The Most Profitable Holiday Lets Aren’t Bought. They’re Built Through Better Property Decisions.
Every week I speak to people who are thinking about buying their first holiday rental property/shot term rental.
They’re intelligent, successful people who’ve worked hard to build their careers, grown their savings and create the opportunity to invest in property.
They don’t need necessarily want to retire tomorrow. They simply want to build another source of income that gives them more choices in the future.
Almost every conversation starts with the same question.
“What’s the best area to buy a holiday let?”
It’s an understandable question, but after years of buying, running managing profitable holiday rentals, I’ve learnt that location isn’t the first decision that determines whether a holiday let succeeds.
In fact, some of the most profitable holiday lets aren’t owned by people who found the ‘perfect’ property.
They’re owned by people who made the right profitable property decisions long before the first guest walked through the door.
That’s the difference.
Profit Starts Before You Buy
One of the biggest misconceptions about holiday letting is that success comes from finding a beautiful property in a top location.
Of course, both matter.
A holiday let is a business.
Like any successful business, profitability comes from making a series of good decisions, not just one good purchase.
I’ve seen lovely properties struggle because the owner bought with their heart instead of their head.
I’ve also seen ordinary properties outperform their neighbours because every decision was made with profitability in mind.
The most successful holiday let owners don’t simply ask, “Would I like to stay here?”
They ask,“Would my ideal guest choose this over every other property nearby, and would they happily pay more to do so?”
That’s a completely different way of thinking. Here are four questions to ask yourself before you commit hundreds of thousands of pounds and huge amounts of time.
Question One: Are You Buying the Right Business, Not Just the Right Property?
When people view a property, it’s easy to imagine family weekends, cosy evenings by the fire and long walks in the countryside.
There’s nothing wrong with that.
But if your goal is to build another income before retirement, you need to think like an investor before you think like a guest.
One exercise I often suggest is this.
Imagine two properties sitting next to each other.
Both are attractive.
Both are in the same village.
Both cost exactly the same.
One consistently earns £30,000 more each year than the other.
Why?
It isn’t luck.
It’s because one owner understood what guests were looking for and had a system to implement to ensure these were delivered.
They understood who they were trying to attract, how they would position the property and why someone would choose theirs over the competition.
That’s thinking like a business owner.
Before you fall in love with a property, ask yourself:
Who is my ideal guest?
Why would they choose this property?
Can I see genuine year-round demand?
The answers to those questions are often far more important than the colour of the kitchen or whether the sitting room has exposed beams.
Question Two: Will This Property Stand Out Enough to Charge Premium Rates?
One thing I say regularly is this:
Being ”nice”or “decent” or even “clean”isn’t enough anymore. (Though being clean is essential).
Guests have more choice than ever before.
If every property in your chosen location looks similar, why would someone pay more to stay in yours?
This doesn’t always mean spending more money.
Sometimes it’s about making smarter decisions.
Perhaps it’s private parking where parking is limited.
Or perhaps it’s creating an exceptional guest experience from the moment someone books until long after they’ve gone home.
The details matter.
When I look at a potential property, I’m always asking:
“What makes this one different and better than the rest? And if it is not there right now - can I add it?”
If I can’t answer that question clearly, neither will a guest scrolling through dozens of listings.
And if they can’t see the difference, they’ll usually compare on price.
That’s a race you don’t want to win, because Profit comes from standing out, not blending in.
Question Three: Are You Looking at the Property... or the Numbers?
This is where I see many first-time buyers become unstuck.
They’ve found a nice property.
The estate agent tells them short term rentals are doing really well.
They’ve looked online and seen impressive nightly rates.
Everything feels positive.
But very few people stop and ask whether the numbers actually stack up.
What occupancy would you need?
What happens during quieter months?
What will cleaning, maintenance, insurance, utilities and management actually cost?
What happens if interest rates rise? Can the business still perform?
I’ve worked with people who have almost bought properties because they assumed demand would always be there.
When we looked more closely, we realised there were better opportunities elsewhere.
Not because the property was bad.
Because the numbers weren’t.
A nice property won’t pay the mortgage. A profitable business will.
Question Four: Can This Holiday Let Still Succeed Five Years From Now?
The short-term rental property market doesn’t stand still.
Guest expectations change. Regulations change. Technology changes. Supply and Demand changes,
The owners who continue to perform well aren’t necessarily those with the newest properties.
They’re the ones who adapt.
When I’m considering any property, I ask myself whether it will still be attractive in five to ten years’ time. Why so long? With a property investment, you want to be assuming you will keep it for at least 10 years to ensure capital growth and to ride any storms.
In order to ensure you are not risking your investment, you need to consider that buying a short term rental property isn’t just about today’s market, it’s about making decisions that continue to work tomorrow.
Other Factors That Make a Bigger Difference Than Most People Realise
There are dozens of decisions that affect profitability, but these are four I believe every owner should think about before buying.
How will I price the property?
Many owners focus entirely on occupancy. I’d rather focus on profitable occupancy.
A full diary isn’t always a profitable diary.
Often charging the right price for fewer nights delivers a much stronger result.
How easy will this property be to manage?
Will you manage it yourself?
Use software?
Employ a management company?
None of these is right or wrong, but each affects profitability.
Think about this before you buy, not after.
Can I consistently deliver an outstanding guest experience?
Guests remember how you made them feel.
That’s what drives five-star reviews, repeat bookings and recommendations.
A profitable holiday rental property isn’t built solely on how it looks.
It’s built on consistently exceeding expectations.
Am I prepared to keep learning?
Investing in Holiday rental properties isn’t something you set up once and forget.
The best-performing owners and hosts keep learning, adapting and improving.
That’s one of the reasons some properties continue to outperform year after year while others gradually fall behind.
The Biggest Lesson I’ve Learnt
Looking back over my own journey, I haven’t built a profitable holiday rental business because I got lucky.
I’ve built it by making hundreds of decisions.
Some were big. Many were small.
Together, they’ve made an enormous difference.
That’s why I’m so passionate about helping others avoid expensive mistakes.
Not because I don’t think people can’t work things out for themselves - they usually can.
But property investing is too expensive to rely on trial and error.
One good decision today can pay you back for years.
One poor decision can do exactly the opposite.
If I can help someone make the right profitable property decision before they spend hundreds of thousands of pounds, then I’ve done my job.
Final Thoughts
If you’re reading this because you’re thinking about buying your first short term rental property, I’d encourage you to slow down for a moment.
Not because I think you shouldn’t buy.
Quite the opposite.
I think investing in short term rentals can be a fantastic way to build another income and create more choices for your future. And waking up to a message from a guest saying how fantastic their stay is, is a great way to start the day.
But I also believe that profitable short term rental properties aren’t created by accident.
They’re created by making the right profitable property decisions before, during and after you invest.
Don’t just ask where you should buy.
Ask whether you’re making the decisions that will give your investment the very best chance of succeeding.
Those decisions will still matter long after you’ve collected the keys and welcomed your first guests.
Thinking About Buying Your First Holiday Rental or short-term rental property?
If you’re serious about investing but want the confidence that you’re making the right profitable property decisions before committing hundreds of thousands of pounds, I’d love to help.
Book a complimentary Discover Call with me and we’ll talk through your goals, the type of property you’re considering and the decisions that are most likely to influence its long-term profitability.
Whether we end up working together or not, you’ll leave with greater clarity, more confidence and a much better understanding of what it really takes to build a profitable holiday rental property.
Because buying a property is one decision.
Making it profitable is a hundred more.