- you will rent maybe 150 nights a year;
- holiday rental agencies charge circa 25% of the letting fee;
- you have to pay council tax/business rates, in our case circa £1200;
- you have to pay for a TV licence;
- you have insure for holiday rental, it is higher than normal home insurance;
- you have to keep the furnishing and property well maintained, redecorated once a year;
- you have to pay for power, water, unlimited broadband;
- you have to have the place cleaned throughout at the end of each rental;
- bed and bath linen has to be laundered after each rental;
- linen has to be replaced immediately if stained or worn;
- gas safety checks have to be paid for every year;
- electric safety checks have to be paid for once a year.
Any remaining profit is taxed as part of your income. I didn't mention the cost of financing the property purchase if you need a mortgage.
if you sell the place any profit on the sale is subject to capital gains tax.