Hi all, my wife & I are considering investing in a holiday lodge (they look like a double-width static caravan with decking surrounding them, they are 7 berth, 3 bedroom, 42' x 20' size), to rent out for short stay holidays.
The park owner has shown us income year to-date & bookings for later this year (315 nights worth as it currently stands), on an identical lodge and the revenue looks pretty good.
He said the profit is approx. 50% of the revenue when pitch fees, utility costs, Hoseasons %, and the park's management fees (they turn over the property with their own cleaners, manage the bookings etc), are deducted from the revenue.
I've researched furnished holiday let tax benefits, (www.holidaycottagemortgages.co.uk/furnished-holiday-let-tax-guide-updated/), & all seemed reasonable, until I got to the end of the linked page above & read about business rates.
Now it seems the rent-able value (RV) for the park postcode at least (using www.tax.service.gov.uk/business-rates-find/search ), is £18,000, & I saw a formula on a Welsh government page which stated 0.53 x RV = business rate for Welsh holiday let type accommodation.
So my question is, does circa £9540 a year in business rates seem in the same ball park as others pay who rent out something similar (7 berth 3 bedroom 42' x 20' holiday let accommodation)?
Anyone else renting holiday let lodges?
Thanks in advance, Christian