You would be surprised how often we get asked “Is holiday letting in the Cotswolds a good investment?” or “How do I know if holiday letting is the right investment opportunity for me?” The short answer is, it absolutely is a great investment, but success depends on much more than simply owning a property in a desirable location.

With the Cotswolds being one of the most sought-after areas for holidaymakers and A-listers, thanks to its picturesque villages and world-class dining options, owning a holiday let here has never been more in demand with property owners looking to capitalise on the area’s popularity.

The right property, in the right location, with the right pricing and presentation coupled with the best holiday letting agency can generate attractive holiday-let income while giving owners the flexibility to enjoy the property themselves. However, it’s important to note that holiday letting also comes with its costs and responsibilities.

Short-term vs long-term letting: Which is best?

Deciding on whether to do short-term or long-term holiday letting is an important decision to make at the start of your letting journey and is a question we also get asked quite often. Deciding on the preferred route will come down to your personal preference and a number of factors.

A long-term tenancy can offer simplicity and predictability. You will generally have fewer changeovers and less day-to-day involvement in the property, and your rental income should be quite straightforward to forecast.

Short-term holiday letting offers something slightly different. There’s the potential to achieve a higher nightly rate, while still having the flexibility to enjoy the property yourself when requested. It is important to note that income can vary depending on season, demand, pricing and occupancy. You will however need to take into account some property management costs from cleaning, laundry, maintenance, furnishing and overall guest management.

To calculate the best option financially for you, we would recommend looking at the potential net return, alongside how much time and involvement you’re happy to put in.

For some owners, the flexibility and potential income of short term holiday letting will make perfect sense. For others, the predictability and relative simplicity of a long-term tenancy may be the better fit.

What makes a successful holiday let?

One of the biggest misconceptions about holiday letting is that a beautifully presented property will automatically be a successful one. In reality, there are a number of factors that contribute to whether your holiday let will be successful or not:

Location:

When looking at the location for a holiday let cottage in the Cotswolds, one of the main things we recommend considering is being within walking distance from a good country pub, cafe or restaurant. The food in the Cotswolds is one of the biggest draws, so being close to popular food attractions is well worth considering.

That said, a peaceful rural cottage can also be appealing to many. If the property offers privacy, beautiful views, or a lovely private garden, this can become part of the experience and a big draw to those trying to escape the hustle and bustle of life.

Character:

This is something that Cotswold properties already have a head start on. The properties in the area are known for their honey-coloured stone, exposed beams, open fireplaces, character features and beautiful gardens. However, character is only part of the picture – the best holiday homes combine the original features and everything a guest would need to have an unforgettable and comfortable stay.

Comfort and quality:

Over recent years, consumer expectations have reached new highs. Guests know what they want from a great holiday which means it’s even more important to keep on top of your home’s facilities and cleanliness.

A comfortable bed, well-equipped kitchen, good bathrooms, reliable Wi-Fi and attractive interiors are now considered essentials rather than luxuries. We also say that the smaller touches make the most memorable stays – including welcome hampers, luxury bed linen, fans when it’s hot and family board games, the list is endless!

Space:

Please don’t assume that you need to have a 5-bedroom, 5-bathroom property to be successful in holiday letting. Different sized properties’ offer different experiences and it’s important to note that not all guests are the same. Instead, consider how the house works for the number of guests it can hold. Is it easy for the guests to find space to be together in while also giving everyone the room to escape when needed?

How Much Can I Earn From Holiday Letting?

This is probably one of the first questions we get asked by potential holiday let owners. From initial enquiry, our team will be able to take you through your potential earnings by taking into account multiple factors including property size, location, facilities and amenities, while also taking into account the different seasonal demands. The below image is a useful starting point to provide you with an initial estimation only.

At StayCotswold, we use a dynamic pricing model to reflect demand, to flexible arrival and departure dates, as well as special offers to sell late breaks.

If you would like to go ahead with property letting or learn more about your possible earnings, then check out our holiday let advice or call 01993 259444 to speak to our holiday let experts.