Owning a holiday let in North Wales can be a rewarding venture, offering not only the opportunity to generate income but also to share the beauty of this stunning region with visitors. However, as with any business, it’s important to understand the costs involved to ensure your holiday let is profitable and well-maintained.
This guide breaks down the key expenses associated with running a holiday let and provides practical advice on managing them effectively. It’s important for prospective holiday let owners in Wales to be well-informed about these specific costs, as they can differ from those in other parts of the UK. To make informed decisions, it’s key to understand both the initial investment and ongoing expenses involved in managing a holiday rental property.
Keep reading for everything you need to know about the costs of running a holiday let in Wales…
Upfront Costs of Running a Holiday Let
Before you welcome your first guests, there are initial costs of running a holiday let to consider:
1. Property Purchase
- Acquiring a property is the largest upfront cost. Prices vary widely depending on location, size, and condition. Rural or coastal properties, especially in tourist-heavy regions, may carry a premium.
- Pro Tip: Check out Zoopla or Rightmove to research property prices in North Wales.
2. Stamp Duty
3. Renovations and Furnishings:
- Most holiday lets require some level of renovation or redecorating to make them guest-ready.
- Furnishing costs can range from £5,000 to £30,000, depending on the level of luxury you want to offer.
- Include costs for furniture, appliances, soft furnishings, and décor.
- Focus on durable, high-quality items to minimise long-term replacement costs.
- Other essential services like Wi-Fi installation and safety equipment (fire alarms, carbon monoxide detectors) also need to be factored in.
4. Marketing and Photography
- Professional photography and listing creation are essential to attract guests. Budget for high-quality images that showcase your property’s unique features. Partnering with an agency like Menai Holiday Cottages means you’ll get this included in your rate.

Ongoing Costs of Running a Holiday Let
Running a holiday let involves regular expenses to keep the property functional, attractive, and compliant with regulations. Here’s what you need to budget for:
1. Maintenance and Repairs
- Routine upkeep includes addressing wear and tear, repainting walls, and fixing broken items.
- Seasonal tasks like gutter cleaning, lawn care, and winter-proofing are essential.
- Average maintenance costs are around 1-2% of the property’s value annually.
TOP TIP: Partner with an agency like Menai Holiday Cottages who offer a fully managed service to help coordinate these tasks, ensuring your property remains in top condition year-round while reducing the workload for you.
2. Utilities and Bills
- Include electricity, gas, water, internet, and TV licences.
- Energy-efficient appliances and smart meters can help keep these costs manageable.
- Monthly utility bills can range from £100 to £250, depending on property size and occupancy.
- Don’t forget additional services like TV subscriptions (e.g., Netflix or Sky) and parking permits if applicable.
3. Cleaning and Laundry
- Professional cleaning between bookings is crucial to maintain high standards.
- Cleaning costs vary, from £80 for a 1-bedroom property to £180 for a 5-bedroom property, excluding linen services.
- Pro Tip: High-quality, durable bedding reduces replacement costs and enhances guest satisfaction.

4. Insurance
- Specialist holiday let insurance covers risks like guest injuries, property damage, and loss of income due to unforeseen circumstances.
- Annual premiums range from £300 to £800, depending on coverage.
- Policies must include at least £2 million in public liability cover. Compare options on MoneySuperMarket.
5. Business Rates and Council Tax
- If your property is available to let for more than 252 days a year and actually let for at least 182 days, you’ll likely need to pay business rates instead of council tax.
For more information, visit GOV.UK or head to our Guide on Furnished Holiday Let Tax and Business Rates in Wales.
6. Marketing
Once you’ve set up your holiday let business, you’ll need to think about how you’re going to secure bookings- marketing is crucial for this.
- There are costs associated with listing on platforms like Airbnb and Booking.com, which typically charge commission fees of 10-20% per booking.
- Listing with Menai Holiday Cottages reduces this hassle, as your commission fee will include marketing your property on all of these platforms, as well as our own website and the Sykes Cottages website.
- Backed by Sykes Cottages, we invest millions in marketing activities to ensure you get as many bookings as possible.
TOP TIP: Set up a social media for your property as this is a great way to showcase your holiday let, with little to no costs involved.

7. Annual Compliance Checks
- Gas Safety: Inspections by a registered engineer ensure all gas appliances are safe and compliant.
- Electrical Safety: Portable Appliance Testing (PAT) is recommended, along with an Electrical Installation Condition Report every 5 years.
- Fire Safety: Smoke alarms, fire extinguishers, and emergency exits must comply with regulations. Learn more in our Health and Safety Regulations for Holiday Lets Guide.
Head to our Guide on Health and Safety Regulations for Holiday Lets for more advice.
9. Waste Collection
- As a business, you’ll need to pay for trade waste collection. Costs range from as little as £4 per collection via your local council or a private waste collector. Menai Holiday Cottages can help arrange and monitor this as part of our managed services.
Hidden Costs to Watch Out For
- Unexpected Repairs: Set aside an emergency fund to cover unforeseen issues like boiler breakdowns or storm damage.
- Guest Amenities: Offering extras like welcome hampers, toiletries, and entertainment options can boost reviews but add to costs.
- Regulatory Compliance: Stay up-to-date with safety regulations, such as fire safety and electrical checks, to avoid fines or legal issues.

How to Maximise Your Holiday Let Income
- Dynamic Pricing: Menai Holiday Cottages has an automatic pricing system that adjusts your rates seasonally or during high-demand periods to optimise earnings.
- Short Breaks: Two short breaks instead of a one-week booking can yield 178% of a property’s standard weekly rental. Currently, short breaks account for 44% of bookings.
- Guest Retention: Encourage repeat bookings by going the extra mile: welcome packs, accepting pets, adding hot tubs/log burners and listening to reviews.
- Energy Efficiency: Install energy-saving features like LED lighting and smart thermostats to reduce utility costs.
Looking for more tips to increase your holiday let profit? Our guide on How To Maximise Your Holiday Let Income will help!
Partnering with an Agency to Simplify Costs
Managing all these expenses can feel overwhelming, especially for first-time owners. That’s where partnering with an experienced holiday let agency like Menai Holiday Cottages can make a real difference:
- Comprehensive Marketing: We handle all advertising, ensuring your property appears on high-traffic platforms, including our own website and partner sites.
- Professional Photography: Our in-house photographer will showcase your property in the best light.
- Owner App: Stay informed about your bookings, payments, and property performance with our easy-to-use owner app.
- Maintenance Support: Need help arranging cleaning or repairs? We can recommend trusted local services to keep your property guest-ready.
- Rules and Regulations: We’ll keep you up to date with any changes in Wales.
By working with us, you’ll not only save time but also gain access to expert advice and tools to maximise your property’s potential.

Final Thoughts
Running a successful holiday let requires careful financial planning and a clear understanding of the costs involved. From upfront investments to ongoing expenses like cleaning, maintenance, and utilities, staying organised is key to ensuring profitability.
If you prefer to outsource management, agencies can handle tasks ranging from bookings to maintenance. Menai Holiday Cottages offers flexible options, whether you need help with just bookings or want a fully managed service. With expert support and marketing strategies, we’re here to help you turn your holiday let into a profitable and stress-free venture.
Learn about our Fully Managed Service, or contact us today to find out how we can help you on your holiday letting journey!