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Legal Documents

Holiday Letting Agreement: A Property Owner's Guide

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A holiday let agreement template for letting a property as a short-term holiday rental. Holiday lets fall outside the Housing Act 1988 — they are governed by ordinary contract law rather than housing legislation, which makes them more flexible but also less standardised.

What this document is

A holiday let agreement governs a short-term, fully-furnished let where the occupant does not establish the property as their home. It can range from a single weekend to several weeks. Crucially, the let must genuinely be for holiday purposes — using a "holiday let" agreement to dodge tenancy law on a residential let is unlawful and the agreement will be re-classified by the courts as a tenancy.

When to use it

Use this agreement when:

  • The property is let for a holiday or short break (typically 1-28 days).
  • It is fully furnished, with all utilities included.
  • The occupant has another permanent home elsewhere.
  • The property is genuinely available to multiple holidaymakers across the year.

If any of those conditions fail, you probably need a residential AST instead.

Tax implications post-April 2025

Furnished holiday lets (FHLs) had favourable tax treatment until 6 April 2025, when the FHL regime was abolished. Holiday lets now fall under the standard property income rules — losing benefits like full mortgage interest relief, capital allowances, and pension-relevant earnings status.

The Net Lawman template doesn't address tax — speak to your accountant about the post-April 2025 position before planning a new holiday let business.

What's included

  • Booking confirmation and terms of stay.
  • Cancellation and refund provisions.
  • House rules (noise, smoking, pets, parties).
  • Limit of liability and damage deposit.
  • Check-in and check-out procedures.
  • Insurance and personal belongings clauses.