02/10/2026
Holiday rental: dream investment or money pit? Here’s the honest breakdown before you buy.
The upsides:
- Higher income potential: Short-term rentals can earn significantly more per night than a standard lease, especially in peak season.
- You can use it yourself: Block out the dates and you’ve got a holiday home for the family.
- Capital growth in the right location: Coastal and tourist hotspots with limited supply tend to hold their value well over time.
The downsides:
- Seasonal income: A fully booked summer can be followed by a very quiet winter, so you need to plan for the slow months.
- Higher costs: Cleaning, management fees, platform fees, furnishing, utilities and maintenance all eat into your returns.
- Regulation risk: Councils and governments are tightening short-stay rules in many areas. Always check what’s permitted before you buy, not after.
- Vacancy risk: Empty weeks mean zero income, but the mortgage still needs to be paid.
The bottom line:
A holiday rental can be a great investment, but only if the numbers stack up.
If it only works when the property is booked 90% of the year, it’s not a safe investment, it’s a gamble.
General information only, not financial or investment advice. This doesn’t consider your personal circumstances, objectives or financial situation. Do your own research and seek independent professional advice before making any property or investment decision.
