Holiday let management in Devon: what owners should check before choosing an agency
By Dominic Hiatt, Founder, Newspage ·
Holiday let management in Devon can cost owners 15–20% of their booking income for marketing alone, according to a South Devon letting agency. Full management and changeovers cost extra.
Kate Allen, who runs the Kingsbridge-based lettings agency, Finest Stays, told Newspage that choosing an agency “on commission alone can be a false economy”. She also warned owners to “beware impressive income forecasts”.
Owners are currently weighing up their options after two big changes.
The furnished holiday lettings tax regime was abolished in April 2025. Meanwhile, South Hams District Council has charged a 100% council tax premium on second homes since 1 April 2025.
How much does holiday let management cost in Devon?
Most agencies charge a percentage of the booking income a property earns. What that fee covers varies from agency to agency. Owners should ask for a written list of what is included and what costs extra, such as cleaning, laundry, changeovers and general property maintenance.
Kate Allen, Owner at Kingsbridge-based Finest Stays, said: "Choosing a letting agency on commission alone can be a false economy. Marketing fees typically range from 15%–20%, with full management and changeovers costing extra. What matters is the return an owner actually achieves."
What should owners look for in a holiday letting agency?
An agency's fee is only one part of the decision. And lower fees may not always offer the best value. How an agency markets a property, how many bookings it wins directly and how it sets prices will all affect what an owner earns.
Allen added: "Beware impressive income forecasts. Anyone can promise high returns; ask for evidence of bookings achieved for comparable properties. Understand how the agency markets your home, its direct-booking success and how actively it manages pricing."
Active pricing can be crucial, as keeping the price of a holiday let flexible can help avoid the dreaded void period.
Which contract terms should owners check before signing?
Before signing, owners should check the contract length, notice period and any fees for leaving. They should also check how many weeks they can use the property, and who sets the nightly price.
Allen said owners should always "scrutinise exit fees, owner-use flexibility and whether minimum rental values can be protected".
How have tax and council tax changes affected Devon holiday let owners?
The furnished holiday lettings regime ended on 6 April 2025 for income tax and capital gains tax. For corporation tax, it ended on 1 April 2025.
Holiday lets lost access to reliefs including business asset disposal relief, and owners no longer escape the restriction on mortgage interest relief.
In the South Hams, second homes now pay double council tax following the 100% premium introduced on 1 April 2025.
A holiday let in England can pay business rates instead of council tax if it meets two tests. It must be available to let for at least 140 nights a year and actually let for at least 70. These rules have applied since 1 April 2023.
Allen said: "With rising ownership costs and second-home council tax premiums, achieving sufficient booked nights to qualify for business rates is increasingly important."
When does it make sense to self-manage a holiday let?
Owners who manage their own property keep the agency fee. In return, they handle the bookings, guest messages, cleaning and repairs themselves.But that's not always possible if an owner is in Durham when a boiler dies in Devon, or works full-time.
Allen said: "Self-management works best for owners living locally who can respond quickly to problems. Ultimately, a great agency should more than earn its fee through stronger revenue, local expertise and genuine peace of mind."
