Buy a Lodge and Rent it Out: Can You Expect to Make Money?

Holiday lodges have become increasingly popular in the UK thanks to the rise in staycations and the demand for luxury breaks.

This has led to a lot of people buying a holiday lodge plot with two uses; to use as a second home for family holidays and weekends away, and to rent out as an investment lodge.

But, before you browse the many lodges available and commit to your favourite log cabin, there are some important rules, costs and considerations you’ll need to understand first.

Breaking Down the Appeal of Holiday Lodge Ownership

Owning a holiday home is a dream for many, offering the perfect blend of relaxation, adventure and quality time with loved ones.

With a wide range of options available – from luxury lodges to charming log cabins – it’s never been easier to find a holiday home that suits your lifestyle and budget.

Whether you’re drawn to the calming sounds of the seaside or the peaceful surroundings of the countryside, holiday homes provide a unique way to escape the everyday and create lasting memories.

But, that’s not where the appeal of lodges for sale ends.

You can also have your own luxury lodge for personal use, but also rent it out to holidaymakers and generate a steady stream of income.

Can You Rent Out a Luxury Holiday Lodge in the UK?

Yes, you can rent out a holiday lodge in the UK, but it depends on:

Where You Buy Your Luxury Lodge

If the lodge for sale is on a holiday park, the park owner sets the rules.

Some encourage holiday lodge subletting and even provide rental management services, while others may restrict it to owner-only use.

Planning Permissions and Lodge Licences

Most lodges are sold with a holiday licence, which allows short-term stays but not permanent residence.

This is perfect for holiday lodge letting, but you can’t live there full-time.

Finance Agreements

If you’re purchasing with a mortgage or finance, check that your lender allows holiday letting.

How Much Income Can You Make from a Holiday Lodge?

The amount you can earn from a luxury holiday lodge varies widely depending on location, lodge type and demand.

Holiday Lodge Plot Location

Holiday lodges in high-demand destinations such as Cornwall, the Lake District, the Cotswolds or North Wales command premium prices.

Lodge Size and Amenities

Features like hot tubs, dog-friendly policies and luxury interiors significantly boost bookings.

Seasonality

Summer holidays, bank holidays and Christmas/New Year weeks are the most profitable.

Off-season bookings can be slower unless your luxury lodge is marketed for year-round use.

What Are the Costs of Owning a Holiday Lodge?

Running a lodge as a rental business comes with ongoing expenses.

It’s important to factor these into your budget, as they will reduce your income.

Holiday Park Site Fees

These are paid annually to the park and are one of the more expensive parts of ownership.

Utilities and Running Costs

You’ll need to cover the cost of gas, electricity, water and wifi for your guests.

Cleaning and Housekeeping

Owners need to either arrange cleaning and housekeeping either privately or through the park.

Lodge Ownership Insurance

Specialist holiday lodge insurance is required, covering damage the the lodge itself, but also personal injury.

Management Fees

If the park handles your lodge bookings, you should expect them to take a percentage of your rental income.

Maintenance

There’s no knowing when something will go wrong with your lodge.

General repairs, hot tub servicing, wear and tear, and accidental damage can add up quickly, so always factor them in before estimating your net profit.

Don’t Rent Out Your Lodge Without Complying with Regulations

Before purchasing and renting out a holiday lodge, it’s crucial to understand the regulations that apply.

Most holiday lodges are sold with a holiday licence, which means they can be used for short-term stays but not as a permanent residence.

Planning permissions and site licences set by the local authority and the holiday park will determine how you can use your lodge, including any restrictions on letting it out to guests.

It’s also important to ensure your lodge meets safety standards and is properly insured for holiday letting.

By staying informed and compliant with all relevant regulations, you can enjoy peace of mind and make the most of your holiday lodge investment.

Do I Pay Tax on Lodge Rental Income?

Yes, you will need to pay tax on the income you make from renting out a lodge.

Income from renting out a holiday lodge is taxable, but if your property qualifies as a Furnished Holiday Let (FHL), there are tax advantages.

If your lodge or log cabin does qualify as FHL, you might be able to claim capital allowances on furniture, fixtures and equipment.

Mortgage interest relief is also a possibility.

Is Buying a Holiday Lodge for Sale a Good Investment?

Buying a lodge or log cabin can be both a lifestyle and financial investment.

The key benefits include:

• A potential second income stream.
• Personal use of your lodge when not rented out.
• Lower maintenance compared to older properties.
• The option to sell it further down the line.

However, unlike traditional property, most lodges are on leasehold agreements tied to a holiday park.

This means they do not usually increase in value like bricks-and-mortar homes, so the main return is rental income and lifestyle benefits rather than long-term capital growth.

How Do I Choose the Right Lodge to Buy?

There’s a wide range of lodges for sale and when you’re considering a purchase, making the right choice is essential.

Is the lodge location desirable year-round? – Coastal spots, national parks and tourist hotspots perform best.

Does the lodge have features that boost bookings? – Hot tubs, walk-in wardrobes, pet-friendly policies, and modern interiors stand out.

What support does the park offer? – Some provide full marketing and booking management, while others leave it to you.

What’s the lease length? – Some holiday lodges come with 25–50 year licences, so make sure you know what happens when it expires.

Lodges for Sale Make Up a Big Portion of the Holiday Home Market

The UK holiday home market is thriving, with a diverse range of lodges and holiday homes for sale in some of the country’s most beautiful locations.

From the rolling hills of Devon to the breathtaking landscapes of North Wales, there’s a perfect spot for every taste.

The surge in staycations has driven demand for luxury lodges and log cabins, making now an excellent time to invest in your own holiday home.

Whether you’re looking for a personal retreat or a property to generate rental income, the market offers a wide range of options to suit your goals.

Take the time to discover parks across the UK and find the ideal lodge for sale that fits your dream lifestyle.

Holiday Lodges for Sale: Does Rental Income Depend on the Park?

Choosing the right holiday park is essential to making the most of your holiday home experience.

Location is a top priority, with many parks offering stunning views and easy access to local attractions and natural beauty.

Consider the range of facilities available – many parks feature on-site restaurants, swimming pools, and entertainment options to keep the whole family happy.

The quality and style of the holiday homes themselves are also important, with luxury lodges and log cabins boasting modern features and spacious layouts. If you’re considering which lodge to buy, consult this guide for an overview of leading manufacturers.

Additionally, look for parks that offer a variety of plots and amenities to suit your needs and budget, ensuring your holiday home is the perfect place to relax and enjoy time with friends and loved ones.

Check Out the Available Lodges Today

So, can you buy a lodge and rent it out in the UK? Yes, you absolutely can.

Holiday lodges can provide a strong income stream and a personal retreat, provided you choose the right location, understand the costs and plan for tax.

For many, the appeal is twofold: earning from the booming UK holiday market, while also having a private getaway to enjoy with family and friends.