Buyers very often research the purchase thoroughly and the annual outgoings barely at all. That is the wrong way round. The purchase happens once. The holiday lodge running costs happen every year you own.
Nothing here is financial advice. A lodge is a lifestyle purchase first and foremost, and the figures will vary between parks, lodge sizes and years. What this article gives you is the full list of headings to ask about, so nothing lands as a surprise twelve months in.
The good news is that holiday lodge running costs are not mysterious. They break down into six predictable headings, and a reputable park will talk you through every one of them openly before you reserve. If a park will not put the annual figures in writing, treat that as a signal in itself.
Site fees, also called the annual pitch fee
Site fees are the largest single line in anyone’s holiday lodge running costs. The fee covers your lodge’s pitch for the season, plus the upkeep of everything around it: roads, grounds, lighting, drainage, security and the shared facilities you use when you are here.
Fees usually increase a little each year in line with running cost inflation, and the terms of those increases should be set out in your agreement. Ask to see how the fee has moved over the last five years rather than just this year’s number. A park with a steady, explainable track record is telling you something useful.
Utilities: electricity, gas and water
Utilities are the most variable element of holiday lodge running costs. They are metered to your own lodge, so you pay for what you actually use, and for most owners that is a modest figure. A holiday lodge is occupied in bursts rather than continuously, and modern lodges are far better insulated than the static caravans people often picture.
Two practical points. Winter use costs more than summer use, which matters if you intend to come down in January. And if you let the lodge out, the guests’ usage shows up on your bill, so build that into your letting sums rather than treating income as clean profit.
Insurance, servicing and maintenance
Insurance is a small but non-negotiable part of holiday lodge running costs. Your lodge needs its own policy. It is not covered by your home insurance and it is not the same as standard household cover. Specialist holiday lodge insurance deals with what actually happens on a coastal park: storm damage, escape of water, accidental damage and, if you let, public liability for guests.
Maintenance is the line within holiday lodge running costs that buyers most often forget. An annual service for the boiler and gas appliances is sensible and normally required. Beyond that a lodge needs the same light attention as a small house: the decking checked, the odd exterior touch-up, gutters cleared, a damp check. Decking and hot tubs carry their own small consumables cost, so ask about those specifically.
Rates, ground rent and what you get back
Rates are the heading within holiday lodge running costs that causes the most confusion. Holiday lodges on a licensed holiday park are not residential dwellings, so they do not attract council tax in the way a house does. Where a lodge is available to let commercially it may fall under business rates instead, and small business rate relief often applies. The rules are set nationally and do change, so read the government guidance on self-catering and holiday let accommodation rather than relying on what someone told you in a bar. We have covered this in more detail in our guide to council tax on a holiday lodge in Cornwall.
Where a lodge is sold on a long lease there may also be a ground rent element alongside the site fee. That is the last of the holiday lodge running costs headings, and it is worth asking which structure applies and what the remaining term is. Set against all of it, the site fee is buying you an indoor heated pool, Fort Fitness, The Fort Inn, gated access with CCTV and grounds kept to a standard you would struggle to match on a private plot.
The six headings to ask about
- Site fee or annual pitch fee, and how it is reviewed
- Electricity, gas and water, metered to your lodge
- Specialist holiday lodge insurance
- Business rates, where commercial letting applies
- Annual gas service, maintenance and decking upkeep
- Ground rent, where the lodge is sold on a long lease
Find us
Whitsand Bay Fort, Donkey Lane, Whitsand Bay, Torpoint, Cornwall PL10 1JZ
Common questions
What is the biggest single running cost?
The annual site fee, every time. It covers your pitch plus the upkeep of the roads, grounds, security and shared facilities across the park, and it is usually reviewed once a year.
Do I pay council tax on a holiday lodge?
No. A lodge on a licensed holiday park is not a residential dwelling. Where it is available to let commercially it may fall under business rates instead, and small business rate relief often applies.
Can letting income cover the running costs?
It can offset a meaningful share for many owners, but it should never be treated as guaranteed. Occupancy moves with the season, the weather and the wider economy, and a lodge cannot be used as a main residence.
How much should I allow for the unexpected?
Around ten per cent on top of your six headings is a sensible contingency. In the years nothing goes wrong, the money simply rolls forward.
Want the actual figures rather than general ranges? Our ownership costs page sets them out in full, you can browse the current lodges for sale, or request a brochure and read it properly at home. Understanding holiday lodge running costs in full is the single best preparation you can do.