The picturesque city of Bath has long been a magnet for visitors seeking Georgian architecture, natural hot springs, and rich cultural history. But beyond its appeal to tourists, Bath has increasingly become a hotspot for short-term holiday letting—offering local homeowners a new source of income and flexibility. If you own property in Bath, you may be wondering: should you make the leap into the holiday let market?

In this article, we’ll explore the pros and cons of holiday letting in Bath, with practical insights, local trends, and real-world considerations to help you make an informed decision.

Why Holiday Lets Are Booming in Bath

Bath continues to outperform many UK cities when it comes to attracting short-term visitors. According to Visit Bath, the city sees over 6 million visitors annually, with an increasing proportion opting for private accommodations over traditional hotels.

Data from AirDNA shows that the average occupancy rate for Bath holiday lets sits around 72%, with peak demand during the summer and festive seasons. Coupled with rising interest in experiential travel and staycations, it’s no surprise that more homeowners are exploring holiday lets as a profitable alternative to long-term rentals.

The Pros of Turning Your Bath Property into a Holiday Let

1. Higher Income Potential

Holiday lets often generate significantly higher nightly rates compared to long-term rentals. Even with variable occupancy, the monthly income from a well-managed short-term let can surpass that of a traditional tenancy—especially in a tourist hub like Bath.

For example, a one-bedroom property in central Bath can generate between £2,000 and £3,000 per month during peak seasons, according to AirDNA—considerably higher than the average long-term rental income.

2. Flexibility

Short-term letting gives you the option to block out dates for personal use. Whether you want to stay during Christmas or lend the property to friends, you remain in control of availability throughout the year.

3. Tax Benefits

If your property qualifies as a Furnished Holiday Let (FHL), you may be eligible for attractive tax advantages such as capital allowances, income splitting for couples, and Business Property Relief for Inheritance Tax. To qualify, your property must be available for letting at least 210 days and actually let for 105 days per year, among other requirements.

4. Growing Demand for Unique Stays

Visitors to Bath often seek charming, characterful places to stay—like Georgian townhouses or stylish modern apartments. If your property has architectural appeal or a central location, it’s more likely to attract strong bookings and earn high guest ratings.

The Cons and Challenges of Holiday Letting

1. Seasonal Variability

While Bath enjoys steady tourism, bookings can dip during off-peak months such as January or late autumn. Unlike long-term tenancies, income isn’t guaranteed every month.

2. Management Overhead

Running a holiday let is more like running a small business than managing a traditional rental. There’s a constant cycle of guest communication, housekeeping, check-ins, and maintenance to manage. Many owners choose to work with professional co-hosting services like Pass the Keys Bath, which can handle everything from marketing to cleaning—for a percentage of your earnings.

For owners living outside the city or those looking for a more passive income, outsourcing is often essential.

3. Initial Setup Costs

Starting a holiday let requires upfront investment in furnishings, decor, and photography. You’ll also need to budget for essentials like high-speed WiFi, utilities, linens, and welcome packs to meet guest expectations.

4. Regulatory Considerations

Short-term rentals are increasingly being scrutinized by local councils across the UK. While Bath currently does not have a formal licensing scheme for holiday lets, landlords must still meet health and safety regulations, fire safety laws, and obtain suitable insurance.

It’s also wise to stay informed about potential future changes, especially as more UK cities introduce measures to curb short-term letting in response to housing shortages.

Who Should Consider a Holiday Let in Bath?

Ideal for:

• Owners of second homes in Bath’s historic or central areas

• Investors seeking higher-than-average rental yields

• Remote owners using a management partner

• Retirees or families wanting occasional access to the property

Not Ideal for:

• Landlords seeking consistent monthly income with minimal involvement

• Those with properties in less touristy areas of Bath

• Owners unwilling to invest in property upgrades and furnishings

Final Thoughts: Is It Right for You?

Turning your Bath property into a holiday let can be a lucrative and enjoyable venture—especially in a city with such strong year-round tourism. However, it’s not without its challenges. Success depends on understanding seasonal trends, managing guest expectations, and staying on top of regulations.

If you’re unsure about the day-to-day demands of holiday letting, working with a trusted local management company like Pass the Keys Bath can provide the perfect balance of profitability and peace of mind.

Ready to explore holiday letting in Bath?
Get in touch with Pass the Keys Bath to find out how you can transform your property into a successful, hands-free holiday let.