Investment advice for holiday lets

Other frequently asked questions

Should I start a B&B or holiday let business? What's the difference and can I change from one to the other?

There are a number of differences between a holiday let and a bed and breakfast, with the most obvious being that guests staying at B&Bs will inevitably expect a live-in host with a catering and cleaning service. We know that this won't suit everyone and believe that with these kind of daily demands, running a bed and breakfast is generally much harder work, whereas with a holiday let, guests are mostly much happier to look after themselves!

Let your property with Sykes and you'll enjoy much more flexibility and helpful advice from the very start of your journey. If you're already running your property as a B&B, hotel or even a pub, and would like some advice on converting it to a self-catering holiday let, then we're here to help! With our step-by-step guidance and support, many owners have already made the transition smoothly and efficiently, and are now enjoying the benefits.

For more information, please call our team, who are here 7 days a week to talk you through the process and offer you all sorts of helpful holiday letting advice.

How do I calculate ROI on a holiday rental property?

Whatever queries you have concerning your holiday let investment, we're here to help. ROI (Return on Investment) for a rental property can be calculated by dividing your net annual income (gross annual income minus annual costs) by the cost of the property as below: 
ROI = Net income (gross annual income - annual costs) / cost of property

For example, if your property was earning £20,000 a year and it had been valued at £200,000 with your overheads costing £10,000 a year, your ROI would be 0.05 or 5%, as below: 
(20,000 - 10,000) / 200,000 = 0.05 or 5%

If you would like to talk this through with someone or you have any further questions about your holiday let investment, then please don't hesitate to speak to us. Our property experts can give you lots of helpful information.

How do I work out yield on a rental property?

Yield can be calculated by multiplying your monthly rental by 12 and then dividing the outcome by the amount you invested, as below: 
Yield = Monthly rental x 12 / amount investment

However, working with Sykes means that your property will be intelligently priced based on its booking potential throughout the year, so that you can receive the best booking levels and a reliable income all year round.

If you'd like a good idea on your property's earning potential, then take a look at our earnings estimator. This will provide you with a guideline of the average annual earnings you can expert your holiday property to achieve.

When it comes to your holiday let investment, we can offer you expert advice, so please get in touch for a more detailed proposal. We'll talk through all your options and give you a really good idea on the income you can expect.