What a holiday home in Dubai really earns for a Spanish owner or investor
· 7 min
A holiday let generates costs before the first booking arrives. We explain what the owner has to pay to get it going, which costs come round every year and why it is worth keeping a reserve for the unexpected.
Leticia Heres · · 7 min read

Before letting a holiday home in Spain, the owner has to cover the costs of setting it up, equipment, repairs, the initial clean, utilities, marketing and any applicable paperwork. You also need to plan for recurring costs and keep a reserve for maintenance and the unexpected, because the home generates costs even before the first booking arrives.
One of the most common mistakes is working out how much the home could earn without checking how much it costs to get it going and keep it running.
To get a realistic estimate, separate three blocks: initial investment, recurring costs and a reserve for the unexpected. Only then can you work out whether a holiday let leaves a big enough margin.
A furnished home is not the same as a home ready to host travellers.
Guests need to be able to use the property without knowing its layout, its fittings or its quirks in advance. That means checking comfort, cleanliness, access, connectivity, instructions and the condition of every item.
Costs before the first booking can include:
The investment will depend on the property's starting condition. A recently renovated home will need less preparation than one with worn furniture, old installations or incomplete equipment.
| Item | Why it should be included |
|---|---|
| Furniture | It must stand up to frequent use and make the stay easy. |
| Sleep | Mattresses, pillows and textiles have a direct impact on the guest's rating. |
| Kitchenware | It must match the property's advertised capacity. |
| Appliances | They must work properly and suit the type of stay. |
| Internet | Most travellers expect it. |
| Air conditioning and heating | Can be essential depending on the destination and time of year. |
| Access | Must allow safe, well-coordinated arrivals and departures. |
| Initial clean | Sets the standard the operation will start with. |
| Photos | Shape how the listing looks and how well it converts. |
| Repairs | Stop the first guests from finding foreseeable faults. |
The aim is not to fill the property with unnecessary items. It is to prepare a home that is comfortable, safe, practical and consistent with what you advertise.
Every stay generates variable costs. The higher the turnover, the more often you need to clean, change textiles, restock products and coordinate arrivals and departures.
Per-booking costs can include:
A home with many short stays can generate more bookings, but also more cleans, laundry, wear and operational work.
That's why you shouldn't look only at occupancy. You also need to work out the margin each booking leaves you.
Some costs remain even in months with little demand or no guests.
Fixed or periodic costs can include:
These costs explain why viability has to be calculated over a full year and not just on the high season.
The article on how to calculate the profitability of a holiday home in Spain shows how to build these costs into your net profit calculation.
| Variable cost | When it goes up |
|---|---|
| Cleaning | With every check-out and when extra work is needed. |
| Laundry | With every change of textiles. |
| Basic supplies | Depending on the number of stays and guests. |
| Water and electricity | Depending on occupancy, the weather and usage habits. |
| Maintenance | With use and wear of the property. |
| Replacements | When items break, go missing or wear out. |
| Platforms | Depending on the bookings generated and the channel's terms. |
| Professional management | When fees are calculated on income or bookings. |
A longer stay can reduce how often certain items come up. However, the result depends on the rate, demand, consumption and the specific accommodation model.
Booking platforms may charge fees for intermediation, payments and the services used. The structure is not the same on every channel or for every property.
Airbnb uses different commission models. The owner should check in their account how much is deducted from the payout and what amounts are added to the price the guest sees.
Booking.com applies the percentage set in each property's agreement and invoices the commissions for bookings made through the platform.
So you shouldn't automatically apply a single percentage. Use the actual terms of your account and check:
In this guide you can see in more detail how Airbnb and Booking commissions work.
You should also tell platform commissions apart from a management company's fees. The article on how much a company charges to manage a holiday rental explains which services may be included.
Maintenance is one of the items most often underestimated.
In a holiday home, lots of different people use the furniture, textiles, appliances, doors, bathrooms and kitchen. This can increase wear and means the property needs regular checks.
Maintenance can include:
Maintenance shouldn't only be budgeted for when something breaks. It's worth building up a regular reserve for upkeep and replacements.
A holiday home's obligations depend on the autonomous community, the municipality, the features of the property and the way the service is provided.
Depending on the case, there may be costs related to:
There is no single administrative cost for the whole of Spain. Before publishing, check the regulations of the relevant autonomous community and town hall.
When it comes to tax, treatment also depends on the owner's situation and the type of services offered. Don't assume that all holiday rentals are taxed in exactly the same way.
The section on registration and regulations for holiday homes gives more information on administrative requirements, although you should always check the rules in force in the specific location.
The owner generally bears the investment in and upkeep of the property:
The guest pays the total price shown during booking. Depending on the platform, the settings and the applicable regulations, this may include:
Adding a fee doesn't remove the cost for the owner from a commercial point of view. A final price that is too high or unclear can reduce the listing's conversion.
Organise the costs into three blocks.
Use this formula:
Initial investment + fixed costs for the period + expected variable costs + safety reserve = budget needed
There is no right figure for every home. Ask for quotes and use real data from the property.
Costs should be compared with annual net profit, not just with turnover.
Look at:
You can also compare a holiday let with other types of rental using this comparison between holiday and long-term lets.
A home is not viable just because it can generate bookings. It has to produce a big enough margin to cover its costs, keep the property in good condition and make up for the effort and risk involved.
Before welcoming guests, the owner covers the set-up: functional furniture, mattresses and textiles, kitchenware, appliances, internet, heating and cooling, an access system, an initial deep clean, repairs, photography, preparing the listing and whatever formalities apply. The investment depends on the condition of the property: a newly refurbished home needs less preparation than one with worn furniture, old installations or incomplete equipment.
Some costs are still there in the months without guests: comunidad de propietarios (owners' association) fees, IBI (Impuesto sobre Bienes Inmuebles, Spain's local property tax), insurance, internet, minimum utility charges, preventive maintenance, installation inspections, software or an accountant if you hire them, financing on the property if there is any and whatever charges apply in each location. That is why viability is calculated over a full year and not just on high season.
There is no single percentage. Airbnb uses different commission models and Booking.com applies the percentage set in each property's agreement. The right approach is to start from the actual terms of your account and check the channel's commission, the taxes applied to that commission, promotional programmes, the discounts you absorb, payment costs and any additional services you have signed up for.
Split it into three blocks: the set-up (repairs, equipment, textiles, photography, initial cleaning, formalities), monthly operations (utilities, cleaning, laundry, commissions, management, maintenance) and a safety reserve for the unexpected, damage, cancellations and months of lower demand. Add them up: initial investment, fixed costs for the period, expected variable costs and the reserve. There is no figure that works for every home: get quotes and use real data from the property.
The owner covers the preparation and equipment, maintenance, insurance, utilities, marketing, management, replacements, formalities and the commissions of the business. The guest pays the total price of the booking, which depending on the platform and the regulations may include the nightly rate, the cleaning fee, taxes or tourist levies and clearly disclosed additional services. A high or unclear final price can cost you bookings.

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