to answer the op..
sorry there is a lot of rubbish in the replies above.
you do not need business rates for a start, check the regulations and you will find there is a certain amount of time you can short let for. local authorities may vary.
that ‘people wreck the place’ is also rubbish. you will get damage, people will destroy stuff and not tell you, but 95% of people are brilliant. we go out of our way to personalise the experience in the hope people care a bit more. we actually find that the worse people tend to be at the height of the season and are paying the most cash. but again, most people are lovely and do look after the place.
do hire peak season and key holidays, thats when you make your money for goodness-sakes.
the thing you have to remember is that people now expect better than their home, the days of cheap furniture and a 50p leccy meter are long gone.
i would honestly advise using an agency for the first year to get a feel, expect to pay about 20% commission although when vat etc are added its more like 25% of the total rental. i actually do not rate agencies, but at first its good to have someone who can sort problems for you. do shop around though and speak to as many as possible. also via an agency you will see what your cottage is worth. we still use a price band based upon the last company we used.
a cleaner/changeover person will cost you maybe as much as £150 (wife’s freind has a small business doing cottages and that is her rate for a fully managed changeover), some totally hands off cottages down here actually make a loss of winter short breaks but then its all tax deductible.. again the agency can help with this.
airbnb is a nightmare for a holiday let, the pricing system is based around single nights and is hard to do weeks especially as the prices increase in the year.
i would also advise setting up your own website, its quite easy to do the seo so that you can be found for people doing a very local search.
thats it really, its a good little business if you get it right but self managing does take a lot of time and patience. my email is in my prof if you want any more advice and i’ll be happy to give you my website and otrher links we are on.