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Industry

What is a Holiday Let?

Updated 2026-05-28

A holiday let refers to a form of short-term accommodation where an entire furnished property, such as a house, cottage, or apartment, is rented out to guests for the purpose of a holiday. Unlike a standard long-term rental agreement, a holiday let is for a defined, short period and is governed by different regulations and tax laws.

To qualify as a Furnished Holiday Let (FHL) in the UK, for instance, a property must meet specific conditions regarding its availability and occupancy for commercial letting.

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How it works

Property owners market their holiday let to potential guests through various channels. These include Online Travel Agencies (OTAs) like Airbnb and Vrbo, as well as their own direct booking website.

Owners or their designated property managers handle all aspects of the rental process, including managing calendars, processing payments, communicating with guests, and organizing cleaning and maintenance between stays. The property must be fully furnished and equipped for self-catering, providing all necessary amenities for a comfortable visit.

Why it matters

For property owners, holiday lets represent a significant business opportunity, often yielding higher income than long-term rentals, albeit with more intensive management requirements. For travelers, they offer a flexible, private, and self-sufficient alternative to hotels, providing more space and a 'home away from home' experience.

Understanding the term and its associated regulations is essential for anyone operating or staying in the short-term rental market in the UK and Ireland.

Examples

  • A couple books a city-center apartment in Dublin for a long weekend through an online travel agency to attend a concert.
  • A property management company in Scotland oversees a portfolio of 20 holiday lets on behalf of individual owners, handling all marketing, guest services, and maintenance.
  • A family rents a three-bedroom cottage in the Cotswolds for a one-week summer holiday directly from the owner's website.
  • The owner of a seaside flat in Cornwall lists it as a holiday let for the busy summer season to generate income, using it for personal getaways during the off-season.

Frequently asked questions

What is the difference between a holiday let and a short-term rental?+
The terms are largely interchangeable. 'Holiday let' is the standard term used in the United Kingdom and Ireland, while 'short-term rental' (STR) is more common in North America and other global markets. Both refer to furnished properties rented for brief periods.
Are there specific rules for owning a holiday let?+
Yes, many jurisdictions have specific regulations. In the UK, for a property to be considered a 'Furnished Holiday Letting' (FHL) and benefit from certain tax advantages, it must be available for commercial letting for at least 210 days a year and actually be let for at least 105 days.
Do I pay the same taxes on a holiday let as a long-term rental?+
No, the tax treatment is often different. In the UK, qualifying Furnished Holiday Lets are treated as a trade for some tax purposes, allowing owners to deduct expenses like mortgage interest and claim certain capital allowances, which is not typically possible with long-term rentals.
How do guests book a holiday let?+
Guests can book holiday lets through multiple distribution channels. These include major Online Travel Agencies (OTAs) like Airbnb, Vrbo, and Booking.com, as well as by booking directly with the owner or manager through their personal vacation rental website. Platforms like Lodgify enable owners to create a bookable website and synchronize their calendar across all channels.
Keep reading

Related terms

Industry

Furnished Rental

A furnished rental is a property leased with all the necessary furniture and amenities included, allowing tenants to move in with minimal personal belongings…

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Marketing

Direct Booking

A reservation made directly with a property manager or host, bypassing third-party online travel agencies (OTAs) and their commissions.

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Marketing

Online Travel Agency (OTA)

An Online Travel Agency (OTA) is a website or app that sells travel-related products like flights, hotels, and vacation rentals to consumers.

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Industry

Short-Term Rental (STR)

A furnished living space, such as an apartment or house, rented for a brief period, typically from a few days to under a month.

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