Investing in a holiday rental can be a rewarding way to generate income. However, not every home makes a successful holiday rental. Before making an offer, it’s worth looking beyond the decor and asking whether the property is set up to attract guests and deliver a healthy return.

Whether you’re buying your first holiday rental or expanding your portfolio, here are seven key things to consider before taking the plunge.

1. Choose A Location Guests Will Love

Location is one of the biggest factors influencing booking performance. While a beautifully presented property certainly helps, guests often prioritise convenience when choosing where to stay.

In Bath, properties within walking distance of the city centre, Bath Spa railway station and the city’s main attractions tend to perform particularly well. Areas with nearby independent cafes, restaurants and shops are also popular with visitors looking for an authentic stay.

When viewing a property, ask yourself:

• Can guests explore the area on foot?
• Are there restaurants, cafes, pubs and shops nearby?
• Is public transport easily accessible?
• Will the location appeal throughout the year?

A sought-after location can lead to higher occupancy, stronger nightly rates and more repeat bookings.

2. Look For Features That Help The Property Stand Out

Guests have plenty of choice when browsing holiday rentals, especially in a city like Bath. Properties with memorable features often have the edge. You don’t need every luxury imaginable, but one or two standout features can make a significant difference.

Popular features include:

• Parking
• Hot tubs
• Private gardens or courtyards
• Dog-friendly accommodation
• Roll-top baths
• Outdoor dining areas
• Stylish interiors
• Character features such as exposed stonework or original fireplaces
• Beautiful views

Think about what would make someone stop scrolling and choose your property over the competition.

3. Think Beyond First Impressions

A property may look stunning during a viewing, but it’s important to consider how practical it will be to operate as a holiday rental. Durable flooring, easy-to-clean surfaces and quality fixtures can reduce maintenance costs over time. Likewise, an awkward layout or high-maintenance garden may create unnecessary work between guest stays which will only leave you footing the bill for lengthy changeovers.

It’s also worth budgeting for improvements such as:

• Decorating
• Furniture and furnishings
• Kitchen equipment
• Safety upgrades
• Replacement appliances
• Ongoing maintenance

Planning for these costs early will help you build a more realistic investment budget.

4. Crunch The Numbers – And Make Sure They Add Up

A holiday rental is both a home and a business, so understanding the financials is essential. Before purchasing, research similar holiday rentals in the area to estimate realistic occupancy levels and average nightly rates. Then factor in all of the ongoing costs, including:

• Mortgage repayments
• Utilities
• Council tax or business rates
• Insurance
• Cleaning and laundry
• Maintenance and repairs
• Guest welcome items
• Booking platform commission
• Property management fees

It’s always better to base your calculations on conservative occupancy estimates rather than assuming you’ll be fully booked year-round.

5. Consider Year-Round Demand

It’s easy to focus on peak season, but the most successful holiday rentals attract guests throughout the year. Bath sits in a league of its own and benefits from a strong calendar of events and attractions, helping maintain visitor demand across every season. From the Jane Austen Festival and university graduations to the Bath Christmas Market and the city’s thriving food and cultural scene, there are plenty of reasons for visitors to book outside the summer months.

When researching an area, consider:

• When are the busiest and quietest periods?
• Who is likely to book the property?
• What attracts visitors throughout the year?
• Is demand driven by one season or sustained year-round?

Understanding local demand will help you build more accurate income forecasts and choose a property with long-term earning potential.

6. Think About Parking and Accessibility

Practical features often influence booking decisions more than owners expect. In a historic city like Bath, parking can be a major selling point. Easy access to public transport is another feature many guests value, particularly those arriving by train.

It’s also worth considering how accessible the property is. Multiple flights of stairs, steep access or limited parking won’t necessarily prevent bookings, but they may affect the type of guests your property attracts.

Understanding these factors will help you position and market your property effectively from the outset.

7. Buy With Your Ideal Guest In Mind

The best holiday rentals aren’t designed to appeal to everyone – they’re designed to appeal to the right guests.

Think about who is most likely to book your property. A stylish one-bedroom apartment may be perfect for couples enjoying a city break, while a larger home with a garden and parking could appeal to families or groups. If you’re targeting dog owners, outdoor space and nearby walks may be a bigger priority than luxury finishes.

Understanding your target audience before you buy will help shape everything from your interior design choices to the amenities you provide and the way your property is marketed.

Thinking Of Buying a Holiday Rental Property In Bath?

If you’re considering purchasing a holiday rental in Bath, we’d be happy to help you assess its potential before you commit. We work closely with owners across the city and understand what drives bookings, guest satisfaction and long-term profitability. We can provide an honest assessment of a property’s suitability as a holiday rental, helping you make an informed investment from day one.

Get in touch to discuss your plans – we’d love to help you find a property that works for you.