacation rental business plan template.

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What is a vacation rental business plan?

A vacation rental business plan describes the steps to reach your financial, marketing, and business goals . It should assist you and potential investors in understanding your short-term rental business’s profitability. 

Along with describing the goals, strategy, and tactics, you should also use this plan as a guide to ensure you’re headed in the right direction.

Why do you need a vacation rental business plan?

A vacation rental business plan prepares you for the future as it anticipates goals, milestones, and possible mishaps. But a vacation rental business plan can also help you secure financing, plan for the long term, set clear goals that increase your chance of success, and budget sensibly.

1. Secure financing

Just like you wouldn’t lend your car to a friend who doesn’t know how to drive; banks won’t lend you money if you can’t prove that you’ll pay them back. 

A vacation rental business plan is a way of letting potential investors know that you have a strategy in place to build a profitable business. 

2. Plan for the long term

Planning for business growth allows you to choose tools and systems from the beginning that will scale with you. For example, without long-term planning, you might end up having to change your property management system (PMS) in the future as the needs of your business outstrip the feature set of the cheap solution you chose without future growth in mind. Being able to plan for what you’ll need as you grow will ultimately save you time and money.

3. Set clear goals

It’s easier to achieve success if you first define what success looks like and give yourself clear goals to work towards. These goals should be measurable and achievable, for instance, establishing you need a 60% occupancy rate in your first year to cover costs. If you’re succeeding in meeting some of your goals but falling short when it comes to others, you’ll be able to identify where you need to make changes in your business.

4. Budget with confidence

Running the numbers and having a plan that backs up your vacation rental property investment reduces the luck element of buying real estate. Having a business plan with financial projections allows you to allocate a realistic budget for renovations, furnishing, decoration, software, permits, and staff.

A business plan will help you anticipate cash flow issues you may face. For example, as your reputation builds, your property may have fewer bookings at first, so some expenses will be out of pocket. 

What to consider before creating a business plan for your short-term rental business

Before you start writing your business plan for your STR business, you should: 

1. Do your research

Make sure you research to understand local laws, the challenges presented by the location of your properties, and the types of units you’re going to be investing in.

Review local laws, regulations, or restrictions before buying a second property or turning your home into a short-term rental business . 

You should also look into what’s being discussed in the media about the market you’re researching. There may not be a law yet, but there are rumors that vacation rentals will be prohibited and you should know about it. 

Location can also determine your rental’s profitability. If you buy or manage a vacation property in an up-and-coming location, or a place that has a nearby attraction, your place might be in high demand. Location is also important when looking for possible cleaners or maintenance workers. A cabin in the woods sounds nice until no one wants to drive there to clean it or fix a broken pipe. 

Type of unit

You should look at the market to understand which types of units you should be managing and what challenges they present, as well as how profitable they might be. You can rent nearly anything:

• Tree houses
• Glamping domes and yurts
• Apartments of different sizes
• Family homes
• A night in a Tesla parked in your garage ( yes, really )

Compare existing listings against similar units in your location to get an idea about how much guests are willing to pay to stay in them, how much demand exists in your area, and what amenities will set you apart from the rest.

Furnishing and renovations

Determine how much money and time you’ll need to renovate and furnish your unit. Find out what sort of amenities are expected in your area and what extra things you could invest in to give yourself a competitive advantage.

2. Choose your business model

If you’re buying properties to rent rather than simply managing properties on behalf of owners, there are several different business models to consider:

• House Hacking. If you’re accessing a loan for buying your primary home, you might get to invest less money but you’ll need to use the property as your home. In that case, you can use house hacking to rent your guest room or your studio to reduce the mortgage out-of-pocket payments. 
• Glamping. Some countries offer loans for purchasing glamping domes or yurts. It’s also less expensive than purchasing a property and it can be quite profitable. You can rent your dome or yurt from $150-400 a night.
• Rent your property. If you take out a loan for a vacation home , you can rent the property to pay for the mortgage and make a profit.  
• Rental arbitrage. This STR business model requires almost no initial investment from your end other than the costs related to renting an apartment. In the rental arbitrage model, you sublet an apartment on Airbnb , Vrbo , or any other OTA to pay for rent and make a profit. Your landlord should be notified and give you written consent if they approve.

3. Consider financing options

Your vacation rental business plan is also a way to pitch your company to potential investors. If you’re about to start a property management company , creating a business plan is a great way to formalize it. 

Depending on your business model , you’ll have access to different financing options that have very different initial payment rates. When you know how much money you can invest upfront and who your target investors are, you can tailor your vacation rental business plan accordingly.

4. Determine profitability

Before you buy or agree to manage any rental property, you should run a competitive analysis to determine if it’s going to be profitable. You can use tools like Vrolio or AirDNA to estimate expenses, nightly rates, and estimated occupancy. Make sure you run your calculations on cautious scenarios. Never estimate 100% of occupancy. If it’s your first STR, estimate vacancy at around 45-50% . 

Even Rob Abasolo from Robuilt who has various successful STR properties doesn’t run estimates assuming a perfect year. “I wouldn’t calculate my numbers based on a 100% occupancy rate ,” Abasolo shared. “When I’m running the numbers to see if a deal works, I’m typically running my calculations at an 80% occupancy rate .”

What to include in your short-term rental business plan?

Your business plan is a living guide that contains all your goals for your business and how you plan to achieve them. That’s why it contains goals, milestones , and an initial financial forecast. It’s an outline of what you’re planning to do, why you’re doing it, and how you’re going to succeed. You can present this as a one-pager or a longer form shareable document.

1. Executive summary

This section is an overview of your business, you should mention:

• Who you or the property owners are
• The skills you excel at
• Your experience in the business
• Your short and long-term objectives 
• The location of your vacation rental (mention nearby attractions)
• Your business model (house hack, glamping, second home, or rental arbitrage)
• A broad description of your guest persona  
• If it’s a seasonal rental, for example, a beach house for summer

2. Company description

In this section, you should get into more detail about your company. Talk about your mission statement, unique selling point ( USP ), and value proposition (more on this later!)

If this is your first investment property, create those statements and include them here. You can adjust future plans as your business grows. 

3. Business goals 

The first two sections of the business plan give readers a broad overview of where your business is headed. Here is where you get to explain in detail what you’re aiming to achieve with your vacation rental. 

You can follow any goal-setting methodology that you prefer—S.M.A.R.T, H.A.R.D, or W.O.O.P. The important thing is that you set objectives for different aspects of your business. Answer the questions below to get some ideas: 

• What’s your minimum acceptable CoC return? 
• What’s the minimum occupancy rate you need to meet your expenses?
• What’s your expected monthly profit? 
• What percentage of your total revenue goes into operations and expenses?
• Do you need to hire a team? If so, how will you rate their performance?
• What are the tools that you need to learn how to use?
• What aspects of your business can be automated?
• How are you planning to improve the guest experience?
• Are your listings SEO optimized? How are you measuring success?
• Will you promote using a mix of niche and popular OTAs ? 
• What’s your plan to increase direct bookings?
• Are you using social media to promote your listing?

4. Guests personas

A huge part of marketing your property is defining who you are talking to. Do you want your property to be used by families, expats, digital nomads, or college students?

Defining your guest persona allows you to determine your value proposition , unique selling points , and marketing strategy . Include their:

• Demographics
• Motivations
• Behavioral characteristics
• Booking habits
• Preferred OTA

If you have a pet-friendly property and you want to attract dog owners, then, your marketing strategy will be more successful if you promote on niche listings like BringFido along with global listing sites.

5. Value proposition  

Your value proposition is how your guests will perceive your property compared to others. Why should guests choose your property? What’s your added value? 

Maybe you offer flexible check-in or you offer a discount to the local museum. Define how you’re improving the guest experience and write it down, that’s your value proposition . 

6. Competitive analysis 

Analyze your competitors and the industry to determine what makes your property different from others and how you can position that difference as a unique selling point ( USP ). This is different from your value prop. Your USP is how you’ll differentiate your property and listing when you’re selling it; the value proposition is how you’ll improve the overall guest experience. 

For example, let’s say you bought soundproof windows and a memory foam mattress that guaranteed a good night’s sleep, that’d be your value proposition. If you offer one free night to guests who book a three-day stay, it becomes your unique selling point.

You can use tools like Zillow and AirDNA to look into your local competitors and ask yourself if your property is better than other competitors because you:

• Is it easier to access using public transportation?
• Is it closer to the beach or the main city attraction?
• Is it downtown?
• Is the price -value ratio better than the competition?
• Does it have discounted rates on certain days of the week?
• Does it have better amenities? 
• Does it look clean and new?
• Does it have a copy that converts?
• Is the description clear?
• Does it have professional photography?

You should also define which listing sites your competition is using and see if there’s any room for improvement. 

7. Operations and teams  

Your operation plan is a rundown of how you’ll operate your business, how much it’ll cost, and which tools you’ll use. Some tasks you should outline include:

• How are you going to account for everything that’s in your property? 
• How are you planning to restock the lost or broken items? 
• How many times a year will you do an inventory check?
• Are you hiring a team to work full-time on your property? 
• Did you already hire a cleaning and maintenance agency?
• Are you managing your Airbnb using software ? 
• How are you managing different channels and distribution? 
• Are you outsourcing your operations to a property management platform like Hostfully? 
• Do you have a tool to keep track of your accounting? 
• Are you hiring someone to do it for you? 
• How are you keeping track of your escrow, insurance, and taxes payments?
• Are you adding smart keyless locks, plugs, and lightbulbs to save time and power? 
• How are you communicating with your guests? 
• Are you building any automations ? 
• Are you using a vacation rental management platform like Hostfully to automate guest messaging?

8. Expenses

List all of your fixed and variable costs including:

• Mortgage payments
• Staff members (if any)
• Hospitality tools like property management system, channel manager , and dynamic pricing
• Utility bills (water, power, internet)
• Credit card installments for furnish 
• Taxes and insurance

You should have that information from your research stage and your profitability analysis. Then, based on your total expenses, you determine the minimum and maximum nightly rates that you’re able to offer based on a safe estimated occupancy rate . 

So, let’s say your expenses are $2,300 a month and you’re estimating a 60% occupancy rate . That means that you’re expecting your property is booked for at least 18 days each month. That makes the minimum nightly rate $128. If you compare against similar properties and your rate is too high, you should look into a different market, see where to cut expenses, or offer a premium experience.

9. Pricing and revenue management

There are tools like Vrolio that allow you to define your base nightly rate based on your expenses and your competitors automatically. A good tip is to launch your property with a low nightly rate to get eyeballs on your property, get momentum, and start collecting reviews.

Having a pricing strategy for your vacation rental lets you start with a low nightly rate and once you have a set of positive reviews that make your listing more accurate, you can start adjusting your prices . A great way to ensure your prices are adjusted to match demand is by using a dynamic pricing tool. If you’re using Hostfully as your property management software, you can do revenue management from the same platform due to our integrations with: 

• NightPricer

10. Financial plan for growth and scaling

This is the section that investors really want to see. It’s what determines if your STR business is a good investment. If this document is for personal use, this section is still crucial for defining milestones and keeping track of possible cash flow issues. 

You should tell your previous history by managing your personal or business finances. At this point you need to answer these questions:

• Are you taking out a loan? What’s the interest rate? Is it fixed or variable?
• Do you have savings?
• Are you splitting the costs with someone else?
• What’s your expected yearly ROI?
• What’s your expected CoC return?
• What’s your cash flow forecast?
• What’s your expected monthly income after expenses?
• What’s your loss projection?
• What are the yearly milestones that you expect your business to reach?
• Did you do a cost analysis?

11. Marketing and distribution

Just like you would with any other business, you should think about marketing your property. For vacation rental businesses, marketing and distribution go hand-in-hand. Each listing site or online travel agency ( OTA ) has its own audience. For example, Vrbo is targeted at families, while Airbnb is more suited for millennials and freelance business travelers . 

For your marketing plan you should answer the following questions:

• Where does your guest persona search when looking for a place to stay?
• Does your guest persona plan trips based on location or based on the property? (For example, are your guests staying at your place due to location? Or because you have a cool property?)
• Which online marketing channels are you using? Paid ads, social media , SEO ?
• Are you listing in niche and global OTAs ? Which ones?
• Is your listing copy snappy and inviting?

12. Appendix 

Every business plan should contain an appendix. Here’s where you should add any relevant documents, graphs, calculations, and pictures. You can also include additional information that supports your background or business experience.

Common mistakes to avoid when creating a short-term rental business plan

Whenever you’re writing a business plan for your STR, you should beware of these common mistakes and try to avoid them:

Under budgeting

It’s common to allocate less money than needed to:

• Pay for software like a PMS, channel manager , and dynamic pricing tool
• Staff (if you have any)
• Furnishing and decorating your property
• Renovations if you buy a fixer-upper

Targeting everyone

It’s common to think that if you target everyone you’ll get more eyeballs on your listing and that will translate into bookings. That might happen once or twice, but if your potential guest can’t relate to your listing description they’re not going to book it. Targeting your listing to your guest personas and promoting your property in the right distribution channels is a more effective use of your time and money.

Underestimating competition

Everyone thinks that their property is better, prettier, and more comfortable than the others. It’s a common mistake to underestimate the competition. Doing a thorough competitor analysis is a good way to prevent this.

Unattainable financial goals

Short-term rental businesses are often profitable, but they’re not magical. Make sure the goals you’re setting for your business in the financial plan are attainable and realistic. For example, make estimates based on your least expensive nightly rate and the minimum needed occupancy rate . 

Do you need a vacation rental business plan? 

Whether you’re financing or using your savings to pay for your vacation rental property , you need to make a business plan to forecast growth. Your business plan should include: 

• Executive summary and company description
• Business, financial, operation, marketing plan, and goals
• Guest personas and value proposition
• Competitive analysis of your competitors and the industry
• Expenses, pricing , and revenue management
• Appendix for additional information

If you’re planning to automate parts of your business, consider incorporating Hostfully into your operations plan . We’re a vacation rental software that lets you automate your day-to-day admin tasks, manage different channels, and do dynamic pricing all in one place.

Frequently asked questions about vacation rental business plans

Do i need a vacation rental business plan.

You need a vacation rental business plan to outline your business milestones and goals. This document will be your guide in terms of how to manage your STR marketing, operations, and finances. 

Having a vacation rental business plan helps you anticipate cash flow issues and see progress toward financial goals.

What does a vacation rental business plan include?

A vacation rental business plan includes twelve different sections to outline your strategy and tactics to make your business profitable. These sections are:

• About section or executive summary
• Company description
• Business goals
• Guest personas
• Value proposition
• Competitive analysis
• Operations and teams
• P ricing and revenue management
• Financial plan for growth
• Marketing and distribution
• Press & Podcasts
• Testimonials
• Affiliates & Referrals
• Partner Promotions
• Customer Support
• Onboarding Webinars
• Join office hours
• Join CSM office hours
• API Documentation

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Vacation Rental Business Plan Template

Written by Dave Lavinsky

Vacation Rental Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their vacation rental companies.

If you’re unfamiliar with creating a vacation rental business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a vacation rental business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Vacation Rental Business Plan?

A business plan provides a snapshot of your vacation rental business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Vacation Rental Agency

If you’re looking to start a vacation rental business or grow your existing vacation rental company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your vacation rental business to improve your chances of success. Your vacation rental business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Vacation Rental Businesses

With regards to funding, the main sources of funding for a vacation rental business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for vacation rental companies.

Finish Your Business Plan Today!

How to write a business plan for a vacation rental business.

If you want to start a vacation rental business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your vacation rental business plan.

Executive Summary

Your executive summary provides an introduction to your vacation rental property business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of vacation rental business you are running and the status. For example, are you a startup, do you have a vacation rental business that you would like to grow, or are you operating a chain of vacation rental businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the vacation rental industry.
• Discuss the type of vacation rental business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of vacation rental business you are operating.

For example, you might specialize in one of the following types of vacation rental businesses:

• AirBnB rentals: This type of business uses a platform such as AirBnB to market and rent out their vacation home properties.
• Luxury rentals: This type of business specializes in high-end vacation rentals of homes, condos, or villas.
• Beach house rentals: This type of business rents houses or condos for popular tourist destinations along the beach.
• Cabin rentals: This type of business specializes in renting out cabins for tourists going camping, skiing, or looking for a more secluded getaway.

In addition to explaining the type of vacation rental business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of rentals booked, reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the vacation rental industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the vacation rental industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your vacation rental business plan:

• How big is the vacation rental industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your vacation rental business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your vacation rental business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of vacation rental business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Vacation Rental Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other vacation rental businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other options for vacationers such as hotels, resorts, and RV parks. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of vacation rental business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to book your rentals?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a vacation rental business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of vacation rental company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide amenities with your rentals such as food service, transportation, or housekeeping services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your vacation rental company. Document where your company is situated and mention how the site will impact your success. For example, is your vacation rental business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your vacation rental marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your vacation rental business, including answering calls, booking rentals, billing clients and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth rental, or when you hope to reach $X in revenue. It could also be when you expect to expand your vacation rental business to a new city.  

Management Team

To demonstrate your vacation rental business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing vacation rental businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a vacation rental business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you keep an inventory of 10 vacation rental homes, and will you charge higher prices during peak seasons? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your vacation rental business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vacation rental business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of amenities and tourist attractions near your rentals.  

Writing a business plan for your vacation rental business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the vacation rental industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful vacation rental business.  

Vacation Rental Business Plan FAQs

What is the easiest way to complete my vacation rental business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your vacation rental business plan (or short term rental business plan).

How Do You Start a Vacation Rental Business?

Starting a vacation rental business is easy with these 14 steps:

• Choose the Name for Your Vacation Rental Business
• Create Your Vacation Rental Business Plan
• Choose the Legal Structure for Your Vacation Rental Business
• Secure Startup Funding for Vacation Rental Business (If Needed)
• Secure a Location for Your Business
• Register Your Vacation Rental Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Vacation Rental Business
• Buy or Lease the Right Vacation Rental Business Equipment
• Develop Your Vacation Rental Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Vacation Rental Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Vacation Rental business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business planning advisors can create your business plan for you.

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BUSINESS PLAN FOR HOLIDAY LET: Best 2023 Guide (Updated)

• by Folakemi Adegbaju
• August 10, 2023
• No comments
• 8 minute read

Table of Contents Hide

Why do you need a business plan for your holiday let, #1. executive summary, #2. industry analysis, #3. competitive analysis, #4. customer analysis, #5. management team, #6. operations plan, #7. marketing plan, #8. financial plan, #9. appendix, free holiday let business plan template, how profitable is holiday lets, what do i need to run a holiday let, how do you make a successful holiday let, is a holiday let considered a business, is buy-to-let worth it in 2023, what is the average occupancy for holiday lets, how much can you make from a holiday home in the uk, can you make money from holiday lodges, final thoughts, do i need a business account for a holiday let, do you pay tax on holiday lets, what expenses can i claim on a holiday let.

The decision to invest in a holiday let is not one that is made quickly. Numerous considerations should be made before making your final decision regarding whether to launch a business in this expanding sector. The most important thing to consider is a holiday let business plan.  It aids in the formulation of your overall business plan for successfully managing a holiday let. You can also use it to determine risks and success prospects. Also, it is a helpful tool for you to check your progress and remind yourself of your business objectives. Read further to get more knowledge about what a holiday let business plan is and how to write one.

Download our free holiday let business plan template .

What is a holiday let business plan.

Your holiday let business plan is a comprehensive set of guidelines, objectives, and frameworks that will guide your decision-making for the present and future of your new company. 

The holiday let business plan will be a great tool to look back to repeatedly to ensure that you are moving on the correct path, as well as assist you to establish the approach you will use to operate your organisation. You can get our holiday let business plan template to help write your holiday let business plan swiftly.

Who wouldn’t be eager to get started as soon as they purchased their houses as holiday let? Any vacancy or downtime on the property translates into additional money leaving your wallet. But before you get in headfirst, remember that the holiday let business plan is what will guarantee you optimize your earnings. With a strong holiday let plan, you can recover the original vacancy costs tenfold.

A business plan for your holiday let is what will ensure that, in addition to making money, you are on the right track, achieving your objectives, and properly gauging your success. For instance, without a business plan for a holiday let in place, how can you be sure that what you are spending isn’t too high or that your average daily rate isn’t too low? This plan will assist you in laying out the foundation of your business and ensuring that you are establishing measurable goals to determine success and profitability.

How to Write a Holiday Let Business Plan

Knowing how to write a proper holiday let business is an extra bonus when you’re preparing to get a holiday let business plan for your holiday let business. We’ve listed below some steps you need to take when writing your holiday let business plan.

Here are the steps:

Your executive summary is just a few concise phrases that can effectively summarise your holiday let business and contain all of the key details you want to convey to potential customers. This is done so that anyone reading your plan will be able to quickly understand what your business includes.

It could be simpler to start by addressing the infamous five Ws: who? what? Where? When? Why? By doing this, you’ll be able to take in the important information without worrying that you’re forgetting something .

Your business management strategy must be competitive and strategic if you want to succeed in the holiday let business sector. By highlighting some salient details regarding current trends and expectations, you can use this section to introduce the reader to the environment of the industry you are entering.

One method for doing this is to do an industry analysis, which entails assessing competing companies in the same niche. This will enable you to develop a winning business plan and ensure that you are a successful business owner. Knowledge truly is power, after all!

A part of your holiday let business plan should include researching your competitors in addition to concentrating on your own holiday let business. Find your direct competitors on the market, then research them to determine how to grow your company. Similar in concept to industry analysis, competitive analysis is done with an emphasis on your immediate competitors rather than the industry as a whole.

A customer analysis is the analysis of your target customer. You may operate a profitable holiday let business by understanding your target market and what they want and need. In this section, you’ll outline your target market’s characteristics, including the kinds of visitors your company already serves or intends to serve.

You should develop several in-depth buyer personas depending on the kinds of guests you expect to attract for your business plan. Later on, having a full profile of your ideal customer, complete with details on anything from their age to their income, will help you expand your business. Consider using a fake identity while constructing the perfect guest profile. Give the person a name, age, profession, and other details so they can precisely target the right kind of visitor.

You can use these guest profiles repeatedly to learn how to increase bookings in all facets of your business. With the help of thorough customer analysis, you can predict what your visitors will do and what they will like and dislike about your holiday let.

A solid management team is crucial to proving the viability of your holiday let business. It’s an important aspect of your holiday let business plan. Draw attention to your key players’ backgrounds by highlighting the knowledge and expertise that demonstrate their capacity to expand a business.

Ideally, you and/or your team members have firsthand knowledge of managing a holiday let. If so, emphasise your experience and knowledge. Highlight any experience you believe will assist your firm in succeeding, but do so as well.

Your employment practices, corporate expectations, and how you’ll manage your business’s daily operations will all be influenced by the operations plan. Managing all the financial aspects of your properties, including taxes, insurance, bookings, payment processing, maintenance, and related administrative activities, is part of your daily tasks. Consider how your present arrangement has performed thus far.

Describe the tactics you have chosen when focusing on your main markets to generate bookings. Consider both online and offline marketing, along with any external campaigns or promotions you intend to run.

Your marketing plan essentially consists of how you will market to consumers and how you will bring in revenue. Your previously constructed buyer persona will be quite helpful at this point. Knowing the audience you’re attempting to reach will help you determine which websites they frequent and the best marketing strategy to apply.

You can employ a variety of offline marketing techniques, such as posting fliers or business cards at nearby tourist destinations, in addition to online ones like Google Ads and listing your house on various holiday let websites.

You should discuss your company’s financial history in this section. You can accomplish this by outlining all of your earlier accomplishments and how they contributed to the current status of your company. It’s a must to make a thorough financial plan and estimates. Working with an accountant to complete this section of the vacation rental business plan is a smart option. This will guarantee that your documents adhere to the requirements for financial reporting that investors need.

Your financial plan should include a 12-month profit and loss projection, a 5-year financial growth plan, a cash flow projection, an estimated balance sheet of expenditures for your business, and a cost analysis.

You ought to include more helpful information besides financial records. Indicate everything that can support the argument that your vacation rental business plan is viable.

Download our free holiday let plan template.

The main goal of this free template for a holiday let business plan is to inform you of some additional vital elements you must take into account if you want to run a profitable rental company. In addition to writing a holiday let business plan, you must utilise this free template as much as possible to see immediate results in your firm.

All you have to do is modify this template checklist and complete the tasks that still need to be done.

• Research your business market
• Decide your business model
• Choose a location
• Get a business plan
• Choose the equipment you will need 
• Decide the legal form for your holiday let
• Prepare a marketing plan
• Secure funds to launch your business

Yes! Possessing a holiday let might be a terrific endeavor and financially beneficial. Whether it’s to make money, add to retirement funds, or just pay the expenses of having a second home. However, it won’t be profitable until you approach it like any other prosperous business.

The description ought to provide prospective visitors with all the information they require, such as directions to the holiday let, its location, and its amenities. Remember that your holiday let must present itself attractively overall and that the photos are what will ultimately sell it.

Simple precautions to take into account include having enough toilet paper, cleaning supplies, seats for all visitors, and even a variety of extra light bulbs. These seemingly unimportant details, however, will have an impact on how your guests perceive your holiday let.

Positively, if the requirements of the holiday let guidelines are satisfied, a self-catering holiday let may be considered a trading business. Such properties frequently meet the requirements for small business rate relief, which exempts owners from paying business rates.

If you do not have at least 30% left over after operating costs, it is not worthwhile to consider being a landlord. You’ll need to budget money for renovations and repairs. In the uncommon event that a tenant damages your property renovations may be necessary.

Remember that the typical occupancy rate is roughly 21 weeks. However, some more well-liked places have an occupancy rate of about 24 weeks.

Your income potential is increased by the much higher weekly rate charged for holiday let. The typical holiday let owner earns about £30,000 annually.

People will enjoy a vacation lodge as much as you do if it’s in a stunning location and has all the conveniences of home. The lodge can be easily rented out between your visits to make money.

You will be able to obtain the financing you require from lenders or investors if you have a well-thought-out holiday let business plan. Also, developing a workable strategic plan for your holiday let business will aid in identifying potential hazards prior to outside investment. You can develop a professional plan using the above basic approach, but for an even better experience, you can also use our ready-to-use holiday let business plan.

Maintaining an accurate record of the revenue and expenses associated with your holiday let is crucial. In light of this, opening a business bank account might be wise. An organization’s bank account functions similarly to a person’s.

Profits from your vacation rental, like those from any business, will be subject to income tax. However, there are several legal ways to lower your income tax lawfully. You will have to pay interest if you have a mortgage on your FHL.

For furnished holiday let, the entire mortgage interest can be deducted. There are maintenance fees for the vacation rental, such as cleaning and gardening. including insurance for vacation rentals, accounting costs, advertising costs, platform fees for use of internet services, and dues for landlord/property association membership.

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How to Create a Vacation Rental Business Plan + Free Template

Starting a vacation rental business is like a big road trip. Wondering how?

Like in road trips, you need to have a plan—where you’ll stay, what locations you’ll visit, and more; you need a detailed vacation rental business plan to start and make your business a success.

The vacation rentals market is projected to reach $100.20B in 2024, so you’ve made the right choice. now all about writing an investment-ready business plan.

Need help writing? We’ll help.

This vacation rental business plan template will be your reference point, while the guide will help write sections of your plan.

Sounds good? Let’s get started

What is a Vacation Rental Business Plan?

A business plan for vacation rental or any other business is a document that details a company’s goals and how they plan on achieving them. Whether you’re a startup or have an established company, you need a business plan.

Startups can utilize a well-prepared business plan to win potential investors and lenders. In contrast, established businesses can use it to optimize their business operations, track their business goals, and ensure they’re on track and heading in the right direction.

Now that you know what is a business plan and how it can help, let’s head to understanding things you must consider before you start writing your plan.

Things to Consider Before Writing a Vacation Rental Business Plan

So that we’ve already covered the industry outlook part, let’s discuss things you should consider before you write your vacation rental business plan.

1. Understand the vacation rental market

You must understand the market you plan to enter, don’t you? First things first, start researching the vacation rental market.

Your market research may involve gathering and analyzing information about the industry, regulatory environment, market trends, target customers, and market trends.

Understanding the vacation rental market helps you identify your target audience, understand the competitive landscape, key market trends, and consumer demands, and help set competitive yet profitable pricing.

2. Know your competitors

Market research will help you get the information you need about your competitors. Still, a thorough competitor analysis is required to truly understand and know your competition and put it to good use.

How to do it? Identify existing vacation rental properties and analyze their pricing, customer reviews, marketing strategies, seasonal variations, etc.

Knowing your competition will help you identify or develop unique selling points that differentiate your business from others.

3. Get the necessary licenses and permits

Every business has specific legal, tax, safety, zoning, and countless other regulations. Keeping up with regulatory requirements and licensing & permitting requirements can save you time and trouble in the future.

When your business is ready to grow and scale, you want to avoid getting stuck in some paperwork, right? That’s why getting over with the licensing paperwork beforehand makes total sense for seamless business planning and operations.

4. Decide your service offerings

This one’s a no-brainer. Although you’ve decided to start a vacation rental business, there’s more to it regarding products and services.

Finalizing your services helps you get clarity in your business concept, pricing strategy, revenue streams, marketing and branding, and operations planning.

In short, it’s a must for precise business and financial planning.

Now that we discussed the pre-preparations, let’s check out and understand the vacation rental business plan outline.

Vacation Rental Business Plan Outline

Need help planning your rental business plan structure? Look no further. Here’s a detailed outline for a comprehensive rental business plan. You may use it as it is to outline or structure your plan.

Here. Check out this detailed business plan outline to get a high-level overview of your business plan. We will discuss its sections in detail as we follow, so do not worry!

• Mission Statement
• Vision Statement
• Customer Focus
• Success Factors
• 3 Year profit forecast
• Business Structure
• Startup Cost
• Funding Required
• Products and Services
• Market Trends
• Target Market
• SWOT Analysis
• Phone Prospecting
• Public Relations
• Advertising
• Ongoing Customer Communications
• Pricing Strategy
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

Now, let’s understand how you would write each business plan section in detail.

1. Executive Summary

The executive summary would be the first section for your investors to read, but you will write it at the end when your entire plan is ready.

Reason? It is the first section of your plan that summarizes the entire plan for your readers. However, writing your plan summary would be more convenient when you have the entire doc ready.

Your executive summary may include details about your business concept, types of rental properties, your target customers, competitive landscape and USPs, market opportunity, and financial highlights.

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2. Company Overview

We will briefly cover the company overview in the executive summary, but this is your opportunity to present your business concept in detail.

Provide a detailed company overview, starting from business concept and location, followed by vision, mission, legal structure, company founders, and future goals.

This section is critical for readers to understand your business, so make sure it is engaging, to the point, and accurately presents your business.

3. Market Analysis

We talked about market research and analysis earlier in this article, and we’ll now put the research we conducted to use.

Your market analysis section should provide a thorough understanding of your target market, market size & growth potential, competitors, key market trends, and regulatory environment.

Remember, the core purpose of this section is to provide readers with an understanding of the vacation rental industry, competitive landscape, and industry-specific factors affecting business success.

4. Service Offerings

Vacation rental businesses offer various services like property rental, cleaning and maintenance, entertainment, and luxury amenities. This is the section where you should mention all your service offerings.

Here are some of the most common vacation rental service offerings:

• Property rental—apartments, villas, cottages, etc.
• Rooms rental—individual rooms within a larger property.
• Special event hosting
• Local recommendations & Transportation
• Cleaning and maintenance

5. Operations Plan

The operations plan section of your plan provides insights into your day-to-day business operations.

For instance, consider including details like how many employees you plan to hire, how will you handle administrative duties, and keep track of inventory.

Consider asking yourself some of these questions to plan this section:

• Do I need to hire employees?
• Who will be responsible for managing and tracking inventory?
• What would be the booking and registration process?
• Can I handle the business finances or I’d need an accountant?

Answering such questions will help you draft an operational plan with precision.

6. Marketing Plan

This section will provide strategies you’ve decided to market or promote your business. Your strategies may include online and offline marketing or external promotional campaigns.

For instance, your online marketing strategies may include generating bookings through travel websites, personal vacation rental sites, and Google Ads. In contrast, the offline strategies would consist of printing and leaving flyers in local tourist offices, collaborating with local businesses, and providing a referral program.

The marketing plan helps your investors understand how you’ll promote your business and generate bookings, making it essential to consider.

7. Management Team

Strong management is critical to your vacation rental’s success. And, as the name suggests, you would introduce your management team in this section. Introduce vacation rental founders, key executives, the general manager, and the rest of the management.

Explain how each member fits and what responsibilities they will take care of. Consider including a resume-styled summary for each person in your vacation rental business plan.

8. Financial Plan

The financial plan is the most essential section of your vacation rental plan. Generally, your financial plan section should provide a summary of your business’s financial projections for the first few years.

Following are some of the critical statements and reports you should consider including in your financial plan:

• Profit and loss statement
• Balance sheet
• Cash flow statement
• Break-even analysis

Besides these financial statements, you should also include your financial requirements, startup costs, scenario analysis, and revenue & sales forecasts.

Download Sample Vacation Rental Business Plan

Do a business plan outline but need a sample plan to get started? Here you go, download our sample vacation rental business plan pdf , import data directly into the Upmetrics editor, and start writing your plan.

This ultimate template with step-by-step guidance helps entrepreneurs create investment-ready business plans to secure funding, business loans, and government grants and can help you as well.

The Quickest Way to turn a Business Idea into a Business Plan

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Start Preparing Your Business Plan With Upmetrics

Drafting a comprehensive business plan that draws investors in is no easy feat—it needs some serious work. But, you must take the first step and get ahead of your competitors. Upmetrics could be a great companion in the process.

Upmetrics is a modern and AI-powered business plan software that helps new-age entrepreneurs create comprehensive business plans in no time.

From step-by-step guidance to a financial forecasting tool and business plan builder, Upmetrics has everything to make business planning easier for you.

So what are you waiting for? Start preparing your vacation rental business.

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Frequently asked questions, why do you need a vacation rental business plan.

Having a comprehensive business plan is a must to ensure vacation rental business success. It will be your guide in starting, operating, and marketing. Furthermore, it also plays a crucial role in securing funding for your business.

Is starting a vacation rental business profitable?

The leisure and hospitality industry is recovering and expected to grow at a compound annual growth rate of 4.7% from 2023 to 2030. So, starting a vacation rental business would make a profitable investment.

Furthermore, a 10-20% return on investment from your vacation rental property is considered a good profit margin.

What is the easiest way to write a vacation rental business plan?

Using Upmetrics’ business plan template is the easiest way to write a business plan. Simply export the template into the editor and update it according to your requirements. You can easily finish your plan in just a few hours or less with this AI-powered business planning solution .

What to include in your vacation rental business plan?

These are the key components your vacation rental business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Service offerings
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

How is a vacation rental business plan template helpful?

Having a vacation rental business plan template can be incredibly helpful in writing a plan. You can use this as a reference point while writing instead of starting from scratch. All you need to do is—export it to the Upmetrics editor and start making the necessary updates.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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The Complete Guide to Writing a Vacation Rental Business Plan [+Free Template]

A well-thought-out vacation rental business plan is key to upgrading your business and ensuring your success as a host. As you are starting a vacation rental business or increasing the number of Airbnb properties in your possession, such a plan will help you stay on top of all your business requirements.

With a thoroughly detailed business plan, you will be able to secure the funds from lenders or investors that you need to develop your business. Furthermore, creating a viable strategic plan for your vacation rental business will help to identify potential risks before others start investing in your business. 

What Is a Vacation Rental Business Plan? 

A business plan is a set of rules and practices, frameworks, and goals that you can rely on when you need to make decisions for your business. The most valuable contribution comes from doing the groundwork. Thus, it is of great importance for your business success to have an elaborate business plan on hand. 

It helps you define your complete business strategy for running a successful vacation home rental. It also helps you identify risks and chances for success. Furthermore, it is a useful resource to remind yourself of your business goals and ensure you’re going in the right direction.

What to Include in Your Vacation Rental Business Plan? 

For those who are just starting out , it can be a bit confusing to identify what needs to be included in a vacation rental business plan. We composed the following list to guide you through the whole process. Discover 12 essentials that every well-thought-out business plan should have.

Business Goals

Business goals are an important part of your vacation rental business plan. Specify your goals and key milestones to draw up an action plan. This will help you identify steps you need to take as well as track the progress of your business and keep an eye on the ultimate goal.

Make your goals specific by writing them down in detail. If they are too vague, it will be much harder for you to achieve them. It would be good to create some sort of a deadline, but be sure to give yourself enough time to accomplish what you’ve planned.

The following are great examples of milestones you can set:

• The amount of money you want to make each month.
• The number of guests you wish to host during each of the four quarters.
• The number of returning guests you wish to host each year.

The Executive Summary

The executive summary outlines the history of your vacation rental business, including your prior successes and accomplishments. With it, you can cover future goals for your business, as well as include information about your current properties, employees, and third-party vendors.

When potential lenders or investors read your business executive summary, they’ll be able to know what your business has to offer and why it is worth investing in. The following suggestions will help you outline what information to include.

Property location:

• Is it located by the seaside?
• Is it nestled in the city center within a short walking distance from tourist attractions?
• Is it located in the countryside in a secluded area?

Property type:

• Is your rental family-friendly (i.e. made for family holidays)?
• Is it small and intended to cater to business travelers on short trips?
• Is it large and located nearby an attractive beach – a perfect summer rental?

Target audience:

• Do you want to attract families?
• Is your rental perfect for couples?
• Is it suitable for large groups of people?

Peak rental season and weekdays:

• Is it designed as a summer or winter rental?
• Is it suitable for all-year-round renting?
• Are there any festivals or events making it a desirable place for certain dates in the year?
• Is it intended for business people on business trips?

Your Value Proposition

The company’s value proposition spells out the unique selling points (USPs) of the business. It provides an in-depth analysis of the unique offerings that your business brings to the rental market.

You should find characteristics that make your vacation rental stand out. By knowing your strengths, you will be able to show them in the best light and, thus, attract more guests. Find out how your property is different from the competitors’ properties by asking yourself the following questions:

• Does my property have a unique/convenient location? For example, is it close to the beach or a famous landmark? Does it offer access to such facilities such as public transport, shopping centers, grocery stores, etc.?
• Do I have any unique amenities, such as a swimming pool, hot tub, free parking, etc. on offer?
• Can I offer any additional services, such as breakfast, transportation to the airport, or bike rental?
• Does my property stand out in terms of design? Has it recently been renovated?
• Is my property fairly priced?

Doing thorough research on your key selling points will help you position your property in the right way. Moreover, you’ll be able to come up with a couple of more ideas on how to improve your offerings to achieve maximum occupancy rate and profitability in your business.

Management Structure for Your Vacation Rental Business

This section of your vacation rental business plan should explain your business management structure. A sound management structure will improve productivity and ensure that all members of your organization can achieve their true potential.

Is the structure of your company, as a partnership or ownership by a single individual, living up to its potential? Spell out the management structure of your business in its current state, including any property management services you use.

Operations Plan

The operations plan will help you make decisions regarding hiring, company standards, and the way you will keep up with the day-to-day activities of running your business.

Daily tasks include managing all the business aspects of your properties, such as taxes , insurance, reservations, payment processing, maintenance, and related administrative tasks.

Think about how your current setup has worked so far… Are there any improvements that can be made as you expand your business?

At this juncture, you’ll also need to decide what role you want to play in your vacation rental business in the future. Do you want to continue to play a key role or would you like to bring in additional staff to help spread out the responsibilities?

If you manage multiple properties, you might want to outsource some of your daily operations. Here are the areas you might consider to get assistance with:

• Managing reservations, updating calendars
• Cleaning and laundry
• Maintenance
• Marketing and advertising
• Property management (meeting guests, dealing with complaints, etc.)

Financial Plan

In this section, you should cover the financial history of your business. You can do this by discussing all of your prior successes and how they have led to the state of your business today. You will also need to create a detailed financial plan and projections .

Your financial plan should include

• 12-month profit and loss projection
• 5-year financial growth plan
• Cash flow projection
• Estimated balance sheet of expenditures for your business
• Cost analysis

For this part of the vacation rental business plan, it is a good idea to work with an accountant. This will ensure that your documents meet the financial reporting standards required by commercial lenders.

Customer Analysis

A customer analysis represents a study of your ideal guest. Knowing your audience and what they want and need will help you run a successful vacation rental business. Here, you’ll describe your target customers, including the types of Airbnb guests that your business attracts or you plan to attract.

Within your business plan, you should create different, detailed buyer personas based on the type of guests, or the ones you aim to attract. Creating such a detailed profile of your ideal guest (including info about their age to their income) will help you grow your business later on.

When creating an ideal guest profile, you should think of a fictional persona. Give him or her a name and age, a vocation, etc. to help know exactly what type of guests to target and how.

These guest profiles you can use time after time, in all aspects of your business to figure out how to get more bookings . With a good customer analysis, you will be able to understand what to expect from your guests, what they will like and dislike about your rental property.

Here’s an example of how to create an ideal guest persona:

• Give him/her a name
• Think about his/her profession
• How old is he/she?
• Does he/she have a family?

Let’s say your ideal guest is John Smith, an interior designer in his early forties. He is a father of three and often travels with his family. This means that your rental should be family-friendly with a lot of entertainment options for kids. Think of all the amenities such a guest will look for.

Also, your rental should be childproof and free of any sort of clutter. Ensure enough empty space inside and put all the breakable items on higher shelves to avoid damage during the kids’ playtime.

Moreover, since he has a big family, you should also be sure that your rental has enough space to accommodate five people.

Competition Analysis

Carrying out competitor research is of great importance, especially for vacation rental businesses. You need to know who the other local short-term rental owners are. You should find out how they do their work, attract guests, what their pricing strategy is, and whether there are any special services or amenities that they offer, etc.

Do thorough research of the market for vacation rentals to find your direct competitors and analyze them. A competitor analysis will help you understand how your business can thrive and help you win bookings over your competitors. All this will secure your position in the short-term rental industry. Here are some suggestions to help you get started.

• How much are your competitors charging per night?

This will help you set up the right prices for your area and ensure more bookings. Guests are more likely to choose affordable rentals. Thus, fair prices will encourage more reservations.

• Do your competitors offer additional services?

If not, this can be a great opportunity for you to take action and offer additional services for guests. For example, transportation services can be a selling point for many guests who want to avoid the hassle of navigating a new city.

• Do they offer a diversity of amenities and what are they?

By knowing what your competitors offer, you can go the extra mile and provide even more unique amenities to ensure the highest level of guest satisfaction.

Marketing Analysis and Strategy

Your marketing strategy describes the tactics that you will use to achieve bookings and increase the occupancy rate in the future. Use this section of your vacation rental business plan to outline in detail which marketing techniques and tools you are going to implement to promote your property .

Your marketing plan should cover strategies for marketing your vacation rental property to the right audience. It should be diverse and include all relevant methods, including both online and offline marketing. Asking yourself the following questions will help you create a thorough marketing strategy.

• On which listing sites will you place your property?
• What social media platforms will you use for promotion?
• Will you invest in paid advertising?
• Will you design and print flyers for local tourist boards?
• Will you have business cards?
• Will you take advantage of email communication with your past guests?

Also, make sure to create a distribution plan for successful advertising. It should cover the costs for chosen methods and outline how you will handle channel management.

Moreover, the buyer personas you’ve created can help you with building a quality marketing and distribution strategy. Knowing the exact type of guests you are targeting helps you adjust your marketing strategy and market your vacation rental in a way that resonates with them.

In addition to financial documents, you should include more useful information. Indicate anything that can help build the case for the viability of your vacation rental business plan. Here are some ideas for documents to include:

• Resumes (your own and of your key employees);
• Permits to demonstrate your willingness to comply with the latest regulations regarding short-term rentals in the jurisdictions where your business operates;
• Contracts with third-party vendors for property management services;
• Vacation rental industry studies that you’ve cited in your business plan;
• Letters of support

Making plans for the future

The vacation rental industry allows a lot of room for change and growth. Thus, it is essential to think about the future of your business and what you can do to expand it further.

Once you’ve established profitable business and completed your goals, you should have a general idea of what the next steps are. The following are examples of goals you may want to include in your business plan for the future:

• Increasing the occupancy rate
• Minimizing expenses
• Raising net income
• Adding more properties
• Offering additional services
• Providing more amenities
• Optimizing your daily workflow

Once you complete this set of goals, you should think of the next set to secure progress.

Scaling your business with smart investments

As with all other businesses, investing is essential for your vacation rental business growth. The more effort, time, and money you invest in your business, the more revenue you will generate. Your hard work will pay off very quickly, resulting in a large number of returning guests and increased income.

Investing in digital tools and management software will help you stay in full control of your business at all times. You will be able to automate the key aspects of your business for more efficient management.

Vacation rental software, such as iGMS , can help you put your business on autopilot. By using advanced smart tools, you can streamline your routine operations and manage all your vacation rental properties across various channels.

What’s more, you will be able to reduce costs as iGMS allows you to manage your business without expanding your team.

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How to Write Up an Airbnb Business Plan: Free PDF Template

Having a well-crafted Airbnb business plan is the best way to set your business up for success from the get-go. It outlines your business goals, operations plan, and the timeline for accomplishing all of this.

After all, you don’t want to be flying blind when it comes to the vacation rental industry.

Try not to get too overwhelmed: it’s easier to write a business plan than you might think. In this article, we explain why having a business plan for Airbnb hosting is important, offer best practices for writing an effective one, and provide a free Airbnb business plan template to download.

Don’t see the form to download our Airbnb Business Plan? Click here .

First, what is an Airbnb business plan?

An Airbnb business plan is a living document that outlines the direction you want your business to go in and strategies for getting it there. It will include details such as your target market and customers, financial plan, and goals and milestones.

You’ll be referring to your business plan often as you work to open your Airbnb , so be sure to be as detailed as possible.

Airbnb business proposal vs. business plan

We sometimes see people get confused between Airbnb proposals and business plans.

To be clear, a business proposal is a document that explains how a company’s product or service can meet a specific customer’s needs. Its goal is to attract customers.

You might need an Airbnb business proposal if you were, say, trying to get investors for your Airbnb business. However, chances are that what you’re really looking for is a business plan.

Why do you need a business plan for Airbnb hosting?

A well-thought-out business plan for Airbnb is the roadmap you’ll use to steer your business into the future. Here are just a few reasons why you should consider writing a business plan for your short-term rental property.

Helps you meet your goals

It’s easy to get sidetracked while trying to grow your business.

Of course, entertaining new ideas is never a bad thing. But having your original vision in writing

will ensure you don’t deviate too far from what you truly want to achieve. It motivates you to move forward and gives you something to measure progress against, too.

Prompts you to make important decisions

You’re going to have to reflect on your operations strategy, competition, future guests, and more when you sit down to write your business plan.

You may find some of the difficult decisions you’ve been putting off coming up in this process. Now is the time to face them head-on.

Don’t sweat this too much. Remember that you can always come back to your business plan and adjust as you go. It’s an ever-evolving document!

Gives you the framework to communicate your business to others

We all like to think we can handle things on our own. However, the time will come when you’ll need help to run your business, be it from a business partner, investor, or assistant.

When that time comes, you need to be able to clearly and confidently communicate what you’re doing and where your business is headed. It wouldn’t make any sense to order an Uber and not tell the driver where to go, right?

Not to mention that an Airbnb business plan saves you the headache of having to explain every nuance of the business to the person you’re bringing on board. Forward the document and let it speak for itself.

How to write a business plan for Airbnb: best practices

Now you know why having a business plan for Airbnb hosting is so important. But how do you go about writing one?

Grab a cup of coffee and pull up a chair. Let’s go over some best practices.

Brainstorm a mission statement

Contrary to popular belief, mission statements are not reserved for major corporations. Before you even start writing the business plan itself, consider writing an Airbnb mission statement for your business.

A mission statement is simply a concise explanation of the business.

Think about how you would explain what you’re doing to a friend at a cocktail party without losing their attention. What vision do you have for the business? Why is this important to you? What value do you provide to your customers?

Take some time to reflect, but keep in mind that mission statements are meant to be quick and to the point.

Airbnb mission statement examples

Here are some examples of Airbnb mission statements for inspiration:

• “The Cozy Cottage provides budget-friendly accommodations to travelers seeking to enjoy the natural beauty of our neighboring national park.”
• “The Little Apple is an eco-conscious studio that gives guests unparalleled access to downtown Manhattan at competitive rates.”
• “The Malibu Oasis offers the ultimate in luxury with a beachfront property, high-end amenities, and services tailored to our guests’ specific needs.”

Recognize your audience

Who will be reading your business plan?

The language you would use with one audience may not be appropriate for another. You might even consider writing different versions of your business plan for different audiences.

For example, a version geared toward investors might use more formal terminology. A version created for a future business partner, on the other hand, might be more casual.

Tap into the power of self-reflection

Starting an Airbnb business is a huge undertaking! Making sure you are ready to take it on is just as important as having a sound business plan.

Take inventory of what skills you already bring to the table and what things you will have to learn along the way. Are there things you should outsource to lighten your load? Do you feel prepared to take the next step with your Airbnb business?

Acknowledge any uncertainties now before you get started. It’s a great way to be honest with yourself and boost your confidence!

Be realistic

Should you push yourself to think big? Absolutely!

Should you set unrealistic and unattainable business goals? Not so much.

It’s all about striking a balance between dreaming big and keeping your feet on the ground. Take into account anything that might go wrong so you aren’t blindsided later on.

What to include in your Airbnb business plan

When it comes to writing a business plan, Airbnb is just like any other business. That’s to say, there are certain things you absolutely must include!

Take a look at our list and stay tuned for our free downloadable business plan template for Airbnb.

Executive summary

An Airbnb executive summary consists of a short description of your Airbnb business. People should be able to read your executive summary and know, at a glance, what your business entails.

To begin, ask yourself the famous five Ws to ensure you cover all the key information:

• Who is my Airbnb for (groups of friends, families, couples, etc.)?
• What is it (family holiday home, beachside condo, bachelor pad, etc.)?
• When is it best to stay at my Airbnb (summer, winter, weekends, etc.)?
• Where is my Airbnb located?
• Why should guests book my property?

Once you have these answers, you can rewrite them into a suitable executive summary.

Operations plan

Your operations plan outlines how you are going to run your Airbnb on a day-to-day basis.

This is one of the most straightforward parts of your business plan. Chances are, you’ve already thought through most of the details.

Here are just a few helpful prompts in case you get stuck:

• Am I going to hire any staff or run the business myself?
• How will I manage inventory ?
• Who is going to clean the rentals between guests?
• Do I need to hire an accountant to manage my finances?
• Who will deal with bookings and customer complaints ?

Business goals

You broadly detailed where your business is going with your executive summary. Now, you need to further solidify your vision in your goals section.

Are you satisfied with a couple of bookings a month? Or are you expecting a full reservation calendar by the end of the year? You’ll need to set goals to help pin this down.

It might sound elementary, but setting S.M.A.R.T. goals will help your business make progress. Is your business goal specific, measurable, attainable, relevant, and timely ?

Setting good goals is the basis for any successful Airbnb business plan.

Unique selling points

As with any business, you’ll need to detail the unique selling points (USPs) your Airbnb will bring to the existing market. That is, why are customers going to choose your Airbnb over the competition?

Thankfully, finding your USPs is much easier than you might think. Simply analyze your business and consider how your Airbnb provides a better guest experience than other properties in your area. Ask questions such as:

• Is it better than others because of its location?
• Is the price of your accommodation better?
• Are the interiors of your property different or better than the rest?

After all, once you are confident in your strengths, your guests will be, too!

Target customers

Your guests are how you are ultimately going to make your money. So, it’s incredibly important to understand and target them properly.

This starts with creating buyer personas to outline the types of guests you want to attract. As profiles of your ideal customers, buyer personas should be as detailed as possible to help your business grow down the road.

When considering your ideal guests, ask yourself questions such as:

• What’s their name?
• What do they do for work?
• How old are they?
• Do they have a family?

Understanding and visualizing your ideal guests enables you to prepare for their specific needs and pain points.

For example, if you’re tailoring to young digital nomads , you’ll want to offer fast and reliable Wi-Fi, a designated work area, and suggestions for laptop-friendly cafes in the area. If your ideal guests are families with young children, on the other hand, you’ll want to make sure your property is child-safe .

Competitor analysis

It’s not all about your own business. No business plan is complete without some competitor research as well.

Take a look at the market to find your direct competitors (these are the properties that might win bookings over you). Then, analyze them to see how you can put your own Airbnb on top .

For example, ask:

• How much are my competitors charging per night?
• What standard of accommodation do they offer?
• Do they offer airport transfers/pickup services?
• Do they offer a wide range of amenities in the house?

Marketing plan

Explain which marketing strategies you will use to target your key markets and achieve bookings. Think about both offline and online marketing , as well as any campaigns or promotions you plan to run externally.

This is when the buyer personas you created earlier will come in handy. If you know the people you’re trying to target, you’ll know what type of marketing will be suitable for them.

Here are some questions that can help you sketch out your marketing plan:

• What methods of online marketing should I use?
• What methods of offline marketing should I use?
• Do I have a direct booking website ?
• Do I have business cards ?

Financial plan

How are you going to finance your Airbnb ? You’ve probably given this lots of thought by this point (or even stayed up at night stressing about it).

But now it’s time to get serious. Will you self-finance your Airbnb or take out a loan ? Is financing unnecessary because you’re simply renting out a spare bedroom?

These questions form your financial plan . As we all know, money doesn’t grow on trees—so you need to know where yours will be coming from. To that end, estimate your expenditures and projected income for the first five years.

So, what kind of information makes up a financial plan?

• Will I need to take out a loan?
• What will the interest rates be?
• Do I have savings I’m ready to invest into it?
• What level of monthly loan payments can I manage?

Milestones and goals

When you start any project—whether it’s going back to school, losing weight, or starting a business—tracking your progress is essential.

So, outline your plans and goals for your business, plus what key milestones will help you achieve these targets. You can refer back to this section later on to ensure you’re on the right track.

Here are some good milestones to use for your Airbnb business:

• How much do I want to make each month?
• How many guests do I want in the first quarter?
• What rate of growth do I want in my bookings year-over-year?
• How many returning clients do I want each year?

Mistakes to avoid when writing an Airbnb business plan

Like we mentioned above, your business plan is a living document. So, you don’t need to worry about making it perfect on the first try. And you will have to update it over time.

That being said, you’d do well to avoid these common mistakes the first time around.

Don’t be too vague

Avoid making big, vague claims that you can’t quantifiably measure. Claims like this will only make it harder to see where you’ve succeeded and where you can improve.

After all, the point of a business plan is to give your business a sense of direction. Your future self will thank you for being specific about your goals and plans.

Also, don’t be too specific

We know—we just told you the exact opposite. But hear us out.

If you get too specific in your plan, you don’t leave yourself very much wiggle room. Yes, you want to have a clear direction of where your business is going. But you don’t want to close yourself off to other possibilities.

Be firm about the destination (your business goals) but flexible about the journey (how you will achieve those goals). There’s a sweet spot in there somewhere.

Airbnb business plan example

Sometimes the easiest way to get started is to see examples of others’ work. We’re also providing an Airbnb business plan template you can follow below. But in case it helps, here’s a sample business plan for Airbnb, based on the fictional business of “the Cozy Cottage”:

• Executive summary: The Cozy Cottage is a cottage located in the small town of Green Meadows. The Cozy Cottage is perfect for couples and small families looking to enjoy the natural beauty of the greater Green Meadows area.
• Operations plan: I will be able to manage guest communications and turnover myself, as I am semi-retired and live on the property adjacent to the Cozy Cottage. I’ve contracted a local accountant to handle my finances.
• Business goals: We intend to have every weekend booked by the end of the year, and a full reservation calendar within six months of opening.
• Unique selling points: The Cozy Cottage’s location (equidistant between the historic downtown and the nearby national park) is especially attractive to visitors. The property also provides a fully stocked kitchen, making it ideal for longer stays.
• Target customers: The Cozy Cottage has one bedroom with a queen bed, as well as a sofa bed in the living room. The space’s size and offerings make it perfect for small families or couples.
• Competitor analysis: Green Meadows has only recently become a popular tourist destination, meaning that competition is still scarce. Most existing Airbnbs in the area have higher price points and cater to larger groups. We plan to differentiate ourselves by catering to smaller groups and offering similar amenities at lower prices.
• Marketing plan: Our initial marketing plan consists of tapping into Airbnb’s customer base, posting on Facebook and Instagram , and distributing print materials in local businesses .
• Financial plan: The property on which the Cozy Cottage sits is already paid off, as it was part of a family estate. The initial investment for furnishing , decorating, and stocking the Airbnb will come out of my personal savings. According to my projections, the Airbnb should be paying for itself within one year of opening.
• Milestones and goals: We hope to be booked every weekend by the end of the year and self-sustaining within one year of opening.

Your own business plan will likely be longer, much more detailed, and backed by real data. However, this Airbnb business plan sample should give you an idea of what your own document might look like.

Download our free Airbnb business plan template

We’ve created a free Airbnb business plan PDF that you can download and customize to get started. This business plan template for Airbnb was designed with three specific pain points in mind:

• Why do I need a business plan in the first place?
• What do I need to do before I can start creating my business plan?
• What should I include?

Fill in the form below to download our Airbnb business plan template free of charge!

Disclaimer: Lodgify is an Airbnb Preferred Software Partner. This post, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.

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Home » Sample Business Plans » Travel & Tourism

A Sample Vacation Rental Business Plan Template

A vacation rental company is a company that allows travelers to rent private properties for a short time. These rental properties are often located in vacation destinations and feature more benefits and greater flexibility than staying in a hotel.

Please note that some vacation rentals, particularly condominiums or apartments, offer many of the same services hotels offer their guests, e.g., front desk check-in, 24-hour maintenance, in-house housekeeping, and concierge service. The market size of the vacation rental industry in the United States reached 411.9 million U.S. dollars in 2020. The sector saw a 1.7 percent growth over the previous year’s size of 405.2 million U.S dollars.

Steps on How to Write a Vacation Rental Business Plan

Executive summary.

Red Roof® Vacation Rental Company, Inc. is a standard vacation rental company that will be located in Miami, Florida but with an active presence and network all across tourist cities in the United States. We have been able to secure all the necessary permits for our facilities.

Red Roof® Vacation Rental Company, Inc. will ensure that all our rental properties meet international standards. We want to build a business with a wide range of clientele base that cuts across people and businesses of different financial statuses.

We have CRM software that will enable us to manage a one-on-one relationship with our customers no matter how large they may grow. Jason Finney is the founder and CEO of Red Roof® Vacation Rental Company, Inc.

Company Profile

A. our products and services.

Red Roof® Vacation Rental Company, Inc. will rent out furnished apartments, houses, and professionally managed resort-condominium complexes temporarily to tourists as an alternative to a hotel. We will also offer our guests services such as front desk check-in, 24-hour maintenance, in-house housekeeping, and concierge service.

b. Nature of the Business

Our vacation rental company will operate essentially as a club where patrons can pick up a membership and pay their subscription monthly, quarterly, or annually. We will also open our business to one-off customers, especially tourists and visitors who are new to the industry.

c. The Industry

Red Roof® Vacation Rental Company, Inc. will operate in the travel and tourism industry.

d. Mission Statement

Our mission is to establish a world-class vacation rental company that will make available all kinds of apartments for vacation rental, including budget studio apartments, lavish, expensive private villas, furnished apartments, houses, and professionally managed resort-condominium complexes.

e. Vision Statement

Our vision is to be among the top 3 vacation rental companies in the United States of America.

f. Our Tagline (Slogan)

Red Roof® Vacation Rental Company, Inc. – Your Home Away from Home!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Red Roof® Vacation Rental Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Facility Manager
• Accountant/Cashier
• Marketing and Sales Officer
• Attendants (Staff like House Keepers, Concierge, Cook, and Hostess) (5)
• Security Officers

i. Ownership / Shareholder Structure and Board Members

• Jason Finney (Owner and Chairman / Chief Executive Officer) 56 Percent Shares
• Jolly Francis (Board Member) 14 Percent Shares
• Peter Boniface (Board Member) 10 Percent Shares
• Vincent Oscar (Board Member) 10 Percent Shares
• Roselin Adamson (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for vacation rental company
• Highly Experienced and Qualified Employees and Management
• A wide network of property owners spread across vacation cities
• Availability of all kinds of apartments in safe and secured locations and cities
• Excellent membership package

b. Weakness

• Budget limitations to build our apartments all across key vacation cities
• Inability to properly manage off-peak seasons such as bad winter
• A new business that will be competing with well-established vacation rental companies and hotels
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• Excellent location – Miami, Florida is a thriving market for tourism and vacation rental services.
• Increase in tourism and related activities in our location
• Online market, new services, new technology, and of course the starting of new markets.

i. How Big is the Industry?

The vacation rental industry is pretty big. It is expected to reach USD 6.8 billion in 2023 in the United States.

ii. Is the Industry Growing or Declining?

The vacation rental services industry is growing. Available data shows that the sector saw a 1.7 percent growth recently after the gradual recovery from the global coronavirus lockdown that caused a decline in the industry.

iii. What are the Future Trends in the Industry

The vacation rental services industry is changing, and players in the industry are improvising. No doubt, technology (smart apartments), safety, and social media will change the landscape of the vacation rental services industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no niche ideas in the vacation rental service line of business.

v. Can You Sell a Franchise of your Business in the Future?

Red Roof® Vacation Rental Company, Inc. has plans to sell franchises in the nearest future and we will target the United Kingdom, France, Bahamas, Egypt, United Arab Emirates (Dubai), Canada, and Australia.

• High maintenance cost
• Government regulations
• Liability problems
• Continuously changing consumer demands

i. Who are the Major Competitors?

• Marriott Homes & Villas.
• TurnKey Vacation Rentals.
• onefinestay
• Utah’s Best Vacation Rentals
• Roelens Vacation Rentals and Management
• Isle of Palms Vacation Rentals by Exclusive Properties
• Sykes Holiday Cottages
• The Travel Chapter
• Original Cottages
• iTrip Vacations
• My Property Host
• Happy Holiday Homes
• CorpHousing Group

ii. Is There a Franchise for Vacation Rental Company Business?

• Direct Booker
• SkyRun Vacation Rentals
• Book by Owner
• Property Management Inc.
• Pass the Keys.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Vacation Rental Company Business?

Yes, and zoning laws require vacation rental company operators to follow specific rules and regulations. Please note that in many communities, zoning laws require vacation rental companies to apply for a permit from the city.

This application process allows the city’s zoning department to determine whether the vacation rental company meets the zoning rules of the community. Permits also ensure that all vacation rental companies are properly licensed by county or state agencies.

In many counties, towns, and cities, local authorities attempt to regulate or ban vacation rentals after complaints from residents or competing lodging businesses. In the U.S., New York City, Chicago, and other cities have introduced restrictions on short-term rentals, though regulation is not always strictly enforced.

The City of Portland, for example, does not allow rentals of less than 30 days in residential zones but according to local vacation property managers such as Vacasa, the average guest stays 3-10 nights

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market age range covers people that are 18 years and above.

ii. Level of Educational

We don’t have any basic educational qualifications for those we are targeting; everyone is welcome to rent our apartments.

iii. Income Level

Anyone who can afford our rental fee or membership fee will be welcome to rent our apartments or pick up membership with our company.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will rent our vacation apartments.

v. Language

There is no restriction when it comes to the language spoken by the people that will rent our vacation apartment.

vi. Geographical Location

Anybody from any geographical location will be welcomed by our vacation rental company.

vii. Lifestyle

Red Roof® Vacation Rental Company, Inc. will not restrict any customer based on their lifestyle, culture, or race from renting our vacation apartments.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with Other Businesses in Your Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
• Including direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Pay-per-click (PPC).
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target demography.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Red Roof® Vacation Rental Company, Inc. will make sure it covers premium, skimming, economy or value and penetration. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, managed service providers, marketplaces, or value-added resellers—to market our vacation rental company (vacation apartments).

Red Roof® Vacation Rental Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

Red Roof® Vacation Rental Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Red Roof® Vacation Rental Company, Inc.  will make available to its clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

Red Roof® Vacation Rental Company, Inc. will operate a no refund policy hence we will not provide compensation for paid services (membership fees inclusive) in our vacation rental company.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us to provide excellent customer service to all our guests, it will help us to understand their needs, experiences, and pain points. We will make use of effective CRM software to be able to achieve this.

Operational Plan

We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include organizing regular promos at the local and state levels, providing electric vehicle charging amenities, and attracting international travel and tour agencies. These strategies will enable us to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Vacation Rental Company Business?

• The business is open for the day
• All the apartments are cleaned and ready to welcome guests
• Guests are welcomed and ushered to their apartments
• Administrative work is done concurrently
• The cooks and other staff members carry out their job description
• Stocking of toiletries, cooking ingredients, and other supplies is done
• Maintenance of the properties is carried out when due
• The facility is administratively closed for the day.

b. Production Process

There is no production process when it comes to the vacation rental business.

c. Service Procedure

When a vacation rental company is opened and everything is in place, they will either choose to welcome guests based on membership or open their doors to everybody.

d. The Supply Chain

Red Roof® Vacation Rental Company, Inc. will rely on trusted agents to supply some of the needed supplies in our city and we have been able to establish a business relationship with wholesale supplies.

e. Sources of Income

• Income from renting or vacation apartments.
• Membership fee
• Service charges for our added services.

Our Membership fee will cost $25,000 for the start and then a $15,000 annual fee from the subsequent year (VAT inclusive and subject to change). The average nightly price for vacation rentals is $58.

Financial Plan

A. amount needed to start your vacation rental company business.

Red Roof® Vacation Rental Company, Inc. would need an estimate of $6.5 million to successfully set up our vacation rental company in the United States of America. Please note that we will start with only five apartments (holiday villa, apartment, cottage, condominium, townhome).

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding, and Promotions – $5,000.
• Business Consultant Fee – $7,500.
• Insurance – $5,400.
• Properties (holiday villa, apartment, cottage, condominium, townhome) – $5 million
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $60,000
• Start-up inventory – $55,000
• Counter area equipment (countertop, sink, ice machine, etc.) – $29,500
• Store Equipment (cash register, security, ventilation, signage) – $14,750
• Website: $1,500
• Opening party: $10,000
• Miscellaneous: $20,000

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Red Roof® Vacation Rental Company, Inc. will build new facilities (holiday villa, apartment, cottage, condominium, townhome) for our vacation rental company and it will cost us $5.5 million.

d. What are the Ongoing Expenses for Running a Vacation rental company Business?

• Cost of stocking up supplies such as toiletries and food ingredients
• Cost of regular surveillance
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Maintenance of facility
• Salaries of employees

e. What is the Average Salary of your Staff?

• Chief Executive Officer (Owner) – $75,000 per year
• Facility Manager – $38,000 per year
• Accountant / Cashier – $35,0000
• Marketing and Sales Officer – $35,000 per year
• Attendants (Staff like House Keepers, Concierge, Cook, and Hostess) (5) – $35,000 per year
• Cleaners – $22,000 per year
• Security Officers – $21,150 per year.

f. How Do You Get Funding to Start a Vacation Rental Company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your service.

Aside from our membership fee, Red Roof® Vacation Rental Company, Inc. will charge patrons based on the industry standards in the United States. There are several factors that affect the amount charged to rent a vacation apartment. However, we will charge between $58 to $259 per night in our vacation apartment.

b. Sales Forecast?

• First Fiscal Year (FY1): $750,000
• Second Fiscal Year (FY2): $1.2 million
• Third Fiscal Year (FY3): $2.2 million

c. Estimated Profit You Will Make a Year?

Red Roof® Vacation Rental Company, Inc. is projecting to make;

• First Fiscal Year (FY1): (50% of revenue generated)
• Second Fiscal Year (FY2): (45% of revenue generated)
• Third Fiscal Year (FY3): (45% of revenue generated)

d. Profit Margin of a Vacation rental company Business Product/Service

The profit margin of a vacation rental company business is not fixed. It could range from 4.5 percent to 15 percent depending on some unique factors.

Growth Plan

A. how we intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Red Roof® Vacation Rental Company, Inc. will grow our vacation rental company by first building other vacation apartments in key tourist cities in the United States of America, the United Kingdom, France, Bahamas, Egypt, United Arab Emirates (Dubai), Canada, and Australia within the first fifteen years of establishing the business and then will start selling franchise from the sixteenth year.

b. Where We Intend to expand to and why?

Red Roof® Vacation Rental Company, Inc. plans to expand to:

• Los Angeles, California
• Long Beach, Washington
• Newport, Rhode Island
• Chicago, Illinois
• Clearwater, Florida
• New York City, New York
• Orange Beach, Alabama
• Ocracoke, North Carolina
• Block Island, Rhode Island
• Las Vegas, Florida.

Internationally, we plan to expand to the United Kingdom, France, Bahamas, Egypt, United Arab Emirates (Dubai), Canada, and Australia.

The founder of Red Roof® Vacation Rental Company, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international vacation rental company that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.

The goal of combining two or more vacation rental companies is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team and board of trustee.

More on Travel & Tourism

Vacation Rental Business Plan: Step by Step Guide

Are you thinking of investing in a vacation rental or maybe owning a property you’d like to use for vacation rentals? Well, before taking a huge leap into buying a property or investing in this fast-paced and booming business, it is important to take a step back and consider that there are many factors to take into account. As much as it is great to invest in a vacation rental business- decisions are not made overnight.

First and foremost, it is crucial to develop a vacation rental business plan that will allow you to identify potential risks beforehand. Take note, a well-thought-out vacation plan is a key to ensuring and determining the chances of achieving success as a host and in your business. More so, a strategic business plan will help secure funds from investors to develop your business.

Without further ado, let’s dive in:

• What is a vacation rental business plan?

Why is it needed?

• A recipe to a good vacation rental business plan
• Common mistakes to avoid in a vacation rental business plan
• Steps to building a vacation rental business plan

What is a Vacation Rental Business Plan?

In simple words, a vacation rental business plan is a set of rules and practices, goals, and frameworks that will help you make intelligent decisions beforehand ensuring your business is on the right path.

And not only is it a useful tool to refer back time and time again, but it also helps to rely upon and identify risks, plan and strategize on how to run your vacation rental business guaranteeing it’s worth the revenue.

It’s thrilling and exciting when buying your first property especially to property investors - who wouldn’t? They are eagerly ready to hit the ground and get the business up and running. However, keep in mind, before diving in, the vacation rental business plan is what’s going to ensure that you maximize your profits, set measurable goals, keep you on the right track, and accurately measure success.

Think about it - Without a business plan, it is like jumping into a pool of unpredictable risks and losses. A business plan is what keeps your business in place. For example, how do you know if your average daily rate is too low or whether you are spending too much on marketing? Remember, with a good vacation rental plan, your business will blossom and earnings will be tenfold than expected.

A Recipe to a Good Vacation Rental Business Plan

The secret to any good business is timing. Honestly, who wants to be in a mountain of debt? Nobody! Running a vacation rental is no small project. It takes a lot of effort, research, and process. Therefore, before jumping into the deep end, it is highly recommended that you draw up a business plan to truly judge whether your investment is worth the while.

Apart from that, ask for experts’ advice; those who have clearly proven success and have experience in the vacation rental market. Remember, a well-thought-out business plan is what justifies your means as well as guarantees a secure and blossoming investment.

Common Mistakes to Avoid in a Vacation Rental Business Plan

Targeting everyone

As your first business venture, it is common and understandable to want to welcome as many types of guests as possible but expect that you might not attract everyone.

Keep in mind, your vacation rental is not everyone’s cup of tea and that is perfectly alright. It’s better to narrow down your target niche and focus on that because you add more value to your vacation rental than having to attract none.

Ignoring the competition

Do not be overconfident that your vacation rental is the best value in the area. Be aware, other competitors in the market feel the same way and just might be better in price, style, availability, uniqueness, and might as well be everything; in comparison to your short-term rental. Therefore, try to assess your rivals and strategize on how you can outdo other vacation rentals that put you at an edge in the market.

Unrealistic financial plan

When venturing into your first business, it is common to dream big and want to make millions but take note, it will not happen overnight and neither in the first year of the business.

As great as it is to think positive and aim high, keep in mind when it comes to money, you need to be realistic. It is important to not overestimate your overall profits and underestimate your budget.

Steps to Building a Vacation Rental Business Plan

1. executive summary.

The title may sound intimidating but don’t let that fool you. An executive summary is an overall glimpse of what your business has to offer and why it is worth the investment. To put it simply, your executive summary is the cherry on top of the icing.

In simple words, it sums up what your vacation rental business plan is - which includes information about your properties, employees, future goals, prior success and accomplishments, and third-party vendors.

More importantly, the trick to outlining your summary is asking yourself the 5W’s and 1H (who, what, where, when, how, and why).

Property location:

• Is it by the seaside?
• It is located in the city center, a short walking distance from tourist charms?
• Is it located in the countryside?

Property type:

• Is the vacation rental family-friendly? Pet-Friendly?
• Is it a bachelor pad or intended to cater to business travelers?
• Is it a large, beach cottage- summer rental, or tent cabin?
• Is it Eco friendly?

Target audience:

• Is it targeted to attract families?
• Perfect for couples?
• Is your vacation rental suited for large groups?

Peak season and weekdays:

• Is it designed for summer or winter?
• Suitable all year round?
• Any festivals or events?
• Is it suited for business trips?

Reasons for the source of income:

• Is it for the extra income?
• Is it for your future pension when retiring?
• The main source of income?

2. Business Goals

Business goals are indicators of what success in your business appears like. Are you happy with the number of return guests? Are you content with a few bookings of the month?

Goals are what help identify steps and track the progress of your business. More importantly, business goals motivate you to achieve the ultimate which is a significant role in your vacation rental business plan. But for that to happen, business goals must be written realistically and detailed. Take note, an unclear goal is harder to achieve. Other than that, it’s ideal to give goals some sort of a deadline to accomplish what you aim for.

3. Value Proposition

Think about what makes your vacation rental different, who and what type of target guests you hope to attract, and how the business stands out from the other rental properties in the market.

In simple terms, the value proposition is the unique selling point of the business by knowing what are the strengths and using them to highlight to your advantage. Doing so will attract more guests and maximize your occupancy though keep in mind to do a thorough in-depth analysis beforehand that will help improve your unique offerings and achieve a profitable business.

4. Management Structure

Business management structure ideally explains the structure of the company whether it is a partnership or single owned individual, living up to its potential. Adding on, what is the current state of the business, and what property management services will you use?

To sum up and simplify, this section describes the business management structure that will help improve productivity as well as ensure all the members of the company accomplish their true capabilities.

5. Operations Plan

In this section, your operations plan is an insight into how your business will run. It is a simple part of your business plan as you most probably have even already planned it in your head.

More so, day-to-day activities include hiring new staff- do you need to outsource additional staff to help spread out responsibilities especially if you are having multiple properties, or do you want to take a role in being heavily involved in the business? How to keep track of your inventory or manage guest services? What about maintenance and cleaning , administrative duties, managing taxes, insurance , licenses, and third-party services such as property management software , etc.?

These are just a few questions to keep in mind when operating your vacation rental business. Additionally, think about how your current setup is and whether you require more improvements needed as you expand the business.

6. Financial Plan

In this section, think about how do you plan to finance the business ? Are you self-financing it or taking it out on a loan? Also, consider what the interest is like or what level of monthly payments can you manage?

Either way, the financial section outlines all the financial aspects of your business as well the history by discussing all of your previous success and how today it led to the state of your business.

Additionally, when creating a detailed financial plan and projections, it also includes:

• 12-month profit and loss projections
• 5-year financial growth
• An estimated balance sheet of expenditures
• Cost analysis

Take note, when acquiring funds or investors, it’s more ideal to work with an accountant to ensure that your documents meet the financial reporting standards required by the commercial lenders.

7. Marketing Strategy & Distribution Plan

This section plays an important role in your business plan, especially for all new hosts. Take note, the presence of OTAS’s and listing sites like TripAdvisor , Booking.com , Airbnb are quite essential for your business. Therefore, your distribution plan should consider which channels will you be advertising, how much they cost, how will you handle channel management , and when you get a booking, what are the terms of payment- is it PayPal, bank transfer, or cash/card? Note that, your distribution plan will benefit you from understanding how you will advertise your business in order to generate bookings .

More so, your marketing strategy should cover tactics on how will you market your vacation rental to key targets which include both online and offline marketing such as what social media platforms will you use, will you design and print flyers for local tourist boards, invest in paid advertising, etc. Doing so will help you achieve booking and increase the occupancy rate in the future.

8. Revenue Management Plan

When running a vacation rental business, you need to be on top of your ongoing expenses, incoming profits, and not to forget the overall finances of your business. Apart from that, you also have to include details of rates you aim to charge per night along with yield management and pricing tools you aim to use.

More so, remember to also include taxes, utility bills, staff costs, and your target monthly income in your revenue management plan. It might sound overwhelming to think about it but fear not as there are software tools such as QuickBooks to help with your revenue management plan.

9. Customer Analysis

How your business makes money is through your guests or customers. Without a doubt, it is significant to understand and know your audience, as well as their wants/needs, to help run a successful short-term rental business.

With that said, in this section, customer analysis is really where you describe and identify your ideal guest including creating different buyer personas based on the types of guests or customers that your business attracts or aims to attract.

More so, when building a detailed profile of ideal guests include information such as their names (fictional names), age, income, profession, or whether they are a family or not? These are just a few get-to-know information that will help you understand what type of guests to target and how.

Take note, to achieve more bookings, these guest profiles created can be used time after time in all aspects of your business. And with good customer analysis, you will identify and understand what to expect from your guests, their likes/dislikes about your vacation rental property.

10. Competitive Analysis

Other than understanding your own business and market, it is also important to carry out competitor research for your vacation rental business in order to thrive and help win booking over the competition.

Investigate and do thorough research of who the other local short-term owners are and how they do their work. Apart from that, find out and analyze what is the pricing strategy of the other competitors, who their target customers are, what additional services and amenities do they offer and if so, what are they? And also, what type of OTAs do they use for booking and marketing?

By doing a competitive analysis, you will understand and strategize on finding opportunities for your business to be on the top of the game. More so, there are some great software tools to help out in data analysis.

11. Milestones

Think about the future of your vacation rental business and how you can expand it further. More so, what are the plans and goals as well as key milestones in accomplishing these targets such as how much do you want to take a month or how many guests do you plan to host in the first quarter, and so forth.? You may also want to include:

• Optimizing your daily workflow
• Offering more amenities and services
• Increasing net income
• Minimizing expenses
• Increase occupancy rate
• Expanding more properties

With that said, key milestones and goals are a useful tool to refer back and keep track of the progress as well as ensure you're in the right direction. After all, it is easy to remain where you are if no goals are set.

12. Appendix

To help keep things running in a business, only the most vital information must be included in your business plan that is valuable to your business. More so, add an appendix for any supporting documents or information needed so that you do not require to look around when it is required such as tax information, or contacts when maintenance is required. This also includes:

• Contracts with third-party vendors
• Receipts and/or records of business purchases
• Tax registration details
• Information for maintenance and cleaning services, etc.
• Letters of support
• Vacation rental studies that you’ve cited in your business plan

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How to create a business plan for a holiday rental business

This is the step number zero, when it comes to start your rental business. First you dream, then you plan and later you act.

Introduction

Many people that float around the real estate industry think that in order to build a successful holiday home rental business, creating a business plan is not necessary, as the business model for this operation is quite straightforward.

Well…NO, let us prove you wrong!

Same as every other business model out there there are many variables in play that can determine the success or failure of your enterprise. This is why you need a real estate business plan to get started.

If you are about to, or thinking of, creating your Airbnb business for the first time there is nothing better than some planning to set “things in order” before you get started.

In this short article you will learn the basic steps needed for you to create a successful Airbnb business from scratch by developing knowledge and insight that will shape your operation and will leave as little as possible in the hands of this random universe we live in.

All of the informations in this article are explained in more depth in our business plan template that you can download for free.

Table of contents:

• What is a business plan
• The executive summary

Competitive analysis

Marketing plan.

• Financial projection

Operative plan

What is a real estate business plan.

A real estate business plan is a simple document that outlines the goals, strategies, and objectives of your real estate rental business. It can also include a market analysis and financial projections to help you or your investors determine if your business idea is viable and set some expectation benchmark for the future.

Creating a business plan can seem a daunting task, but you’ll see what a little bit of planning can do to your real estate enterprise if you apply the basic concepts in this article.

Here’s an outline of what should be included in your business plan:

Executive summary

This is a brief written overview of your rental business, including your mission statement, target market, and financial projections. Even though the executive summary will be “page one” of your business plan, is actually the last step in the creation of a business plan, first you will have to gather intelligence and create your financial projections.

A real estate competitive analysis is a process in which you identify your competitors and assess their strengths and weaknesses in relation to your own business. 

This information can then be used to help you develop strategies to improve your own position in the market.

After you find the ideal location to establish your real estate rental business, it is vital that you start considering what other entrepreneurs are doing in your area and try to reverse-engineer their strategy. 

The competitive analysis is particularly useful to you to understand:

• Who are and how many competitors are in your same area
• What are they offering in terms of amenities and services
• What can you offer more to your guests to make your property more appealing
• How successful are they?
• What do they do to promote their vacation rental?
• Have a look at their marketing strategies. 
• What kind of guests (or buyer personas) do current competitors target?

There is a lot to cover when it comes to performing competitive analysis for real estate rental businesses and every individual entrepreneur usually finds its own way and develops a unique view of its market of reference. 

Our suggestion is to take what applies to your case and develop insider knowledge of your market . 

If you really want to study your competitors in an area you have no familiarity with, just go visit their businesses (undercover or not is up to you!) and get a real look and feel of their amenities and services then build a better offer that is more attractive.

This does not mean that you will be creating copycats of other properties and businesses or making industrial espionage (it’s unethical and unfair!), it means getting to know the industry standard in that area and then come up with your ORIGINAL solution.

Making copies will not benefit your business, as you probably will not have a clue about what you are doing and makes you play in a more competitive field. Always make informed decisions and be original.

First hand insights are extremely valuable because the data and intelligence you gather online does not always tell the full story of a business nor it explains its success. 

Do not underestimate them.

Make sure to check our full article on competitive analysis to learn more.

Getting into the real estate business also means that you will have to attract customers and thus create a clear vision of your target market and the kind of visitors you want to attract early on.

This will be very important for helping you get more reservations. 

To answer this question, you should make as many different buyer personas as you can for each of your target groups.

These "made-up" versions of the people you think will stay at your vacation rentals will help you in the future with all parts of your business, like writing content, marketing, bookings, social media posts, advertising, etc.

Since every holiday rental business is different, it's likely that each one has a different set of customers with different personalities. 

When making your buyer personas, think about their normal needs, status, demographics, interest and where you might find them from a marketing point of view, e.g. online, tourism agencies, listing sites, social media etc.

This is crucial because the more you will be able to focus your efforts towards a specific niche of people the more chances of success you will have other than creating a great competitive edge in the market.

If you can’t beat the competition at their game, create your own ;).

Just make sure to create something that is unique and can be appealing to enough people to stay in business for longer periods of time without suffering too much from new competitors joining the area. 

As mentioned in the competitive analysis section above, copycats go out of business quickly, the reason? Market saturation and lack of uniqueness!

As an example, let's say that your rental business is themed after “The Rolling Stones” and that everything in the house reflects the character of that band (from posters to stage lights, etc).

Who is going to be your typical client?

Although this is a tough question to answers (because many niches intersect with that particular music taste), you can guesstimate that Rolling Stones and rock listeners will be more likely to book your home or apartment, and so, if you would have to promote your business one of the key selling point of your rental business could be the main theme of the house.

I know this sounds like technical marketing “jibber jabber”, and it is. 

If you have no time to invest in marketing operations, seek a professional marketer or marketing agency. The way you communicate is crucial.

Financial projections

The use of numbers in your business plan is important.

You must be able to describe your business's financing strategy in full in this part of your business plan, together with any projections for estimate future revenue and expenses of your holiday rental business.

Here's something that you should consider including:

• Any costs to get the vacation rental up and running (capital investment)
• Costs for repairs, maintenance, and cleaning
• Operational expenses
• Estimates of income for the next five years
• Costs of any licenses or permits 
• Costs of extra services you might want to hire (e.g. cleaning)
• Taxes you pay

If you find yourself in need of a free tool to calculate and generate financial projections for your holiday rental business head to our ROI calculator .

There you will be able, with few simple inputs to extract valuable data to use in your business plan.

The operations plan, which is sometimes called the management plan, needs to include the specifics of how you want to run your new business on a day-to-day basis.

In this case you can do it yourself if you want to save some money or rely on companies that can manage everything for you. It's your choice, but make sure to plan this in advance to avoid surprises.

Ask yourself:

• Who will be in charge of running it on a daily basis?
• How many staff members will you need to employ?
• What will they be expected to do?
• What are your service standards?
• Which suppliers will you use?
• How much will management impact my monthly expenses?

Conclusions

As you see, there is a lot that goes into creating a holiday rental business plan. If you are just getting started make sure to plan everything before you start, the last thing you want, is to find a problem too big to overcome, especially if your budget is limited.

Creating a business plan for your rental business is a great way to get started on the right foot.

By outlining your goals, strategies, and financial needs, you can develop a clear roadmap for success. 

While it may seem like a daunting task at first, with a little time and effort you can create a comprehensive plan that will set your rental business up for long-term success. 

Creating a business plan It’s a one time effort in exchange for possibly a lifelong advantage. 

It’s sure worth your time and attention!

Still convinced that this is a straightforward business model? Think again!

Thank you for reading!

All of the informations in this article are explained in more depth in our free business plan template that you can download now.

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What is a Holiday Lettings Business?

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About Houst

Houst is a leading property management company specialising in short-term and medium-term bookings in eight countries. With over 7 years of experience and managing over 300,000 bookings, we help homeowners make the most of their properties.

Have you thought about setting up a holiday let but are still deciding whether to start? Or you're probably wondering, "how profitable is the holiday lettings business?" Here’s everything you need to know.

The hospitality industry is one of the biggest global industries, boasting a market size of 3,953 billion US dollars in 2021 and 4,502.83 billion US dollars in 2022. This figure is expected to rise to about 6,000 billion US dollars in 2026.

Due to COVID, these 2021 and 2022 figures were less than the industry's market size before the Covid pandemic. As the world resets to normal, there are indications that the market size could get bigger.

For example, in the UK, the economic output of the hospitality sector was £59.3 billion in 2019. Although it noted a 42% and 21% decline in 2020 and 2021, Oxford Economics predicts that the industry will be the fastest-growing part of the UK economy in the next five years. Moreover, bookings are currently up to 35% compared to pre-pandemic levels, according to Sykes Staycation Index.

If you want to tap into this robust industry, starting a holiday lettings business is one of the easiest ways to go about it. Here, we will guide you through what a holiday let business entails and how to start one.

Table of Contents

A holiday lettings business involves renting short-let accommodations to travellers and tourists. There is an emphasis on the term "short-let" because these accommodations are equipped to cater to the visitors' needs for only a short period. The short time ranges from a few days to a few weeks.

As a holiday lettings business owner, the maintenance, daily operation, availability of amenities, risk management, and security of the property and its occupants are your responsibilities.

On a happier note, you don't have to bear the full weight of managing the risks of letting your property. For more information on how to protect your investment and manage the risks associated with short-term lets, read our blog on holiday let insurance and cover .

Also, if you want to avoid the hassle of keeping track of guests, cleaning, and making sure they have everything they need, take advantage of Houst's guest management calendar and housekeeping team.

Holiday let business models don't vary too much, so if you're wondering how to run a holiday let, it can be pretty straight forward with the right support.

Starting a Holiday Let Business

With the definition of out of the way, let us look into how to start the holiday let business. We have mentioned that the holiday lettings business is an easy way to get a sizable share of the robust hospitality industry. However, like every profitable venture, it's not without its challenges.

The holiday lettings business is multifaceted. This means that you have to consider a lot of things in the process of setting up a holiday let. We have broken down the process as easy as possible in this guide. Below are the steps involved in starting a holiday let business;

Getting a Holiday Home

The holiday home is one of the essential aspects of starting a holiday home business. There are some businesses which use a tactic called “rental arbitrage”, but we won’t cover that in this article.

If you have a second home, you can use it for a holiday home. Otherwise, you will need to rent or mortgage another property. Before renting or mortgaging a new property, you need to consider certain factors to determine its suitability and potential yield as a holiday home. The factors include;

The location is the leading consideration when choosing or buying a property for a holiday let. This is because your property's location will affect your ability to attract guests and how much you can charge for stays. Thus, finding one with tourist activity is of paramount importance.

Having said this, you should also remember that your guests are human and would appreciate some quietness in their accommodation. Therefore, the ideal location for a holiday home should be close to tourist sites but not too close to the city's noise and hustle and bustle.

If you want to run a short-term accommodation like Airbnb, the property should be close enough to amenities such as shops and restaurants so that you can offer convenience for your guests.

Some holiday let businesses do well running remote locations, but this is a niche, so it’s best to look for something which ticks the most requested boxes.

With this information and your ideal guests in mind, you can narrow down the areas where you would consider getting a property for your holiday let business.

Ideal Customers

To run a successful holiday let business, your holiday home needs to appeal to your target customers. Think about what kind of people you want to attract to your property – families, couples or groups of friends. Think about what they might want from their visit and what they may need from you as the owner.

For example, If you'd like to cater for families or large groups of guests looking for adventure, an excellent choice would be a spacious house in a seaside town. These locations would make your stay popular due to its proximity to sandy beaches, seaside restaurants and fishing spots.

If your ideal guests are high-end clients who enjoy luxury travel and are happy to pay handsomely for it, you'll want to find a holiday home in a premier location. That might mean renting a property near a well-known tourist attraction or resort town that elite people like to visit on holidays.

Suppose your target audience is more price sensitive. In that case, you can rent a property in an area that isn't quite as expensive but still has good public transport links and amenities nearby (coffee shops or restaurants).

Type of Property

It is also essential to consider the type of property you want when running a holiday let business — the more rooms in the property, the higher your chances of earning more money.

Thus, you could choose a multifamily property that allows you to house more than one tourist at a time or a single-unit property where you can only accommodate one tourist at a time.

For more insight on mortgages for a house let business, read through our blog which covers holiday let mortgages .

Preparing the Property for Business

Once you have acquired the property, the next line of action is putting the right things in place to make it an ideal holiday home.

You need to understand that the holiday lettings business is competitive as many people provide the same accommodation services that you provide. Therefore, you should strive to implement strategies that can make your guests prefer your property over your competitors.

To start with, you need exquisite interior decor for the holiday home. You need not break the bank, but it should be unique and can stand the test of time. The furniture pieces that go into the property should also be of good quality. It also does not hurt to have extra features and amenities in the property to benefit the tourists patronising the holiday let business.

Amenities such as parking spaces, Wi-Fi, hot bathtubs, gardens and usable lawns, and the likes could be why a tourist would enjoy their stay on your property and recommend it to friends and family.

You should also look into making arrangements for pets. Hoo's research reveals that the lack of pet-friendly accommodation is one of the reasons that hinder guests from having the "pawfect" staycation.  

83% of pet owners in the UK feel guilty about leaving their dogs behind, and 56% do not mind travelling with them. Hence, making provisions for pets would make your place more appealing to visitors.

Regulations, Laws and Permits

Despite being a holiday home, your property is not exempted from some property rules and regulations that guide the purchase and ownership of properties in the UK. If you decide to turn your home into a holiday let, you would need to apply for a "change of use" permit.

You may also need to obtain a hotel licence to run your business. In any case, you should check in with your local council to avoid breaching any rules. These will ensure that your holiday lettings business runs smoothly without any inference from the government.

In this blog, we have simplified the process of starting a holiday rental business by explaining what the business entails and how to go about starting it.

Keep in mind that Houst is a professional hosting management company. We help our hosts optimise their listings so they'd earn the highest rental income on their properties without putting in the extra effort. For more information, contact us today.

Remember that people going on holiday in the UK will want:

• Dog-friendly stays
• A contactable property manager
• Potentially a hot tub
• Furnished holiday lettings
• Maybe a holiday letting agency to give them peace of mind

FAQs About Holiday Lettings Business

Is a holiday let business a good idea.

Yes! Holiday letting business is a good idea because several factors make it profitable. Firstly, the number of people travelling during the holidays, especially in this post-Covid period, is increasing. Hence, you can start a house let business and earn from accommodating tourists and visitors.

The second reason is that plenty of platforms out there that allow you to easily list and market a property you own or rent for short-term rentals. Moreso, you can start a short-term rental with no money.

The most important thing is to know how to manage your guests and the holiday rental property properly.

How do I Start a Holiday Let Business?

There are three processes involved in starting a holiday let business. They are:

1. Getting a home: You can use your second home if you have one, but in the absence of that, you need to acquire or rent a property. When getting a house let property, you should consider;

• Ideal customers
• Type of property

2. Preparing the property: It's important that you finish and set up your house in a way that would appeal to your target customers. This will go a long way in determining whether you'd have returning guests or bad reviews after their visit.  

3. Obtaining the necessary permits: Speak to an expert in your local area to find out what the necessary permits are that you must get before setting up a holiday let. Rules vary significantly in different areas, so don’t get caught out!

Other businesses that you might start with a property include a self storage business, which you can streamline with a self storage software .

What are the Legal Requirements for Holiday Lets?

For your property to be acknowledged as a holiday let , it must be well-furnished, equipped, and available for commercial letting for 210 days a year.

The exact legal requirements vary, but you should always have holiday let insurance, ensure the property is safe and follows proper health and safety regulations, plus ensure you have a permit for the desired area.

The Insider @ Houst

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. If you have hosting inquiries, please write to us at [email protected]. For guest inquiries, reach out at [email protected]. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

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How to run a successful holiday rental business

Investing in a holiday let gives you the freedom to run a business from home in some of the most beautiful parts of the country. if you’re thinking of taking the plunge, here’s our guide to running a successful holiday rental business..

Many people dream of escaping the hustle and bustle of the city for a new life in the country. But even if you’re retired, you may not want to give up working just yet. Homes with an adjoining holiday let can generate a good income and allow you to live in your dream location. Alternatively, you may look at a holiday let as an investment, either to generate income or to take advantage of capital growth.

Whether you’re considering a new business venture or a second home, we look at what you need to consider if you’re thinking of investing in a holiday let.

Decide on the primary purpose of your business

This affects what type of property you go for, where you buy and how you run your business. If you want a holiday cottage that you can use during school holidays and let out at other times of the year, then your approach to choosing a property will be very different to someone whose primary goal is to generate income.

Choose the right location

As with buying any property, location is key. If you want your holiday let to be full all year round, then you need to choose a popular location with an active tourist market. It’s always worth checking out the competition to see if there is a niche that isn’t being filled in the local area.

For example, Church and Corner Cottage is located in a small Rutland village, close to Stamford. Nearby Burghley House and Rutland Water make it a popular area. There’s plenty of holiday accommodation but a lack of luxury self-catering properties, a gap which this cottage nicely fills.

Make sure the property suits your target market

You also need to decide who your ideal customer is. If you have a large property, then your target market is likely to be families. Whereas a cosy, one-bed cottage can be marketed as a romantic retreat.

As with any business, if you want to command top prices, then you need to offer a high-quality product. This may mean spending a bit extra to upgrade the existing fixtures and fittings and install fast Wi-Fi or offer special touches such as a welcome hamper of locally-sourced food.

For some people, renovating and upgrading a property is part of the fun. But if you want to get up and running immediately, your best bet is to choose a property that’s designed to be run as a holiday let.

Church and Corner Cottage is a recently renovated three-bedroom property with the flexibility to be let as a single unit or two completely self-contained cottages.

It’s fully fitted out with bespoke kitchens, Artisan of Devizes limestone floors with underfloor heating and Perrin & Rowe bathroom fittings. Not to mention all the technology expected of a premium holiday let, including high-speed Internet, USB charging points and integrated Freesat TVs. With the option to include furniture and bedding in the purchase, the property is ready to let from day one.

Be prepared to work hard

More work goes into running a holiday let than you may realise. But if you want to take a more hands-off approach to managing your property, there’s always the option to subcontract some or all of the work out to others.

There are many property sites and marketing professionals who can help you market your business online. Hiring local staff to help with cleaning, gardening and greeting guests takes the burden off you and boosts employment in the local area.

Other great letting opportunities

If you fancy escaping to the country and investing in a holiday rental business, check out these ready-to-let options.

• Mary’s Cottages is an established lifestyle business in Elgol on the beautiful Isle of Skye. The five-bedroom house and four thatched cottages are ideally situated to take advantage of the surge in popularity of weddings at nearby Loch Coruisk.
• This converted Welsh stone barn with stunning views over Harlech beach has two cottages and a leisure complex in addition to the main house. It’s location in Snowdonia National Park and local amenities draw visitors to the area.
• Knockbrex Castle , close to the Solway coast, is a great niche investment. The seven-bedroom castle is perfect for large groups or small weddings and there are two additional cottages in the grounds.

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Holiday Let Business Model Guide 2022

You are here: Home / Help & Advice / Holiday Let Business Model Guide 2022

The holiday let business model is a wide topic with many interesting sections. The two most critical are:

• how to maximise your revenue from your holiday property bookings; and
• how to wow guests by fulfilling those bookings in terms of quality housekeeping and excellent customer service.

Maximising rental income

When assessing your rental income and how you can maximise your revenue opportunities, it comes down to two factors. Firstly, how you market your holiday rental business and secondly, how you price it.

Holiday let business model marketing strategy:

With regards to marketing, before diving into the details of digital marketing, it’s important to get the fundamentals right. As property manager, it is vital to ensure that your holiday home is photographed and presented brilliantly. It sounds obvious, but just go online and see how many poor holiday cottage listings there are. Use nothing but high definition images and preferably produce a helpful ‘walk through’ video, alongside text that’s engaging for your audience and also accurate. The description should tell potential guests everything they need to know; location, how to get to the property and the property’s facilities, for example. The overall portrayal of your holiday let has got to be appealing and, above all, remember it’s the  photographs that sell .

Once you have a great listing, you then need to plan how you get this message out to the public. Your property needs to be promoted in all the right places, so that people see it when looking for holiday homes. This process is typically search-based via the internet. For example, if someone types ‘luxury holiday cottages in the Cotswolds’, you have to ensure that your property (if that be a Cotswold cottage) is going to be found. Likewise, if you own a ‘dog-friendly cabin in the Lake District’, your property needs to be found under those search terms.

Achieving the above is very difficult if marketing the property yourself. Some holiday cottage owners will decide to build themselves a website, but the problem with this method is that nobody will find you because you won’t appear in any important national or regional keyword search results! It would also be uneconomic to pay for your own digital marketing such as via Google AdWords, and putting an advert in a newspaper is unlikely to generate much business.

Property managers can, of course, go direct to the market through a portal such as Airbnb or TripAdvisor, which have international reach and are well known. These platforms will essentially take your property’s description, photographs and details, and publish them onto the public site, where people can find them.

If you go it alone by promoting your holiday home on just one, single portal, it’s unlikely that you’ll generate sufficient exposure to really maximise your rental income. It’s more likely that you’ll have to go with multiple platforms, if not all of them simultaneously. When doing this, one important consideration is to ensure that your property is listed as ‘Instant Book’ on all platforms, otherwise you’ll get pushed to the bottom of the search results and get few bookings. Do bear in mind that if you’re listed as an ‘Instant Book’ property on a number of different portals, you may run the serious risk of double bookings. As a result, you might want to consider how to split the calendar amongst the different portals.

Alternatively, there’s the option to go with a third party, specifically a professional holiday letting agent, either national or local. The agent route tends to be the most expensive but will also typically result in the largest reach and greatest rental income. Agents have the necessary technical skills to solve the double-booking issue noted above, and typically have extensive marketing experience and budgets.

Therefore, for property managers whose objective it is to maximise marketing reach and financial return, going with an agent is normally the way forward. It also helps you get a holiday let mortgage – read more about mortgage lenders and their criteria here .

Holiday property pricing strategy :

Working out a pricing strategy for your holiday property is fundamental. If you under-price the property, you’ll appear to be successful and get a larger number of bookings, but you will not generate a good profit. On the other hand, if you over-price, you’ll make a few bookings at a much higher value, but at the end of the year when you tally up your profits, you’ll realise that you’ve not made much money at all.

Pricing your holiday let is a complex subject as it’s affected by many things, including seasonality and popular local events such as festivals. It’s also affected by time, in the sense that a holiday booking slot is like a perishable item – as the start date gets closer, the potential value decreases to the point where, if no one books the property for that date, the value of the slot becomes zero.

Discounting or ‘variable pricing’ is a common strategy, which ties in with the idea of holiday homes as ‘perishable’ items. The idea is, if your property hasn’t sold by a certain date, it’s time to apply a small discount to entice someone to make a booking. You can then increase this discount with time, but this will be subject to a minimum price, as there comes a point when it’s not worth selling the booking slot.

Agents provide sophisticated pricing strategies, developed over many years of experience and with vast data sets, and so they’re the recommended advisors to go to first, in order to work out your pricing. The portals (such as Airbnb and TripAdvisor) can estimate what your pricing should be, but generally, such portals work on a nightly rate model that’s more suitable for hotels and B&Bs and does not translate very well for holiday homes.

Housekeeping and property management

Efficient housekeeping is fundamental to the success of your holiday let. If a guest arrives to a holiday cottage that’s unclean and unprepared, they’re likely to leave and never book with you again. Having a refined and controlled housekeeping function is absolutely essential.

Outsource or do it yourself:

You can undertake the task yourself if you’re so inclined and have the time, or you can pay for a professional housekeeping service to do the work for you.

When making this decision, it’s important to acknowledge the amount and frequency of the work involved. If you run a successful holiday home in an active tourist market, such as the Lake District or Cornwall, you could generate over 50 bookings per annum. This means over 50 times a year that your property will need to be properly cleaned, which is a large amount of work.

Thus, if you decide to do the housekeeping yourself, or appoint friends or family to help, some caution needs to be applied. It might be a substantial task that is best-suited to a professional!

The other aspect to consider is that you cannot have cancellations for housekeeping. Once you’ve taken a booking, it’s a legal obligation on you, the holiday cottage owner, to fulfil, and you have to make sure that the property is ready for your guests. What you can’t have is a housekeeper who calls you up on the day, saying they can’t work. This is not a workable solution and your holiday letting business will suffer as a result.

Another (often overlooked) dynamic is that it is very normal for people to book late, especially with the smaller properties. This could mean you get notification of a booking with only one day’s notice and you’ll have to get there and take care of the turnaround within this tight time period. This can be a very difficult task for a non-professional housekeeper.

When people think about housekeeping, they tend to think, simply, of cleaning a cottage. In reality, the turnaround on holiday homes comprises quite a bit more. You’ll need to do a quick inventory check; look for items that have been left behind by guests; put things back in their correct place; replenish supplies such as coffee and sugar; do the washing and ironing of all the linen; empty all of the bins; and so on. Essentially, you have to get the house set up for a guest, to the same high standard every time.

The recommendation is, if you can do it yourself, be prepared for the workload and be aware that you have to carry out the work to an excellent standard, for every single booking. If this isn’t feasible, it’s advisable go with a professional holiday property business housekeeper.

Providing outstanding customer service

A lot of property managers think that efficient turnaround and housekeeping is all that’s required for a successful holiday let, but this is not true. What’s also paramount is the customer service aspect, which needs to be nothing short of excellent as guests expect this when selecting their holiday accommodation.

If you’ve gone with a holiday letting agency, some of them will take charge of customer service, while others do not – it depends on what services the agent offers. If you’re taking care of customer service yourself, then you need to be prepared. Expect to take phone calls, potentially at unsociable hours, which could be anything from small issues such as: ‘I don’t know how to turn on the television’, to more serious matters such as: ‘the boiler has broken’ – if that’s not for you, then consider a holiday letting agency .

Regardless of how the situation has come about (many issues are not the owner’s fault, there could be a power cut, for example), you need to be ready to jump into action and solve the problem. When people are on their holidays, they expect any issue to be resolved quickly and efficiently, and it is the holiday cottage owner’s responsibility to do this. If the holiday letting agency are not set-up to be able to handle this part of their business, then it is recommended they ask their housekeeper to take over the role. This often costs more money, but from our experience, it is money well spent – factor it into your business model!

Looking beyond housekeeping and customer service, increasingly we are seeing more emphasis on going the extra mile to ensure that your guests not only have a nice house to stay in, but also have an exceptional experience whilst on holiday. This means, as well as a welcome gift, holiday cottage owners are offering additional perks and personalised experiences, for example, organised walks, bike rentals, providing home-cooked meals (unless your guests are self catering holidaymakers), and leaving useful information about nearby attractions and eateries to secure more bookings.

Security or damage deposits

Holiday letting is a business in which you’re opening your doors to the general public; as a result, it’s only a matter of time before there’s some sort of problem. Whether it’s something being broken, or damage that’s done to the property intentionally or accidentally, such situations will arise. You need to plan how to manage such problems and how to protect your property.

The topic of whether or not to use a security deposit is a polarising debate. Some holiday cottage owners do not put a security or damage deposit in place, instead, they handle each event on its own merit, as and when it happens. If the amount of damage is less than a certain sum, for example £50, then they don’t pursue it in the interest of goodwill. But when it’s above that amount, owners should feel every right to engage with the customer, in order to ascertain the reason behind the damage and ask for their contribution to rectify the situation.

Other holiday cottage owners will prefer to take a security or damage deposit in advance, such that if there is a dispute about damage, the owner has a certain amount of money to offset the repair costs. If you don’t have a deposit, there’s no way to claim compensation (if the guests deny they’re to blame for the damage or refuse to pay). In that case, the only solution is to take the guests to a small claims court; an option which is decidedly unappealing!

Taking a deposit is not a ‘free option’. Normally there is a cost involved in the administrative task of taking/ returning the money. There’s also an ‘opportunity cost’, in the sense that you’re likely to lose a few bookings each year, as some guests will feel that the security deposit process is flawed and unfair, the reason being that there is no detailed check in/ check out procedure with a holiday let. The power thus lies with the property manager. If someone met the guests on arrival and departure to look around the property in detail, that would be a solution to the problem. However, in reality, there’s not enough money or time to allow that to happen.

Feedback and reviews

We live in a review-based culture and this is something that property managers should embrace, rather than being afraid of. Reviews are a very powerful marketing tool, so following a guest’s stay, it’s recommended that you provide them with a very simple feedback form, most probably sent via email for ease.

How to handle negative reviews:

If you receive a less-than-positive or downright negative review, the first thing to do is not panic! Read through the guest’s comments carefully and consider your response.

What you shouldn’t do is take an emotional or knee-jerk reaction, and then write a counter-attack response. It’s essential to remember that your comments will probably be read by all of your future guests. Speaking about how to deal with reviews, director of Holiday Cottage Mortgages, Andrew Soye, says: ‘Our advice is, always try to take the high road and don’t get into a tit-for-tat argument’.

He continues: ‘If a guest writes ‘I didn’t like your cottage and didn’t enjoy my stay’, the owner should reply with a professional response. Write something that addresses the person’s concerns, make an apology and say that you’ll get in touch with them directly. It’s also important to express that you will review your procedures to ensure they’re perfect for future guests’.

Of course, it’s critical to actually address the person’s concerns and fix any issues that may exist. By doing this, future guests reading the complaint and the management response will think: ‘that problem has been resolved professionally’. Essentially, write a positive response that will give people confidence that any issues are sure to be handled well and will be fixed.

Generally speaking, if there’s a holiday home that has no reviews, alongside a cottage that has a negative review with a good response, the latter is more likely to generate bookings. People like the fact that they’ve seen a good response, directly from the property manager or agent.

How to handle positive reviews:

If you get positive feedback that’s brilliant news, and you should aim to post that feedback across as many social media and review sites as possible, to make sure the world knows about it.

It’s also important to respond to positive reviews; acknowledging positives offers an excellent marketing opportunity and reinforces your branding. It shows that you have a level of care to your customers and pay good attention to detail. This will in turn help to generate more bookings and boost your rental income.

How much can you borrow?

Use our free mortgage calculator created by the UK's leading holiday let mortgage specialists, and find out how much you can borrow today!

FCA 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 and so please speak to one of our Consultants to confirm the most accurate up to date information. Nothing in this article constitutes financial advice. You understand that by clicking any external links on this page that you will be leaving the website of Holiday Cottage Mortgages and we cannot be held responsible for the content of this external website. Please always consult your accountant or solicitor for all financial, taxation or legal matters.

Setting up a Holiday Rental Business

All you need to know about starting and running your business.

In this article

What is a Holiday Rental Business

Tourism is the fastest-growing industry in the UK and is expected to keep on growing. In fact, by 2025, the tourism industry in the UK is expected to be worth nearly £260 billion.

The number of holiday rental homes in the UK is also rising, with the number of holiday homes increasing by 40% in the last three years. When you include the number of holiday rental businesses in the rest of Europe and the popularity of these homes, it is easy to understand why more and more people are choosing to set up a holiday rental business.

A holiday rental is the renting out of a furnished property on a short-term basis to tourists, visitors and holidaymakers. The property is usually privately owned and is rented to guests for a per day, per week or per month fee.

Many different types of furnished properties can be used for holiday rentals, including:

• Apartments.
• Log cabins.
• Townhouses.
• Converted barns.
• Manor houses.

Usually, holiday rental properties are located in desirable areas that are popular with tourists. These could include:

• Cities, such as London, Edinburgh, Manchester or Dublin.
• Beach or coastal locations.
• Countryside locations.
• Locations close to an area of interest, e.g. Snowdon or Hadrian’s Wall.
• Locations close to an event, such as Glastonbury Festival or the Grand National.
• Mountain locations (e.g. for skiing).
• Lakeside locations.

A holiday rental property is usually designed to be a home-from-home for guests. It will be fully furnished, meaning it will feature appropriate furnishings and equipment to be functional as a home and for guests to stay at the property comfortably. Holiday lets usually don’t function in the same way as hotels and other types of properties in the tourism industry. Not only will a holiday rental be significantly more spacious compared to a hotel, but there are usually no staff onsite and guests will stay at the property without outside intrusion.

If you are thinking of setting up a holiday rental business, you must consider the location of your property. To qualify as a holiday letting in the UK, your property must be located in the UK or the European Economic Area (EEA). The EEA includes countries in the EU, as well as Iceland, Liechtenstein and Norway.

If you are thinking of starting up a holiday rental business, there are several different ways you can choose to run and manage your business including:

• Manage the property yourself, including all bookings, payments and check-ins.
• Advertise your property on a third-party website, such as Booking.com or Airbnb.
• Hire a holiday letting agency to advertise and manage the property for you, including handling bookings, payments, check-ins, guest questions and cleaning and maintaining the property.
• Run a holiday rental business with multiple properties in the same or different locations.

There are many different responsibilities associated with running a holiday rental business. Your responsibilities can vary, depending on how involved you are in managing and running your business.

Some of the responsibilities you can expect include:

• Cleaning the entire property in preparation for each booking.
• Changing bed sheets, making the beds and washing towels and other linens.
• Advertising and marketing the property.
• Running your business website.
• Taking high-quality photographs and providing accurate descriptions and important information.
• Creating a pricing strategy.
• Managing bookings and payments and handling receipts and invoices.
• Providing advice and recommendations to guests.
• Purchasing, cleaning and maintaining equipment and furniture.
• Complying with all legal guidelines and health and safety requirements.
• Maintaining accurate records.
• Completing business and administrative tasks.

Starting up a holiday rental business can be both financially lucrative and personally rewarding. You won’t need any formal qualifications and training to run a holiday let; however, certain personal qualities can be beneficial and can help you to make your business a success. This can include good organisational skills, strong business and property management skills and a good knowledge and understanding of the tourism industry and how to make your property attractive to potential guests. An understanding of the relevant health, safety and hygiene guidelines is also recommended. To help encourage the success of your business, you will need a detailed and well-prepared business plan.

Types of Customers

Identifying your target market and the typical customers that your business is likely to attract is a key step when creating your business plan and setting up your business.

Although anyone looking to book a holiday can be a potential customer, certain factors can have a significant impact on your typical customer base and the types of guests that are most likely to book your property.

These can include:

Your pricing

This is one of the most significant factors in determining your typical customer base. Holiday rentals are priced differently, depending on the location, space, amenities, furnishings, décor and the overall quality of the accommodation. Because of this, you will likely focus on one specific pricing market.

Guests can typically be separated into three pricing categories:

• Budget: Price is the most important factor for this type of customer. They will likely choose the cheapest property and will be happy with more basic facilities and accommodation, less space and lower overall quality. Budget customers usually want to spend as little money as possible while still staying in decent accommodation. To account for lower income per guest, you will need to cut costs elsewhere. For example, your accommodation may have a lower market value, it may be smaller, and the furnishings and décor may be simpler.
• Mid-market: Mid-market customers are usually looking for a combination of quality and affordability. Although price is important to them, it won’t be the only factor they consider. If you operate a mid-market holiday let, your property will likely have more space and higher-quality furnishings and facilities. You may also offer extra features, such as free parking and TVs.
• Luxury: This type of customer is willing to pay higher prices for the best possible accommodation. Luxury accommodation is usually the highest-price accommodation with more spacious rooms and luxury furnishings and décor. You may also have additional amenities, such as a swimming pool or hot tub, which allows you to compete with hotels. Your property should also feature premium facilities (e.g. luxury garden furniture, premium bathing facilities and a superior kitchen). Your property should also be stylish and feel luxurious to your customers.

As well as the quality of your accommodation, your pricing strategy can also be dependent on other factors, such as your location, the demand, your direct competition, and your booking platform.

Your location

This is one of the most important factors in determining your typical customer base. Are you located in a city, a town, a village, the countryside or near the coast? Are you close to a landmark, an area of interest or another popular location? Does your property have good transportation links, for example, are you close to a train station? Many guests may have a location or area in mind when searching for a holiday rental and certain locations are likely to be more popular with certain guests. For example, a holiday rental close to a beach may be more popular with families, whereas a property located close to Snowdon may be more popular with nature lovers and hikers.

Your guest reviews

This is an important factor that will persuade potential guests to book your property. Holiday rentals with a higher review score and a high number of reviews are more likely to attract mid-market and luxury customers who are willing to spend extra money.

Your advertising

Advertising includes the advertisement platform you choose and whether you have your own website. Most potential guests will look at many different properties before choosing which one to stay in and your property description and the photographs you choose will be key factors in their decision. Holiday rental advertisements that feature professional photographs, a thorough description and a professionally designed website may be more likely to appeal to higher-end guests.

Equipment You Will Need

Your equipment needs can vary, depending on the type of holiday let accommodation you set up. Your required equipment can include furniture, accessories and other equipment that is essential to the running of your business. The amount of equipment you require will depend on the size of your holiday let.

Holiday rental properties typically offer guests a home-from-home experience. Unlike hotels where guests usually only have a private bedroom and bathroom, holiday rentals offer an entire home (e.g. a house, apartment, cottage or villa) that is fully furnished and offers guests similar equipment and amenities that they would expect to find in a home.

An important factor you will need to consider when planning your furnishings and equipment is your flooring. Different rooms in your property may require different flooring, for example, the kitchen and bathrooms will likely require tiles, whereas, for other areas of your property, you may choose carpet or wooden flooring. Wooden flooring can be more practical and easy to clean whereas carpets can provide a cosier feel, particularly in bedrooms and the living area. When planning your flooring, consider what you want the overall aesthetic of your property to be.

The equipment typically required by a holiday rental business can include:

Living Room

The living area will likely be the main communal area for your guests. The living room should be decorated to fit the aesthetic of your business and make it attractive to your guests. It should also be functional and comfortable. The type of furniture and accessories you purchase will depend on the size of your lounge area.

Some items you could choose include:

Sofas, armchairs and other seats

This should be one of your biggest priorities when furnishing your holiday let. You will want comfortable seating that looks stylish and attractive. It is also recommended that you choose seating that is easy to clean (for example, removable, washable sofa covers).

Lounge furniture

There are several different furnishings you could opt for, depending on the style of your property and the available space.

Your options include:

• A table or coffee table.
• A TV stand.
• Side tables.
• A mantlepiece.
• A bookshelf and books.

A television and a radio or music system

With the weather being so unpredictable (if your holiday let is located in the UK), providing entertainment for your guests is recommended. Choose an appropriately sized TV for the size of your room. You may also offer your guests access to subscription services, such as Netflix, Prime and Disney+, or the option to sign into their own services.

Lamps and other appropriate lighting

Appropriate and attractive lighting is recommended to create the desired ambience in your lounge area and ensure your guests can use the area at night time. You may opt for overhead lights and several lamps.

Other equipment

Some of the other equipment you could opt for in your living room includes:

• Board games.
• Artwork, e.g. paintings, photographs and pictures.
• Decorative accessories, e.g. candles, plants and ornaments.
• Pillows and cushions.

Most holiday lets offer a complete functioning kitchen to allow guests to prepare and cook food themselves. The number of appliances and equipment you purchase will depend on the size of the kitchen area and the available storage space.

Some of the equipment you may require in the kitchen includes:

Kitchen appliances

Some of the kitchen appliances you will likely need could include:

• A fridge and freezer.
• An oven, hob and a grill.
• A microwave.
• A food processor and/or blender.
• A dishwasher.
• A washing machine and tumble dryer.
• A sink with hot and cold running water.
• A ventilation system (e.g. exhaust fans and a ventilation hood).
• A splashback.

Seating areas

Although you may have a separate dining room, if your property has the space, you could also opt to add seating areas so that families and groups of friends can socialise in the kitchen.

You could opt for:

• A kitchen island with chairs.
• A breakfast table and chairs.

Storage areas

Your kitchen will need storage areas to store kitchen equipment and utensils and so that your guests have somewhere to store their food and beverages. Storage areas also help to minimise clutter.

Some of the storage you could opt for includes:

• Built-in kitchen units with cupboards, cabinets and drawers.
• Wine racks.
• Food storage containers.
• A spice rack.

Depending on your available storage space, there are several different pots and pans and other cookware you could purchase, including:

• Frying pans.
• Grill pans.
• Sauté pans.
• Baking trays.
• Roasting pans.

Although bakeware is not an essential purchase, you could opt to supply baking items if you have the available storage space.

Some pieces of bakeware you could purchase include:

• Bread pans.
• Muffin tins.

Eating utensils and accessories

You will need to provide enough eating utensils for the number of people your holiday rental can accommodate.

Some of the items you will need to purchase include:

• Glasses, including different-sized tumblers, a variety of wine glasses and cocktail glasses.
• A variety of cups and mugs, e.g. for tea, cappuccinos and lattes.
• Different-sized bowls.
• Different-sized plates.
• Eating utensils, e.g. forks, knives, spoons and serving utensils in different sizes.

Cooking utensils and accessories

Some items you will need to provide for food preparation and cooking could include:

• Chopping boards.
• Kitchen knives.
• Mixing bowls.
• Temperature gauges.
• A strainer and colander.
• Weighing scales, measuring cups and a measuring jug.
• Oven gloves.
• Baking paper, greaseproof paper and aluminium foil.
• Stirring spoons.
• Peelers and graters.
• Tin openers.

Tea and coffee-making facilities

Some of the facilities you may offer are:

• A coffee machine.
• Coffee accessories (e.g. coffee beans, flavoured syrups and coffee spoons).
• A teapot and cups and saucers.
• Tea, coffee and sugar.

Rubbish bins and recycling bins

You will need rubbish bins and recycling bins in your kitchen. You should also provide a food bin, so any food is disposed of properly. It is also recommended that you provide bin bags so that guests have the option to change the bins themselves.

Dining Area

Depending on the size of your holiday rental, you may provide a separate dining area where guests can eat their meals and socialise.

Some of the furniture and equipment you may require for your dining area includes:

• Dining table and chairs.
• Table cloths.
• Table settings, including mats and coasters.
• Serving platters and trays.
• A speaker, music player or radio.
• Decorative accessories, e.g. candles, plants, picture frames, rugs and decorative lights.

Hallway or Property Entrance

This will be the first impression your guests get of your property. Your entrance or hallway should be both functional and attractive.

Some of the items you may require include:

• A coat rack or cloakroom.
• A shoe rack.
• An umbrella stand.
• Lamps and appropriate lighting.
• A side table or cabinet.
• Decorative items, e.g. plants and artwork.
• A hat stand.
• A welcome pack.

If your property has multiple bedrooms, you will likely style each bedroom differently – particularly if you are setting up a family-friendly property where children are likely to stay. Your bedrooms should be stylish, comfortable, cosy and easy to clean. Your guests will want a good night’s sleep so keep this in mind when planning your bedroom furniture.

• Beds of different styles and sizes (e.g. King beds, Queen beds, double beds, twin beds and bunk beds).
• High-quality mattresses.
• Mattress toppers.
• High-quality duvets and pillows with (preferably white or cream) sheets and covers.
• Thick, full-length curtains or blinds.
• Additional blankets (for winter).
• Cushions and throws.
• Wardrobes and drawers so guests can store their personal belongings.
• Bedside tables.
• Ceiling lights and lamps.
• A dressing table.
• Mirrors (you may opt for multiple mirrors of different sizes, e.g. full-length mirrors and beauty mirrors).
• Televisions.
• A kettle and/or coffee machine.
• Coat hooks.
• Desks and desk chairs.
• Armchairs or other seating (if you have the necessary space).
• Slippers and dressing gowns.
• Rubbish bins.
• Hair dryers.
• Plenty of plug sockets.
• Décor items, e.g. artwork, candles and plants.

You will need to equip each bathroom with its own equipment and accessories.

• Baths with hot and cold running water.
• A power shower.
• Guest towels (you may need multiple sizes, e.g. bath towels, hair towels and hand towels).
• Towel racks.
• Toothbrush holders.
• Soap dispensers.
• Toilet roll holders.
• Extractor fans and other ventilation systems.
• Door locks.
• Toilet paper.
• Toiletries, such as hand soap, shampoo, conditioner and shower gel.
• Window blinds.
• Adequate lighting.
• Storage for guests’ toiletries (e.g. shelves or cabinets).

Outdoor Areas

If you have outdoor space, having a well-designed, attractive and functional outdoor space can make your business more attractive to potential guests and can allow you to charge higher prices. When planning your outdoor area, consider the space you have available.

The front of the property

This will be the first thing your guests see when they enter your property. You will also likely use pictures of the front of your property for advertising purposes.

Some of the equipment you could install or purchase includes:

• A well-maintained, wide path.
• A ramp (to make your property more wheelchair accessible).
• Automatic outdoor lighting.
• Parking spaces or a parking garage.
• Grass, flowers and plants.
• Hanging baskets.
• A welcome mat.

The back of the property

The garden at the back of your property is where your guests are more likely to spend most of their outdoor time. The outdoor area may feature a patio or decking area and a garden.

Some outdoor furniture and equipment you could purchase include:

• A fire pit.
• Outdoor furniture (e.g. dining table and chairs, lounge chairs, a swing seat, an egg chair).
• Outdoor lighting (e.g. fairy lights).
• A swimming pool.
• Water features, such as a pond or water fountain.
• Flowers and plants.

General Equipment Requirements

A computer or laptop and a booking management system

A computer or laptop can be used for marketing and advertising your property, making bookings, arranging equipment replenishment orders and any business and administrative tasks. You will also need a booking management system that automatically inputs bookings into a calendar and shows customers accurate information regarding the availability of your property.

A website is useful for advertising your business and could also act as your primary booking strategy. It should contain photographs and descriptions of your property, your location (and information about the local area), the available amenities and equipment and your customer reviews. Your website could also feature an option to make a booking online. Design your website to reflect your branding and ensure it is functional, easy to use and attractive.

Your guests will expect you to provide Wi-Fi. Because multiple devices will be connecting at one time, you will need a Wi-Fi system that is reliable, fast and can handle a higher capacity. Depending on the size of your property, you may require multiple routers or Wi-Fi boosters.

A payment system

The type of payment system you require will depend on your primary payment strategy. For example, if you accept online payments, you may require an online payment system or a way to track payments to your business bank account. If you offer bookings through third-party sites or a holiday letting agency, they will likely handle payments on your behalf.

A fully stocked first aid kit

You should keep a first aid kit on your property that your guests can use in the event of an accident or injury.

Some items you could put in your first aid kit are:

• Plasters of different sizes.
• Bandages and dressings of different sizes.
• Safety pins.
• Sticky tape.
• Disposable gloves.
• Antiseptic wipes.
• Antiseptic cream.
• Distilled water.

Cleaning equipment

Some of the cleaning supplies you may require are a vacuum cleaner, a sweeping brush, a mop and bucket, bleach, window cleaner, sanitiser, cloths, sponges and other cleaning supplies. All cleaning equipment should be clearly labelled and stored safely.

Typical Pricing

When you are creating your business plan, an important consideration you will need to make is your expected start-up costs and running costs. Calculating your expected costs allows you to determine your initial investment requirements, your pricing strategy and your profit goals.

There are multiple costs associated with setting up and running a holiday rental business. Some of these costs will be one-off initial costs that you will need to pay when you are setting up your business. Other costs will be ongoing costs you will need to pay regularly – usually weekly, monthly, quarterly or annually.

Some of the typical costs associated with a holiday rental business are:

Your holiday rental property

Unless you already have an appropriate property to use as a holiday rental, this will likely be your biggest expenditure. You will likely need to purchase or build a property, or you could opt to purchase an existing holiday rental business. There are multiple types of properties you could choose including apartments, cottages, lodges, houses and villas. The costs associated with purchasing your holiday let can vary based on several factors, such as the size of the land, the size of the property and the number of bedrooms. The location will also be a significant factor in determining the price of the property (coastal locations, city centre properties and properties close to an area or landmark of interest are likely to be significantly more expensive).

Renovation, refurbishment and installation costs

You may need to convert or refurbish your property to make it suitable for guests. For example, you may want to extend your property to add more bedrooms, convert existing rooms or install ensuite bathrooms. You may also need to install appliances, add plumbing and electricity and decorate your property to fit the aesthetic of your business and make it more attractive to potential guests. Renovation and refurbishment costs can vary depending on the level and scale of work required, from £500 for more basic work to £200,000 for more extensive work. Prices can also vary depending on the types and number of contractors and tradespeople you require.

Exterior renovations

You may need to renovate the exterior of your property to ensure it complies with safety and legal requirements. For example, you will need to make sure your exterior is safe and hazard free and you may need to make the necessary changes to ensure your property is accessible. For example, installing a ramp and widening pathways. You may also want to landscape your property or pay a gardener to make your grounds more attractive from the outside. You may also choose to install outdoor features, such as a swimming pool, a hot tub, a fire pit or a pond. You can expect to pay between £1,000 and £50,000 for exterior renovations, depending on the scale of work required.

Equipment and furniture

The type and amount of equipment you require (and the associated costs) will vary depending on the size of your holiday let and the type of business you want to set up. For example, a luxury holiday rental with higher rental prices will have more equipment requirements than a budget property. If you purchase an existing holiday rental business, you may be able to use some of the existing equipment and furnishings. However, if you are setting up your business from scratch, you will likely have more equipment requirements. You can expect to spend between £5,000 and £50,000 on equipment.

Maintaining, repairing and replacing equipment

Repairs, maintenance and replacements are ongoing costs you will need to factor into your budget. Cleaning and maintaining equipment and ensuring it is used correctly can extend its life, but repairs and replacements are still inevitable, as using unsafe equipment could be dangerous and could result in non-compliance with health and safety legislation. You will also need to replace items such as towels and bed sheets periodically (or if they become damaged or stained).

Running costs

These are the day-to-day costs associated with running your holiday let. Some running costs are paid monthly, and others are paid quarterly or annually. Your running costs can include electricity, gas, water, council tax and insurance. To maximise your profits, try to keep your running costs as low as possible.

Rental platform fees

If you advertise your business on a holiday rental site, such as booking.com or Airbnb, you will need to account for the fees associated with using this service. The fees can vary, depending on the booking site you choose, but you can expect to pay between 3% and 15% per booking. For example, if guests rent your property for a week for a cost of £700, you will likely pay between £21 and £105 in fees.

Letting agency fees

If a letting agent manages your holiday let on your behalf, you can expect to pay a commission for each booking that is made. On average, holiday letting agents charge between 15% and 25% in commission fees. For example, if your property is let out for £700, you can expect to pay between £105 and £175 in letting fees. However, for this price, the letting agency will market the property, manage bookings and offer guest support. Some letting agents also handle the cleaning and maintenance of the property and guest check-in.

A business website

Your business website is an essential advertising tool as it allows potential customers to find your property online and view pictures, descriptions and additional information. Your website may also have a booking system, allowing guests to make a booking or view your availability. Your website will need regular monitoring, updating and upgrading. You also need to make sure your website is secure, particularly if you will be collecting any customer information or banking details. You may also want to pay someone for search engine optimisation (SEO) to ensure your website ranks highly on search engines. You may choose to set up and run your website yourself or hire someone to do this for you. You can expect to pay between £20 and £100 per hour for someone to set up your website.

When creating your brand identity, consider how you want your business to be perceived by potential customers. When creating your brand, consider the type of holiday rental you are setting up and your typical customer base. Branding creates your business’s visual identity and aesthetic, your business name and your business website. You could hire a professional to help you with branding or do some or all of the work yourself. Branding can cost between £500 and £10,000, depending on the level of work required.

Advertising and marketing

To ensure your business attracts customers and creates maximum profits, you will need to spend money on advertising and marketing. It is recommended that you spend between 1%-3% of your annual turnover on marketing. For example, if your annual turnover (or your desired annual turnover) is £150,000, you should spend between £1,500 and £4,500 on advertising and marketing. You may need to invest more money when you initially set up your business or when you are trying to grow your business. To reduce your costs, capitalise on free marketing strategies, such as on social media.

Cleaning fees

Unless you use a letting agent that handles cleaning for you, you will need to ensure your property is thoroughly cleaned between guests, including washing towels and linens and remaking beds. You can expect to pay between £10 and £25 per hour for a cleaning service.

Business insurance

There are multiple coverage options available for a holiday rental business. Some types of coverage are optional, whereas others are mandatory.

Your coverage options include:

• Public Liability Insurance.
• Product Liability Insurance.
• Building and Contents Insurance.
• Malicious Damage Cover.
• Key Loss Cover.
• Guest Effects Cover.
• Business Interruption.
• Legal Expenses.

Prices can vary depending on your insurance provider and the level of coverage you choose. Prices typically start at £15 per month.

Typical Costs for Customers

Once you have calculated the typical costs associated with setting up and running a holiday let, you can then create your pricing strategy.

Your pricing will depend on multiple factors, including:

• Your location.
• The quality and size of your accommodation.
• Your facilities, amenities, equipment, furnishings and décor.
• The time of the year (prices will be higher during peak times).
• Your direct competition and the pricing of your competition.
• Your booking platform.
• Your set up costs and running costs.
• The length of time the customer makes a booking for (you may offer discounts for longer stays).

The best way to determine your pricing is to examine your target market. Focus on the typical guests you hope to attract and look at similar holiday lets that offer a similar standard of accommodation and similar amenities. Your prices will likely vary significantly depending on the season, for example, you may charge significantly more during the high season (such as school holidays and Christmas or if a local event is occurring).

The cost of a holiday rental can vary significantly, with some properties costing as little as £50 a night and others costing thousands of pounds for one night.

Safely Running a Holiday Rental Business

Implementing safety practices in your holiday rental is an important responsibility. Safety practices help to protect the health, safety and well-being of you, your staff and your guests.

Some safety practices you should employ in your holiday rental business are:

Childproof your property

If your holiday rental is marketed as a family-friendly property, you should childproof your property. This not only protects any young guests staying at your property, but it also can reduce your liability if an accident was to happen.

Some ways you can childproof your property include:

• Use plug covers.
• Avoid cords on blinds and curtains.
• Anchor furniture.
• Cover sharp corners.
• Provide a screen for fireplaces.
• Use pool and hot tub covers.

Focus on improving health and safety

Ensuring a safe environment for the guests is an important task for holiday rental owners. Ensuring your business has proper health and safety measures in place can protect you, your business and your guests.

Some safety measures you could implement include:

• Install secure handrails on staircases.
• Provide warnings for known hazards, e.g. low ceilings or uncovered ponds.
• Avoid trailing wires and cables.
• Perform risk assessments for swimming pools and hot tubs.
• Control the risks relating to legionella disease and other infectious agents if your property has a swimming pool or hot tub.

Implement pest prevention and control methods

Pests can be a major issue for holiday rental businesses, as you are not always in control of how hygienic your guests are and how well they store and dispose of food during their stay.

Some ways you can prevent pests are:

• Fill any gaps or holes in your building.
• Keep your external areas free from food, rubbish or vegetation.
• Encourage guests to dispose of food properly in closed bins.
• Keep your premises clean and tidy (i.e. offer a weekly or bi-weekly cleaning service and clean thoroughly between guests).
• Provide guests with sealed containers to store food.
• Use fly screens on open windows or doors.

Conduct risk assessments

Although not a legal requirement for businesses with fewer than five employees, risk assessments can help to eliminate risks and ensure safe practices in your holiday let. Risk assessments are particularly recommended if your business has any high-risk features, such as a swimming pool, hot tub, pond or steep stairs.

As part of your risk assessments, you should:

• Identify hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

You should keep physical records of your risk assessments as evidence of your commitment to safe practices.

Install security measures

Security measures should be implemented to protect your holiday rental from potential break-ins, thefts and damages. Security measures can also help your guests to feel safer.

Some security measures you can implement include:

• A CCTV system.
• Secure and reliable locks.
• An alarm system.

Properly maintain and set up equipment

Any furniture and facilities (such as beds, chairs and tables) in your holiday let and any equipment you supply for your guests to use (such as TVs, ovens and kettles) will need to be properly maintained, correctly set up and safe to use. You must protect your clients from accidents or injuries caused by equipment. You should also perform regular equipment inspections to ensure your equipment’s safety and help extend the lifespan of your equipment.

Check and maintain electricals, electrical outlets and plumbing

Not only can this save you money by avoiding damage, repairs and replacements, but checking and maintaining electricals and plumbing can help to protect your guests from harm. Implement a system for regularly checking outlets and plumbing and ensuring they are up to code.

Keep a fully stocked first aid kit

If a guest or employee has an accident or injury, it may not be serious enough to warrant medical intervention. Having a first aid kit that is checked and replenished regularly and is easily accessible to all guests is recommended.

Implement cleaning procedures

Having effective cleaning procedures is essential for your business. A cleaning schedule and cleaning policies should be in place that cover the cleaning of equipment, surfaces and indoor and outdoor areas. All furnishings and equipment should be inspected regularly, and you should document your cleaning and disinfection procedures. Your property will need to be thoroughly cleaned between guests and towels and linens will need to be washed.

Legal Requirements

Complying with legal requirements is essential when setting up and running a holiday rental business.

Failure to comply with legal requirements could not only result in an accident or injury, but you could also face consequences such as a warning, a fine, the forced closure of your business or, in serious circumstances, prosecution.

If your holiday rental is not located in the UK, the legal guidelines will likely differ. You will need to consider the laws and regulations of the country your business is located in. The legal guidelines listed below apply primarily to holiday rentals located in the UK.

Some of the legal guidelines you should be aware of include:

Comply with Furnished Holiday Lettings (FHLs) regulations

In order to qualify as an FHL, there are specific guidelines you must comply with:

• The property must feature sufficient furniture that visitors are entitled to use.
• The property must be available for letting for at least 210 days in the year.
• The total of all lettings that exceed 31 continuous days should not be more than 155 days in the year.
• The property must be let to the public for at least 105 days in the year (not including longer terms of more than 31 continuous days).
• The property must be situated in the UK or the EEA.

Ensure you have an appropriate mortgage

If your holiday let property currently has a mortgage, you must ensure your mortgage lender and the conditions of your current mortgage allow you to let the property out. If your mortgage does not allow this, you may need to apply for a new mortgage, such as a buy-to-let mortgage.

Apply for planning permission

If you want to alter the layout of your holiday let property, make any structural changes, build an extension or create a new building, you may need to apply for planning permission from your Local Planning Authority (LPA). You will need to contact the LPA at your local council to apply for planning permission. Keep in mind that approval can take several months, so ensure you apply for planning permission in advance.

Apply for a television licence

If you use any televisions in your property, you will need to apply for a TV licence . Because you are operating a holiday rental business, if any TVs are accessible to your guests, you will need to apply for a specific TV licence (a Hotel and Mobile Units Television Licence).

Install carbon monoxide detectors

If your holiday let has any solid fuel-burning appliances, such as log burners or open fires, you are legally required to fit a carbon monoxide detector in any room where these appliances are located. You are also required to fit carbon monoxide detectors in any rooms that have gas or oil appliances (e.g. a gas oven).

Install smoke detectors

Smoke detectors should be installed throughout your holiday let and should be checked regularly to ensure they are working. Smoke detectors should be installed on every floor of your property.

Comply with the Equality Act 2010

The Equality Act requires all holiday properties in the UK to have a written accessibility statement that outlines the facilities and services in and around the property. This document must be clearly displayed on the property and shared with all guests before their arrival. You also need to make any reasonable adjustments to your property to make it more accessible to people with disabilities, for example:

• Fitting ramps.
• Widening doorways.
• Upgrading your lighting.
• Making your website more accessible to people with disabilities, e.g. having text-only versions of each page.

Comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988

These regulations apply to all upholstered furniture in your holiday rental, including furniture, beds, garden furniture, cushions and pillows. You must ensure all furniture (whether purchased new or second-hand) meets the specified ignition resistance levels and commercial fire safety standards. The regulations do not apply to furniture made before 1950 (unless significant reworking or upholstering has taken place).

Ensure your water supply is fit for human consumption

Under the Private Water Supplies (England) Regulations 2018 , you must ensure that the water and filter system on your property is safe and fit for human consumption and use. You will need to have your water supply tested every five years to ensure compliance. Contact your local authority for specific regulations relating to your property.

Apply for a Short-Term Let Licence (Scotland)

If your holiday let property is located in Scotland, you will need to apply for a Short-Term Let Licence .

There are four different types of licences:

• Secondary Letting: Letting accommodation that isn’t your principal home.
• Home Letting: Letting your principal home when you are not there.
• Home Sharing: Letting part of your principal home when you are not there.
• Home Letting and Home Sharing: Letting all or part of your principal home when you are living there and when you are not living there.

Comply with receipt or invoice requirements

You will likely make it standard that you provide all customers with a receipt or invoice. Even if you do not make this standard practice, many of your customers will request a receipt.

There are certain pieces of information you should include:

• The word ‘invoice’ or ‘receipt’ and a unique invoice number.
• Your business name and address.
• The client’s name and address.
• A brief description of your work.
• The total you are charging the client and when the payment is due.
• The payment method.

Comply with fire regulations

As the business owner, you are responsible for fire safety measures on your property. There are multiple fire regulations you must ensure you comply with.

For example:

• Perform a fire risk assessment.
• Inform your local fire authority that you will be operating a holiday rental.
• Comply with the Regulatory Reform (Fire Safety) Order 2005 .
• Implement any necessary fire safety measures.
• Implement emergency procedures and ensure these are clearly displayed on the property.

Comply with gas safety regulations

If you have a gas boiler you will need to have it inspected by a gas-safe engineer. If your equipment is deemed safe to use and complies with government requirements, you will be issued a Gas Safety Certificate. You will need to display your gas certificate clearly for your guests and other visitors to your business to see. As a holiday rental business, you will require an annual gas safety certification.

Comply with the Electricity at Work Regulations 1989

The Electricity at Work Regulations state that any workplaces that use electricals must construct electrical systems in a way that prevents danger, maintain electrical systems to ensure they are safe, ensure electrical equipment is checked by a competent person annually and conduct Portable Appliance Tests (PAT). This includes any electrical equipment inside and outside your property.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. These regulations apply to any incidents that involve guests and staff.

Prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your business, who is responsible for specific tasks and how and when these tasks are completed. Follow the recommended tips from the Health and Safety Executive when creating your health and safety policy. You should make your policy easily visible to any guests.

Implement safety measures

Safety measures can help to protect your business, your employees, your customers and your equipment.

Some safety measures you should implement include:

• Suitable fire prevention, fire detection and firefighting equipment should be provided and maintained.
• Entrances and fire exits must be kept clear of obstructions.
• A first aid kit should be kept on site.
• An emergency contact name and number should be displayed.

Comply with the General Data Protection Regulations (GDPR ) and the Data Protection Act (DPA)

If you accept online bookings, you must comply with both pieces of legislation when storing or sharing personal information, such as your customers’ personal information, contact details and banking information. You must also apply for a Notification to Process Personal Data Licence. You will also need to apply for a licence with the Information Commissioner’s Office and renew your registration every year.

Comply with employment legislation

If you employ any staff (such as cleaners or check-in staff), you must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Register your business

Your business must be registered with HMRC before you begin operating. You can choose to register as a sole trader or as a limited company. You will also need to register your business name and any other relevant information.

Register for self-assessment tax

This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.

As part of your tax responsibilities, you must:

• Record all forms of income and expenses.
• Complete an annual self-assessment tax return.
• Register for VAT if you earn above the threshold (currently £85,000).
• Pay National Insurance contributions.
• Keep a record of your business accounts for the previous five years.

Positives of Owning a Holiday Rental Business

Starting up a holiday rental business can be rewarding in many ways.

Some of the main pros associated with this type of business include:

Design your perfect holiday rental

The majority of people who set up a holiday rental are passionate about the tourism industry, have dreamed about working in it for years or enjoy staying at holiday rentals, B&Bs and hotels themselves. Opening your own holiday rental business allows you to design your dream business, from the atmosphere, décor and feel of your holiday rental, to your facilities, your advertising strategy and any additional services you offer.

Choose your target customers

As you are designing your business yourself, you can create your business plan with your desired market in mind. This could be the customers you feel will maximise your profits, the customers you are most comfortable with or those that are most likely to fit your brand and aesthetic. Choosing your own target customers also allows you to design your accommodation with them in mind and set your pricing accordingly.

Potentially low start-up costs

If you already own a suitable property, a holiday rental business requires minimal investment. You may only need to pay for décor and furnishings, any permits and legal requirements and your advertising costs. Low start-up costs, particularly compared to other businesses in the tourism industry, allow you to begin turning a profit more quickly and can make your first year in business lucrative, even though many other tourism businesses don’t begin to make a profit until after the first year.

It can be rewarding

A holiday rental business can be personally and financially rewarding. It can help you to take a step back from the traditional 9-5 working hours and, once your business is established, allows you to run your business with minimal input. You can also build positive relationships with your guests and get to know people from all over the UK and the world. If you are passionate about what you do, your business will likely not feel like work. For people who enjoy face-to-face interaction and spending time with other people, a holiday rental business can be very rewarding.

Low time investment

Once you have set up your holiday rental, you can run your business with minimal input. Guests will not expect any staff to be onsite, meaning all you will need to do is prepare the property for your guests. You could even use a holiday letting agent who will arrange listing your property online for rental, handle bookings and payments and arrange cleaning and maintenance. You can be as involved as you want with the day-to-day running of your business and can earn an income with very little work.

It can be lucrative

As your business grows and your holiday rental gains exposure and becomes more highly reviewed, you will have the potential to earn a higher income. Your holiday rental can begin making a good profit almost immediately. As your business grows in popularity, you can also raise your prices and scale up your business. A holiday rental business has a high-income potential and, with a solid business plan, can be extremely lucrative.

A scalable business

A holiday rental business can have a simple business model, making it easy to set up this type of business. If you want to grow your business, this type of business is highly scalable, as you will already have a solid business plan that is easily transferrable to other properties. You can open additional holiday lets in the same area or other locations and significantly increase your profits. High demand for your business and high scalability gives you great opportunities for growth.

Choose your advertising and selling strategy

You can choose whether to set up your own website, advertise on booking sites, such as Airbnb or Booking.com, or use the services of a holiday letting agency. Having the ability to advertise your property on multiple platforms can increase your customer reach and increase your revenue streams. You can even change your selling strategy as your business grows and evolves.

Easily gain exposure

The rise of social media and holiday accommodation sites makes it easier than ever for you to gain exposure. Particularly if you are able to take good photographs or are tech-savvy. Gaining exposure online is an easy and effective way of growing your business and increasing your profits with minimal or no costs.

High demand

People in the UK take on average 3.4 holidays per year, including holidays abroad, staycations in the UK and weekend breaks. With holidays being so popular and people willing to spend on booking holidays, the demand for holiday rentals is higher than ever. High demand makes it more likely that your business will succeed and will allow you to earn a higher profit margin.

Guest loyalty and recommendations

Holiday rental properties in the UK are particularly popular for staycations. This makes it more likely that people will return to the same property multiple times (if they had a positive experience) or will recommend your holiday rental to their friends and family. Guest loyalty is an effective way to grow your business and maximise your profits.

Be part of the local community

Setting up a holiday rental is a great way of connecting with the local community, particularly as you will be bringing increased business to the local area. You can partner with local businesses, including pubs, restaurants and shops, to advertise each other’s businesses and offer discounts and can create positive personal and business relationships with fellow business owners and people living in the local community.

Pick and choose your guests

You will have the option to choose which bookings to accept and decline any guests you do not want staying at your property. For example, some holiday rentals refuse to accommodate hen and stag parties. Other properties operate as adults only or have a minimum age requirement (for example, they do not accept bookings from guests younger than 25).

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of holiday rental you want to set up, and your property’s location. You can make the best decisions for you and your business.

Negatives of Owning a Holiday Rental Business

Although owning a holiday rental business can be rewarding in many ways, there are some potentially negative aspects to this type of business, for example:

Demanding guests

Some guests can be extremely demanding and may not understand that holiday rentals operate differently than hotels. They may expect you to always be available to help them and may expect your property to have the same amenities that they have experienced in hotels they have stayed in. To avoid negative reviews, you may feel like you have to adhere to the demands of difficult guests, which can impact your own personal life.

Bookings can be inconsistent

It can be difficult to plan your finances and predict your profits when you work in the tourism industry because bookings can be very inconsistent, with some times of the year being significantly more popular than others (for example, summer and Christmas). There could be certain times of the year when you have no or very few bookings and this can make it difficult to make your business a success long term. Although you can charge higher prices at peak times, this may still not be enough to make up for a lack of bookings at other times.

Negative reviews

Although the majority of customers leave honest reviews, some customers are difficult to please and will leave a negative review because of the smallest complaint (even if it is something outside of your control). Some customers even leave negative reviews because they didn’t read the property description properly (for example, complaining about the distance from the local town even though that is clearly stated). It’s also possible for people to leave fake reviews, which can be extremely damaging to a business and can be very difficult to remove, even if you know they are fake. Negative reviews can also result in customers avoiding your business.

Complying with legislation

There are many different pieces of legislation and legal guidelines you will need to comply with. Not only can this be complicated and time-consuming, but any non-compliance (even if this is accidental) can be heavily punished with a fine, the forced closure of your business or even a prison sentence. A holiday rental business can have high liability which can be a lot of stress and pressure on a business owner.

Potentially high start-up costs

If you already own the perfect property that already has the correct facilities installed, start-up costs can be low. However, if you need to purchase a new property or make extensive renovations to your existing property, this can be extremely expensive and time-consuming. It can make setting up your business a long process and result in you needing to take out expensive business loans, which can lengthen the time before you begin turning a profit. You will also need to account for furnishing your property and purchasing equipment.

If there’s a problem, you need to fix it

Unless you work with a letting agent, if there is an issue, no matter what time of the day or night it is, you will be responsible for fixing it. If your property has a water leak, the electricity stops working or there is another major issue late at night, you will be responsible for fixing it to avoid a negative review from the guests or to avoid needing to give them a refund. It can be difficult to manage stressful situations and solve major issues yourself, especially if they occur at inconvenient times.

It can be competitive

Not only are you competing with other holiday rentals, but you are also competing with hotels, B&Bs, caravan parks, holiday parks and other holiday properties. Having multiple businesses to compete with can make it difficult to establish your business and earn an acceptable profit margin.

It can be difficult to make your business succeed

If there are already established holiday rentals and hotels operating in your area, this can make it extremely difficult to grow your own business and make a success of it. Potential guests are more likely to choose a holiday property that is highly rated, that they have used previously or that has been recommended to them. Setting up a holiday rental business and making it succeed can be more difficult than people realise.

High responsibility

As the business owner, you will have a lot of responsibility, including ensuring the financial success of your business, ensuring the health, safety and hygiene of your property and advertising and marketing. Although you may have few responsibilities regarding the day-to-day running of your business, you will still be responsible for the success of your business and for ensuring the safety of your guests, which can be stressful.

Issues out of your control

This can be one of the most frustrating aspects of running a business, as things that are outside of your control can have a negative impact on your business and your profits. For example, a flood in the local area, local train strikes, or an electricity outage can prevent you from properly running your business, which could not only affect your profits but also result in negative reviews from customers or the cancellation of bookings.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Planning Your Holiday Rental Business

An effective and well-designed business plan is essential to the success of your holiday rental business. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

When creating your business plan, ensure it contains information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

Some of the factors you will need to consider when creating your business plan are:

The type of holiday rental you are going to set up

This is one of the most important considerations you will need to make. There are many different types of holiday rentals and you will need to consider the type of business you want to set up.

• Will you set up a budget, mid-market or luxury holiday let?
• What type of property will you choose (e.g. apartment, townhouse or villa)?
• How many guests will your property cater for?
• What will the bed configuration be (e.g. double, twin, bunk beds, king-sized beds)?
• What type of check-in experience will you offer?

You will also need to decide whether to use a property you already own as a holiday rental or whether to purchase a new property with the intention of renting it out.

This is another important consideration, as many people searching for a holiday let will have a specific location in mind (e.g. Cornwall) or an idea of the type of location (e.g. coastal). Your location will have a significant impact on the types of guests you are likely to attract. It will also impact the purchase cost of the property and the rental value (i.e. how much you can charge your guests).

Your primary booking strategy

This is a key consideration and can have a significant impact on the types of customers you attract and the success of your business. On what platforms and websites will you list your property? How can potential guests make a booking? Will you use a holiday rental agency? Will you list your property on third-party websites, such as Booking.com? Will you have your own website? Whichever options you choose require forward thinking before you begin setting up your business. You could choose to utilise a combination of different selling approaches in order to increase your sales. Your primary booking strategy could also change as your business grows.

Your target market

Determining your target market is a key step in helping your business succeed. You can choose to target budget, mid-market or luxury customers. There are multiple factors that can influence your target market, including the quality of your accommodation and the facilities and amenities, your price points and your advertising. Once you have identified your target market, you can then focus on how to attract these customers to your business.

Your competition

When analysing your competition, you shouldn’t just focus on holiday rentals that operate in your area, but also similar holiday lets that operate in similar locations around the country (e.g. other properties that are located near the coast in different areas of the country). Analysing your competition allows you to look at what they do well and what you think can be improved upon. Look at your competitors’ facilities and equipment, the services they offer, their pricing, their target market and the number of employees they have. Analysing your competition also identifies whether there is space in the market for your business.

Your brand and your unique selling point (USP)

Creating your brand is a key way to ensure you stand out from your competition. Branding can help you to focus your target audience, attract customers and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity, designing your premises and website and creating a brand story. Your USP can also be part of your brand and can help your business stand out from your competitors. Consider what makes your business special and how this fits into what defines your business.

Your marketing and advertising strategies

Marketing and advertising are especially important when you first open your holiday rental business. Your marketing strategy needs to be effective and budget friendly. Consider your target customers and the best way to reach them.

Some ways you can market and advertise your business are:

• Build a functional and attractive website.
• Advertise on multiple platforms and forums.
• Partner with local businesses and local events.
• Offer discounts to returning customers.

The equipment and amenities you will offer

This is an important consideration as the furnishings, equipment, amenities and facilities available to your customers can have a significant impact on your typical customer base and your start-up costs. Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of holiday rental business you set up and how big your premises is. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment.

Your start-up costs and running costs

Consult the list above to help you calculate the approximate costs of setting up and running your business. Determine what equipment you need and the amount of equipment, as well as the cost of your property, to help you determine your start-up costs and what your initial investment requirements will be. You can then calculate whether you can finance your business yourself or whether you need to source outside investment, for example, from a bank. Determining your start-up costs and running costs can also help you to create a budget and predict when you will begin to turn a profit.

Financing your business

Consult the list of start-up costs and running costs above to determine what capital you will require. Can you finance the business yourself or will you need to source outside investment? You will also need to calculate when you are likely to begin turning a profit. If you require outside investment, consider whether getting a mortgage from a bank or another financial institution would be beneficial.

Your pricing policy

How will you price your property? Will you charge per day or per week? Will certain times of the year be more expensive (e.g. school holidays and bank holidays)? Will you offer any discounts or special offers? As your property grows in popularity, your pricing policy may change. Consider the pricing of your competitors and your running costs when setting your own prices.

Your sales forecast

How many bookings are you realistically likely to get? Are there certain times of the year that are likely to be busier than others? What are your weekly, monthly and annual sales forecasts? You can analyse the booking forecasts of similar businesses and look at how bookings vary throughout the year to estimate demand. As your business grows, your sales forecast is likely to change.

Your strategy for growth

Your strategy for growth is the actions you will take to realise your goals for expansion and any potential challenges your business could face and how you will avoid or overcome them. This can help to make your business more successful.

Potential challenges could include:

• Lack of bookings during the off-peak season.
• High cleaning and maintenance costs.
• A lack of returning guests.

Some potential strategies for growth include:

• Offer special discounts during off-peak times.
• Raise your prices during the peak season.
• Increase your marketing and advertising.

Your business summary

Your business plan should include a detailed overview of your business, including the type of holiday rental you are setting up, your typical customer base, your equipment requirements and your business goals.

Your business goals

Your business goals or objectives are an essential part of creating your business plan. Your business objectives highlight the targets and goals of your holiday rental business and help you to create a one-year, three-year and five-year business plan.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Check you have complied with all legal requirements

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

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Home > Industry Templates > Vacation Rental Business Plan Revenue Projection

Vacation Rental Business Plan Revenue Projection

This vacation rental business plan revenue projection template is the first step in starting a vacation rental business plan, and provides a quick and easy method to estimate revenue generated by an vacation rental business for the next 5 years.

In addition an annual inflation rate to be applied to the weekly rentals is set.

The vacation rental template calculates the number of equivalent weeks each year the property is let for (treating weekends a two days), and works our the occupancy percentage, and average weekly rental income.

Additional sundry revenue types are allowed for to give a complete revenue projection for the five year period.

Vacation Rental Business Plan Revenue Projection Download

The vacation rental business revenue projection template is available for download in Excel format by following the link below.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Free Holiday Let Tenancy Agreement Template UK

More than 165,000 property investors are generating income from their second homes by letting them out to holidaymakers, according to new research by an insurance firm.

We know of a number of householders in the Wimbledon area who let their homes to players, officials and tennis fans for three weeks each summer when the grand slam tournament is taking place in SW19.

And the growth of websites such as HouseTrip and AirBnB (who had had 4 million hosts at the end of 2020) – which connect users from all over the world who are looking for short-let accommodation – indicates the trend for generating income from holiday rentals is growing. In fact, HouseTrip co-founder Arnaud Bertrand has said:

“Our target audience is rapidly catching up to the fact that they’re getting great value by renting a home as opposed to staying in a hotel. I see a not too distant future where our category will be the most popular type of travel accommodation.”

Private landlords who jump on the home-from-home bandwagon need to be aware that they must get their short-term guests to sign a holiday letting agreement. A Holiday Letting Agreement Forms part of a landlord’s raft of necessary paperwork. This is why Property Division is pleased to offer you a free agreement. Simply print off two copies, sign one and hand it to your tenants, then get your tenant or tenants to sign the other and hand that agreement to you.

However, ASTs do not cover agreements where tenants pay more than £100,000 in rent per year or when a limited company rents a residential property.

The latter often involves companies renting residential accommodation and letting the property to their employees, usually under a licence agreement (as opposed to a tenancy).

If you like a custom, completely personalised tenancy agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.

Download CUSTOM Tenancy Agreement Form

Alternatively, if you just want to download a generic holiday let tenancy agreement template, use the link below.

Download GENERIC Holiday Let Tenancy Agreement Form

While the employee will usually pay rent and other costs to the landlord, ultimately the company is liable.

A Holiday Let Tenancy Agreement typically includes the following information:

• Names of the landlord and tenant
• Property address and description
• Rent amount and payment details
• Duration of the tenancy
• Purpose of the tenancy (e.g. holiday letting)
• Inventory of items provided with the property
• Maintenance and cleaning responsibilities
• Restrictions on the use of the property (e.g. no pets allowed)
• Cancellation and termination conditions
• Insurance requirements
• Security deposit arrangements
• Liabilities of the landlord and tenant
• Complaints and dispute resolution procedure
• Jurisdiction and governing law

Note: The specifics of a Holiday Let Tenancy Agreement may vary depending on the jurisdiction and local laws. It’s important to have a clear understanding of all the terms and conditions before signing the agreement.

Download this free holiday let tenancy agreement template, by clicking on the banner above.

……………………….

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TO THE FULLEST EXTENT PERMISSIBLE PURSUANT TO APPLICABLE LAW, PROPERTY DIVISION DISCLAIMS ALL LIABILITY TO YOU AND EVERYONE ELSE IN RESPECT OF THE CONTENT ON THIS SITE AND ALL SERVICES PROVIDED THROUGH IT, WHETHER UNDER ANY THEORY OF TORT, CONTRACT, WARRANTY, STRICT LIABILITY OR NEGLIGENCE OR OTHERWISE, AND WHETHER IN RESPECT OF DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR SIMILAR DAMAGES, EVEN IF PROPERTY DIVISION WAS ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

The information presented on this site should not be construed as legal or any other professional advice or service. You should consult with a professional adviser familiar with your particular factual situation for advice concerning specific legal or other matters before making any decision.

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10 Powerful Excel Project Management Templates for Tracking Anything

P roject management templates are an essential tool for replicating successful projects. With Microsoft Excel's free templates, you can turn your simple spreadsheets into powerful project management tools.

In this article, you'll find some of the most useful and free Microsoft Excel project management and project tracking templates you'll want to use for your next project.

Microsoft Excel Project Timeline Templates

Let's take a look at the best Microsoft Excel project management templates.

We cover both native and third-party templates here. To find the pre-installed Excel spreadsheet templates, open Excel and search for the respective keyword from the New document screen.

If you're already in Excel, go to File > New to bring up the template search. Check the Managing Microsoft Excel Templates section below for more details.

Excel comes with several timelines and Gantt chart templates provided by Microsoft, but it also integrates templates from Vertex42, one of the most popular third-party resources for spreadsheets.

1. Work Plan Timeline

The Work Plan Timeline template is suitable for a basic project with multiple phases. When you enter your data into the worksheet, the roadmap will update automatically. This template comes pre-installed in Microsoft Excel 2016 and up.

2. Date Tracking Gantt Chart

Gantt charts are a staple in every project manager's toolset. They help you visualize the flow of your tasks and track progress.

With this template, you can create a comprehensive Gantt chart with minimal effort. Just enter each task, complete with a description, who it's assigned to, a percentage to indicate progress, a start date, and allocated days until completion. This template is a Microsoft Excel default.

3. Milestone and Task Project Timeline

If you want to integrate milestones into a basic timeline, this template provided by Vertex42 is ideal. It combines the best elements of a Gantt chart, i.e. the visualization of the task flow, with milestones hovering above the timeline.

Just fill in the respective tables to populate the visual. You can find this template by searching in Excel.

Excel Project Plan Templates

A project plan is a document that may require Excel charts, but is otherwise composed in Microsoft Word. For basic projects, however, you may get away with only a Microsoft Excel document.

4. Simple Gantt Chart

When you search Excel's template repository for project plan templates, you'll mainly find different Gantt chart variations, including this Simple Gantt Chart from Vertex42. What sets it apart from the Gantt chart above is the inclusion of project phases. This template is included in Microsoft Excel.

5. Event Planner Template

A project plan really isn't something you typically put together in Excel. However, if you are planning a small project, like a party, you just need a one-page template that lists the essential tasks and lets you define a schedule and a budget. This template from Office Templates Online is a great start.

Excel Project Tracker Template

A search for a tracker will bring up a wild mix of personal and business-related Excel spreadsheet templates for tracking. However, you can narrow down your search by selecting categories that relate to the project management task you're dealing with.

6. Activity-Based Cost Tracker

This tracking template can help you get an overview of direct, indirect, and general and administrative product costs.

7. Project Tracking Template

This Vertex42 template is essential if you are handling multiple different clients, projects, and/or deliverables. It combines project details, expenses, task statuses, and due dates.

Business Plan Templates

Microsoft Excel 2016 had its own category for business plans. You could search for the keyword business and select the Business Plans category on the right.

In Excel 2019 and onwards, you can perform either query, but the latter misses some templates, while the former might be overwhelming. We recommend looking into the following.

Business Plan Checklist

Creating a business plan can be a complex project in and of itself. This checklist will help you cover all your bases by guiding you through the process using a SWOT (strengths, weaknesses, opportunities, threats) analysis.

Note that you'll find two similar templates in Excel, but they're both identical SWOT analysis checklists, differing only in their formatting.

Startup Expenses

This template is a great starting point for a budding business owner who needs some help with projecting the costs of their endeavor. The template will guide you through the most common assets and services your new business might require.

Once you've filled in all the potential expenses, you'll have a much better idea of how much funding you'll need to raise to get your business up and running. For more business plan templates , take a look at our dedicated article.

Search for Online Templates

Couldn't find the exact project management template you need in Excel? Turn to a third-party online resource for a wide selection of Excel spreadsheet templates. We recommend the following sites.

This website has a few great project management templates for Microsoft Office 2003 and up. The site notes that its templates are mostly related to project scheduling. Anything more complicated might require Microsoft Project or other project management software.

On the page dedicated to project management , you'll find a list of useful material, including, but not limited to, the following:

• Project Budgeting
• Critical Path Method

Each page contains a quick rundown of what the template does, one or more templates, and further tips and tricks for the respective project management tool. It's a great resource for budding project managers.

TidyForm has a respectable selection of Microsoft Excel project management templates. The most popular categories are listed on the homepage. If you can't immediately spot what you need, switch to the Business section or try the search feature.

When you scroll to the bottom of a section, you'll see a list of popular categories and related categories. This can be helpful when trying to find just the right template. We recommend the following pages:

• Project Budget
• Project Proposal
• Work Breakdown Structure

Still looking for the perfect template? You might have to create custom Excel templates to get exactly what you want.

Managing Microsoft Excel Templates

First, let's see what templates you already have installed in Microsoft Excel. For the purpose of this demonstration, we've used Excel 2019, but the procedure is similar in Microsoft Office 2013 and Office 2016.

Default Templates

When you start up Microsoft Excel, the first window you see will contain a search field for online templates. When you're starting from an existing workbook, go to File > New to arrive at the same view.

Microsoft Excel comes with a selection of pre-installed templates. They are listed underneath the search field. You can pin your favorite ones by clicking the respective symbol in the bottom right of the listing.

Search Online for More Project Templates (Excel 2016)

Searching for the type of template you need is the fastest way to locate it. For example, if you search for the term "project," you may also see template categories listed next to the templates that match your search. The category feature no longer appears in Excel 2019.

Narrow Down Your Search (Excel 2016)

A neat feature is that you can narrow down your search by selecting multiple categories. This helps you exclude templates that may match your keyword, but not your desired category. On the downside, you may find that the perfect template is not available in Microsoft Excel.

Preview & Create Your Template

When you click a template, you'll see a preview with a brief description of what the template provides. You can also pin the template from its preview; the symbol sits in the top right.

To download and use a template, click the Create button, which will open a new Microsoft Excel workbook with the template pre-filled.

Template Ready, Set, Go

Now that you have all the project management templates you could ever need, maybe you're interested in additional tools, tips, and tricks. For example, you could build a custom interactive Excel dashboard to manage data within your projects. The possibilities are endless.