A holiday let in the right location can generate steady passive income while giving owners flexibility in how they use their property. Many investors now look to make money from holiday let bookings because online platforms connect them directly with travellers year-round.
Properties near beaches, city centres, or major attractions achieve stronger returns, especially when supported by clear pricing strategies and reliable guest services that keep occupancy rates consistent.
What is a good yield on a holiday let?
Before investing in a holiday property, it’s important to understand potential returns. Many owners use rental yield as a benchmark when assessing opportunities in the holiday rental market.
What is a holiday let yield?
A holiday let yield measures the return on investment from your property, showing profit after expenses. It largely depends on the occupancy rate and how well you adjust to seasonal pricing. Homes in high-traffic tourist areas usually achieve higher yields than long-term rentals, making them attractive options for investors seeking reliable income.
How to calculate a rental yield
Net rental yield is calculated by dividing profit by the initial purchase price:
ROI = (Annual income – Annual cost (maintenance, insurance, mortgage repayments, etc.)) ÷ Property purchase price × 100.
A yield of 6% or more is considered strong. Learn more in our guide to calculate ROI on short-term rental properties.
Factors affecting your holiday let income
Several elements shape how much you can realistically earn, including property type, location, seasonal demand, and the size of your mortgage. These factors should be considered carefully when entering the holiday rental market.
Geographical factor
Location has a direct impact on both demand and profit. A holiday home near the beach, beside a landmark, or within walking distance of amusement parks will usually achieve higher nightly rates and stronger booking levels. Easy access to transport hubs and well-known tourist districts supports steady occupancy throughout the year.
Quieter destinations, however, should not be overlooked. Regions away from crowds attract travellers seeking peace and unique experiences, and those guests often stay longer. Aligning the property with this niche means owners can attract a loyal market.
Property types and amenities
The size and design of a property strongly influence how appealing it is to guests. Large houses give families and groups the space they need, while smaller apartments usually attract independent travellers.
The details also matter. Extras such as secure parking or outdoor seating raise guest satisfaction. At the higher end, features such as a pool or a spa bathroom can set a property apart, making it a stronger investment in a crowded market.
These features justify higher nightly rates and encourage repeat bookings, giving owners a more consistent return. See what guests prioritise most in our guide to must-have amenities for luxury holiday accommodation.
Seasonal pricing and occupancy rates
Income from a holiday let depends heavily on seasonal pricing and the ability to manage occupancy rates. Demand-based pricing allows owners to increase rates during peak seasons, such as holidays and festivals, while keeping steady occupancy rates during quieter periods through discounts or special offers. This approach helps balance earnings across the year and prevents long vacancy gaps.
In addition, tailoring promotions to niche audiences, for example, couples seeking retreats or families on school holidays, supports consistent demand. When executed well, these pricing strategies ensure a short-term rental remains competitive.
How to maximise your holiday let profit?
Strong returns depend not only on location but also on how you manage the property. There are several proven steps owners can take to increase earnings and secure consistent bookings.
Invest in high-quality furnishing and amenities
First impressions matter when it comes to guest satisfaction. Comfortable beds, modern appliances, and thoughtful touches such as outdoor furniture or upgraded bathrooms can transform a property’s look and feel. These upgrades influence both guest reviews and repeat bookings, directly boosting profitability.
For owners asking how much money from holiday let investments is realistic, furnishing standards play a major role in determining the answer. Quality features help a property stand out in competitive markets, ultimately supporting higher nightly rates.
Know your target audience
Identifying your audience is key: Families often want space and safety, while younger tourists may prioritise location and nightlife.
Growing numbers of digital nomads are also searching for homes with reliable internet and work-friendly setups. You always want to tailor your marketing and amenities to these needs to attract consistent seasonal demand.
Clear targeting maximises bookings and reduces costly gaps between stays, ensuring steadier income year-round.
Use dynamic pricing
A flexible income strategy makes it easier to match changing demands. Higher rates during holidays or festivals reflect a stronger competition for accommodation, while discounts or unique accommodation offers in slower months help maintain steady bookings.
Most short-term rental platforms now include tools that adjust pricing automatically, removing the need for constant updates. When applied carefully, this approach keeps a rental home competitive, safeguards profits in busy times, and reduces the risk of long gaps between guests.
List your home
Running a holiday property requires constant attention, from guest check-ins to cleaning and pricing updates. For many owners, this workload makes it difficult to unlock the true value of their home. Partnering with L’Abode Accommodation allows you to hand over these responsibilities to a professional team.
Our team manages listing updates, guest screening, cleaning, and revenue performance, reducing the stress for owners. With expert property management, your home can deliver steady passive income while maintaining its value as an investment property. Explore our rental opportunities to see how we help properties reach their full potential.
Unlock your holiday lets’ profit potential today with L’Abode Accommodation
Many property owners find that while holiday homes promise strong income, their daily demands often limit their earnings. The solution lies in partnering with an experienced team that understands how to make money from holiday let investments.
L’Abode Accommodation delivers end-to-end services, including property styling, guest communication, and full revenue management. This professional support reduces stress but also drives higher returns. Discover what we offer or list your home with us to unlock the full earning potential of your property today.