These are defined as the gas, electricity and water supplies to the house, and annual costs such as council tax or business rates, TV licence and other entertainment facilities such as broadband and satellite TV.

The provision of gas, electricity and water to a holiday let is a necessity, and can be expensive, especially if the unit prices are rising. Gone are the days where it was the norm to have a meter where guests would pay for electricity on demand – a modern and successful holiday let should include this in the price. It is an area to pay special attention to as part of achieving a healthy return on your holiday home investment, as managing outgoings can have a big influence on profit and loss.

Usage levels vary throughout the year in line with occupancy and the temperature. So in summer when most guest stays take place gas and electricity usage will be relatively low where there is less need for heating and guests maybe out of the house during the day enjoying their holiday. The reverse can be true of the winter so it is important to reflect the higher running costs in winter pricing to ensure stays are profitable.

One of the largest ongoing costs is council tax, usually at 90% of the residential rate. Holiday homes can be classed as a business and therefore qualify as business premises and business rates instead of council tax. It is worth investigating the comparable rates with the local authority where the property is located.

Finally the TV licence is a fixed requirement, but it is increasingly common to provide further entertainment facilities such as satellite or cable TV, and wi-fi in properties. The cost of these varies, but can typically be covered by one or two extra bookings in a calendar year, thus making them worthwhile.