Launching or growing a holiday rental is exciting—but also risky if you rely only on intuition. A clear business plan for holiday let turns ideas into a roadmap: it helps you understand your numbers, define your ideal guest, choose the right tech stack and avoid costly mistakes.
In this guide, we’ll walk through how to build a solid business plan for your holiday rental step by step. We’ll also show how a guest management platform like Chekin can simplify daily operations, automate the guest journey and improve the experience from booking to check-out.
Why a Business Plan for Holiday Let Matters
Before diving into templates and sections, it’s important to understand why you need a business plan in the first place.
1. Turn a property into a real business
Owning a nice property in a good location is not the same as having a profitable rental business. A plan forces you to answer key questions:
- What occupancy do you need to break even?
- What ADR (average daily rate) is realistic for your area?
- Who exactly is your target guest—and why would they choose you?
Putting this in writing helps you move from “I hope it works” to “I know what I’m building and how”.
Read more about: Guest Profile Strategies: Types, Insights & Actionable Tactics
2. Make better investment decisions
If you’re considering buying, renovating or adding more units, a clear business plan:
- Shows whether the numbers really add up.
- Highlights risks (regulations, seasonality, competition).
- Makes it easier to discuss financing with banks, partners or investors.
3. Simplify daily operations
A good plan doesn’t just talk about vision and money. It also covers:
- How you will handle bookings and payments
- Who will clean and maintain the property
- How check-in, guest communication and compliance will work
This is where planning tools and automation—like Chekin—make a big difference in saving time and reducing mistakes.
How to Structure Your Business Plan for Holiday Let
There is no single “correct” format, but most successful plans share the same core sections. Use the outline below as a practical template.
Core Sections of a Business Plan for Holiday Let
1. Executive summary
This is a one-page overview of the whole project. Even if you write it last, it goes first in the document. Include:
- Property type and location
- Number of units and capacity
- Target guest segments (families, couples, remote workers, etc.)
- Key strengths (view, design, location, services)
- Main financial goals (revenue, profit, payback period)
Think of it as the “pitch” someone would read to decide whether to keep going.
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2. Company description and business model
Here you explain who you are and how your holiday rental business works:
- Are you an individual owner, property manager or small company?
- Do you own the properties, sublet them (rental arbitrage) or manage for owners?
- Will you focus on one destination or several?
Clarify your business model: where revenue comes from (nightly stays, upsells, services) and what your main cost drivers are (mortgage/rent, utilities, cleaning, software, staff).
3. Market and guest analysis
This is where you show you understand your environment.
- Local market:
- Demand drivers (tourism, business travel, events).
- Seasonality (high, shoulder and low seasons).
- Regulatory context (short-term rental rules, caps, licenses).
- Competition:
- Types of properties around you (apartments, cottages, villas, aparthotels).
- Average prices and minimum stays.
- Quality level and review scores.
- Guest personas:
- Who are your ideal guests? Families with children, digital nomads, pet owners, couples, corporate guests?
- What do they value most: location, design, self check-in, parking, late check-out, strong Wi-Fi?
The sharper your guest personas, the easier it is to tailor your property, pricing and guest journey to them.
4. Value proposition and positioning
Answer a simple but powerful question: “Why should a guest book my place and not the one next door?”
Your value proposition might be:
- Design-led apartments in the city centre
- Family-friendly cottages with secure garden and toys
- Self check-in units ideal for late arrivals and remote workers
- Pet-friendly homes close to nature trails
Make sure this value is reflected in:
- Your listing photos and descriptions
- The amenities you provide
- The digital experience, from booking to check-out
For example, if you promise “effortless arrivals at any time”, you’ll need a robust self check-in flow—this is exactly where Chekin can support you.
5. Operations plan
This is one of the most critical sections for a business plan for holiday let, especially for managers with multiple units.
Cover at least:
- Property preparation: furniture, equipment, safety items, maintenance schedules.
- Cleaning & laundry: who does it, how often, checklists, quality control.
- Maintenance & emergencies: trusted vendors, response times, budget.
- Check-in & check-out process: in-person, key safe, smart locks, digital check-in.
- Software & tools: PMS, channel manager, pricing tools, guest management (e.g. Chekin).
Here is where you can explicitly define how you will automate the guest journey:
- Online check-in before arrival
- ID verification and collection of legal data
- Automatic registration with authorities where required
- Automatic calculation and management of tourist taxes
- Smart access (codes sent only after check-in is complete)
- Scheduled guest communication (arrival info, house rules, review request)
Chekin brings all of this together in a single guest experience platform, reducing manual tasks and human error.
6. Marketing and distribution plan
Explain how you will attract guests and where they will book:
- Main channels: Airbnb, Booking.com, Vrbo, niche OTAs, direct website
- Channel strategy: which channels for which properties and seasons
- Website & SEO: will you build your own site and invest in organic traffic?
- Social media and partnerships: local businesses, tourism boards, events
Tie your marketing back to your guest personas. For example, if you target remote workers, highlight strong Wi-Fi, desks and self check-in with flexible hours—and show this clearly in your listings and website.
7. Revenue management and pricing
Pricing is not just “set a number and hope for the best”. In your plan, define:
- Your pricing strategy (premium, mid-market, budget)
- Minimum stay rules and season-based pricing
- Use of dynamic pricing tools or manual adjustments
- Upsell opportunities: early check-in, late check-out, parking, experiences
Combine this with realistic assumptions for occupancy in high, mid and low season to project your revenue.
8. Financial plan
Turn all your ideas into numbers:
- Start-up costs: purchase or deposit, renovation, furniture, legal fees, licenses, initial marketing, software setup.
- Fixed costs: mortgage/rent, utilities, insurance, software subscriptions, salaries.
- Variable costs: cleaning, laundry, welcome amenities, commission on bookings.
- Revenue projections: based on your pricing and occupancy assumptions.
Include simple scenarios:
- Base case (realistic)
- Optimistic case
- Conservative case
This gives you a clear view of risk and buffers needed.
Practical Tips When Writing Your Business Plan
To finish, here are some simple tips you can apply right away:
- Start simple, then refine. A 5–6 page plan that you actually use is better than a 40-page document that nobody reads.
- Use real data. Check comparable listings and tools like AirDNA instead of relying only on gut feeling.
- Make it a living document. Revisit your plan at least once a year as regulations, costs and guest expectations change.
- Align your tools with your plan. If your strategy mentions “self check-in” and “automation”, choose software (like Chekin) that truly supports those goals.
- Think like a guest. Every time you add a process, ask: does this make the guest journey clearer and smoother, or more complicated?
Conclusion: A Clear Plan and a Smooth Guest Journey
Creating a business plan for holiday let is not just a formality—it is the backbone of a sustainable, profitable rental business. It helps you understand your market, shape your product, choose the right guests and keep your finances under control.
But a strong plan must also translate into daily operations. That’s where technology and automation matter. By integrating a guest experience platform like Chekin into your business plan, you can:
- Automate online check-in and ID collection
- Stay compliant with local guest reporting rules
- Connect identity verification with smart access
- Deliver a smooth, modern guest journey that supports great reviews
With a clear strategy on paper and an automated guest journey in practice, your holiday rental business is far better positioned to grow, adapt and thrive in a competitive market.
Discover how Chekin can help you automate check-in, stay compliant, protect your property, and boost revenue—saving 87% of your time and earning more from every booking.
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