What Are the Costs When Buying a Cottage to Rent Out in the Lake District?
Buying a cottage to rent out in the Lake District can be a lucrative investment.
At Laik, we manage luxury holiday cottages across this beautiful region, so we know what it takes to make your property a success.
The costs of buying and running a rental cottage add up quickly.
From the purchase price to ongoing expenses, it’s important to plan carefully.
In this blog post, we will break down the key costs you need to consider.
Our goal is to help you make a smart investment decision and get the maximum return on your investment.
Related: Where to Invest in Holiday Homes in the Lake District
The Approximate Potential Costs at a Glance:
| Cost Category | Estimated Cost | Notes |
|---|---|---|
| Property Purchase Price | £300,000+ | Varies by location (e.g., higher in Ambleside/Windermere), size, condition |
| Survey | £400–£1,000+ | Basic (£400–£800); detailed for older cottages (£1,000+) |
| Legal Fees | £1,000–£2,500 | Includes searches and paperwork for purchase |
| Stamp Duty (SDLT) | £14,500+ (for £400,000 cottage) | Additional 3% for second homes/rentals, varies by price |
| Renovations | £5,000–£10,000+ | Basic fixes (£5,000+); new kitchen or major updates cost more |
| Styling/Furnishing | £10,000+ | Quality furniture, bedding, decor for a two-bedroom cottage |
| Fitting Costs | £8,000–£20,000 | Kitchen appliances (£5,000–£10,000), heating/bathroom (£3,000–£10,000) |
| Outdoor Improvements | £2,000–£5,000 | Landscaping, gravel parking |
| Professional Photography | £300–£800 | Essential for marketing; may be covered by agency |
| Website/Listing Fees | £1,000–£3,000 or commission | Website design/hosting or platform fees (e.g., Airbnb commission) |
| Letting Fees | 15–25% of booking income + VAT | Approx. £150–£250 per £1,000 booking, plus £200–£500 setup fee |
| Cleaning (Per Visit) | £75–£200 | Varies by cottage size; essential between bookings |
| Linen/Towel Services | £75–£200 per booking | Professional laundering for guest comfort |
| Maintenance (Annual) | £500–£2,000 | Repairs (e.g., taps, painting, heating); higher for older cottages |
| Garden Maintenance (Annual) | £500–£1,000 | Mowing, weeding to maintain appeal |
Related: Thinking of Investing in Holiday Property in the Lake District?
Buying Your Property
The first big cost when buying a cottage for holiday letting in the Lake District is the property price.
Prices vary depending on location, size, and condition.
On average, a property suitable for holiday rentals costs from £300,000 upwards.
Prime locations like Ambleside or Windermere often have much higher prices.
You’ll also need to pay for a survey to check the property’s condition.
A basic survey costs around £400 to £800, but a detailed one for older cottages can be £1,000 or more.
This helps you avoid unexpected repair costs later.
Legal fees are another expense.
Hiring a solicitor to handle the purchase typically costs £1,000 to £2,500, including searches and paperwork.
These fees ensure the property is legally sound and free of issues.
Stamp Duty Land Tax (SDLT) applies when buying a property.
For a second home or rental property, you pay an extra 3% on top of standard rates.
For example, a £400,000 cottage could have a stamp duty bill of £14,500 or more, depending on your situation.
Budgeting for these costs upfront is important.
The property price, survey, legal fees, and stamp duty can add up fast, so plan carefully to stay on track.
Related: Lake District Holiday Let Average Occupancy Per Year
Renovation, Styling and Fitting Costs
Turning your Lake District cottage into a luxury holiday rental often means spending on renovations.
Many properties need updates to meet guest expectations.
Basic renovations, like fixing plumbing or electrics, can cost £5,000 or more, depending on the cottage’s condition.
Larger projects, such as adding a new kitchen, can push costs higher.
Styling the cottage is key to attracting bookings.
Guests want a modern, comfortable space.
Furnishing a two-bedroom cottage with quality furniture, bedding, and decor typically costs at least £10000.
Choosing durable, stylish items ensures the space looks great and lasts.
Fitting costs include essentials like kitchen appliances, bathroom fixtures, and heating systems.
A new kitchen might cost £5,000 to £10,000, while upgrading heating or hot water systems can add £3,000 to £10,000.
These upgrades improve guest comfort and energy efficiency.
You may also need to budget for outdoor improvements.
A tidy garden or parking area can make your cottage more appealing.
Basic landscaping or gravel parking might cost £2,000 to £5,000.
Planning these costs carefully is important.
Renovations, styling, and fittings can transform your cottage, but they require a clear budget to avoid overspending.
Related: Potential Income from a Lake District Holiday Let
Publicity and Marketing Costs
Great photos are essential to show off your Lake District holiday cottage.
Hiring a professional photographer costs around £300 to £800, depending on the property size and number of shots.
(If you work with us we cover these costs).
High-quality images make your listing stand out online.
A website or listing on platforms like Airbnb or Booking.com helps attract guests.
Building a simple website costs £1000 to £3,000, including design and hosting.
Alternatively, listing fees on popular platforms vary but often include a small commission per booking.
Budgeting for photos, a website, and ads is key to filling your cottage with bookings.
Good marketing makes your property visible and appealing to holidaymakers.
Letting Fees
Using an agency like Laik to manage your Lake District holiday cottage comes with letting fees.
These fees cover services like guest bookings, cleaning, and property maintenance.
Most agencies charge a commission based on your rental income.
Typically, letting fees range from 15% to 25% of each booking, plus VAT.
For example, if your cottage earns £1,000 per booking, you might pay £150 to £250 (+ VAT) to the agency.
The exact rate depends on the services included.
Some agencies offer extra services, like handling guest queries or marketing, which can affect the fee.
Full management packages, covering everything from check-ins to repairs, often cost more but save you money and time.
They are essential for owners who don’t live very close to thier rental property.
You may also pay a one-off setup fee when joining an agency.
This can be £200 to £500 to cover listing your property and preparing it for guests.
Budgeting for letting fees is important.
They reduce your income but make running a holiday cottage easier, leaving you free to enjoy your investment.
Ongoing Cleaning and Maintenance Fees
Keeping your Lake District holiday cottage clean is essential for happy guests.
Professional cleaning between bookings typically costs £75 to £200 per visit, depending on the cottage size.
Regular cleaning ensures the property stays in top condition.
Linen and towel services are another cost.
Hiring a company to provide and launder bedding and towels can cost £75 to £200 per booking.
This keeps your cottage fresh and saves you time.
Maintenance fees cover repairs and upkeep.
Things like fixing leaky taps, painting walls, or servicing heating systems might cost £500 to £2,000 per year.
Older cottages often need more frequent repairs.
You may also need to budget for garden maintenance.
Keeping the outdoor area tidy, with mowing or weeding, can cost £500 to £1000 annually.
A neat garden boosts your cottage’s appeal.
Planning for cleaning and maintenance fees is key.
These ongoing costs keep your property welcoming and protect your investment for the long term.
Some Final Notes on Lake District Holiday Letting Costs
Buying and running a holiday cottage in the Lake District comes with several costs.
The property price and mortage (including interest and fees) is the biggest upfront expense, followed by surveys, legal fees, and stamp duty.
Renovations, styling, and fittings are needed to make the cottage a luxury rental.
Marketing costs, like professional photos, a website, and online ads, help attract guests.
Letting fees, along with ongoing cleaning and maintenance, keep the property in top shape for visitors.
At Laik, we help you save money on all of this and increase your income.
Our experience managing luxury holiday cottages means we can suggest affordable renovations and styling that appeal to high-paying guests.
We handle marketing with professional photos and effective listings to boost bookings.
Our full management services cover cleaning, maintenance, and guest communication efficiently, keeping your costs manageable.
Working with us saves you time and prevents expensive errors.
We set smart rental rates to maximise your income and keep your cottage booked throughout the year.
Contact us today to see how we can turn your Lake District cottage into a profitable investment.
