Understanding the Costs of Owning a Holiday Lodge: Essential Insights

Owning a holiday lodge is a dream for many; imagine weekend escapes to nature, a cosy base for family getaways, or even a source of passive income. But, before you take the leap into holiday home ownership and lodge ownership, it’s important to understand the full picture when it comes to cost.

From the initial holiday home investment to ongoing upkeep and potential rental returns, here’s a full breakdown of the costs of owning a holiday lodge, plus practical tips to budget wisely and maximise your return.

As our infographic below shows, there’s a lot to factor into the cost of owning a lodge.

Download our infographic here.

What to Consider Before Buying a Holiday Home

Buying a holiday home can be a significant investment, and it’s essential to consider several factors before making a decision. Here are some key things to consider:

Location

The location of your holiday home is crucial. Consider the proximity to amenities, transportation links, and local attractions. Also, think about the type of location you prefer, such as rural or urban.

Type of Holiday Home

Decide what type of holiday home you want to buy, such as a static caravan, lodge, or chalet. Consider the size, layout, and features that are important to you.

Site Fees

Site fees are an annual cost for holiday home owners to cover park maintenance and services. These fees can vary depending on the park and location, so it’s essential to factor them into your budget.

Running Costs

In addition to site fees, you’ll need to consider other running costs of a holiday home, such as energy costs, water rates, and council tax. These costs can add up, so make sure you factor them into your budget. This is something a lot of holiday home owners forget to factor in.

Ongoing Maintenance

Holiday homes require ongoing maintenance to keep them in good condition. Consider the cost of maintenance and repairs, and factor them into your budget.

Holiday Home Insurance

It’s essential to have insurance to protect your holiday home or static caravan against damage, theft, and other unforeseen events. Consider the cost of insurance and factor it into your budget.

Pitch Fees

Pitch fees are the cost of keeping your holiday home on a park. These fees can vary depending on the park and location, so it’s essential to factor them into your budget.

Additional Running Costs

Consider any additional running costs of your holiday home, such as swimming pool maintenance, gardening, and other services. Running costs are a big part of holiday home ownership.

Resale Value

Finally, consider the resale value of your holiday home. Will it hold its value over time, or will it depreciate?

By considering these factors, you can make an informed decision about buying a holiday home and ensure that it’s the right investment for you.

Initial Purchase: More Than Just the Lodge

The most obvious cost is the purchase of the holiday lodges themselves. But beyond the sticker price, there are several other initial expenses that come into play. Key initial costs include:

The Lodge Purchase

Whether you buy new or pre-owned, the cost will vary based on size, design, and location.

Pitch Fees

Lodges are usually situated on dedicated holiday parks, which charge annual site fees for the plot your lodge occupies.

Legal and Administrative Fees

These may include conveyancing (if required), registration, or transfer fees depending on the park’s policies.

Furnishing and Fittings

While many lodges come fully furnished, you may want to personalise or upgrade items to your taste.

Optional Extras

Things like decking, hot tubs, or outdoor storage can be added to enhance your lodge but will add to your initial outlay.

Ongoing Maintenance and General Upkeep

Owning a lodge is not just a one-time investment, it requires consistent care to maintain its value and appeal, especially if you intend to let it out.

It’s also important to consider protecting your holiday home whilst you are away, especially during the winter months. Many parks offer winterization services to prevent damage and ensure peace of mind.

Recurring maintenance costs might include:

• Annual inspections and servicing (e.g., boiler, gas, electrical)
• General repairs (e.g., plumbing, wear and tear, furniture)
• Cleaning between visits or rentals
• Grounds maintenance, especially if your pitch includes private outdoor space

Even if your holiday park handles some of these services, they may come at an additional charge or be bundled into site fees.

Utilities and Day-to-Day Running Costs

Just like any property, your holiday lodge has daily running costs, even when you’re not staying there regularly. These typically include:

• Electricity and Gas – Usage will vary depending on insulation, heating type, and how often the lodge is occupied.
• Water and Sewage – Sometimes included in your pitch fees, but not always.
• Internet and Entertainment – Many owners opt to install Wi-Fi, smart TVs, or satellite services for convenience or to appeal to renters.
• Insurance – You’ll need a dedicated holiday home insurance policy, which differs from standard home insurance.
• Swimming Pools – If your holiday park has swimming pools, consider if there’s any costs associated with them, which can add to your overall running costs.

Rental Income and Letting Costs

One of the most attractive aspects of lodge ownership is the potential to earn income by renting it out when you’re not using it. However, earning rental income comes with its own set of costs and responsibilities.

Keep in mind that site fees vary significantly based on the type of park you choose, which can impact your overall rental income and profitability.

Things to account for:

• Marketing and Booking Fees – If you list through holiday rental platforms or use a letting agency, you’ll pay commission or service fees.
• Cleaning and Changeovers – Regular cleaning between guest stays is essential to maintain quality standards and get positive reviews.
• Guest Essentials – Linen, toiletries, kitchen supplies, and consumables all add up over time.
• Management Fees – If you’re not local or don’t want to self-manage, you may need to pay someone to handle guest check-ins, maintenance, and emergencies.

Budgeting for the Long Term

To make lodge ownership sustainable and enjoyable, smart budgeting is key. It’s not just about covering costs, it’s about planning for the future. Consider these strategies:

• Create an annual cost forecast to track your expected outgoings and income.
• Factor in seasonality, as rental income can fluctuate dramatically throughout the year.
• Account for depreciation, as Lodges can depreciate over time, so consider how long you plan to own it and what your long-term return might look like.

Keep detailed records of all expenses and income. Not only will this help you stay on top of your finances, but it can also help when filing taxes or planning upgrades.

Final Thoughts: Is a Lodge Right for You?

The costs of owning a holiday lodge can be manageable and even profitable, with the right planning.

While the initial purchase is a major commitment, ongoing expenses like maintenance, utilities, and site fees should also be factored into your budget.

On the flip side, the ability to earn rental income can help offset many of these costs, and potentially turn your lodge into a smart lifestyle investment.

Ultimately, owning a lodge isn’t just a financial decision, it’s a lifestyle one. With realistic expectations, smart budgeting, and a bit of strategy, you can enjoy both the personal and financial rewards of your own holiday escape.