It's the question every landlord asks us: would my property earn more on Airbnb than with a tenant? The honest answer is "often, but not always". Here's how to compare them properly.
Worked example: a 2-bed city flat
EXAMPLE NUMBERS ONLY. These are made up to show the method. They are not our results or a promise. Every property and area is different.
| Per month | Long let | Short let (Airbnb) |
|---|---|---|
| Income | £1,100 rent | £95 a night × 70% occupancy × 30.4 nights = £2,022 |
| Platform fees | – | –£300 |
| Cleaning & laundry | – | –£330 |
| Bills (energy, water, broadband, TV) | Paid by tenant | –£200 |
| Council tax | Paid by tenant | –£140 |
| Consumables & repairs | –£40 | –£80 |
| Management | –£110 (10%) | –£350 (around 20%) |
| What's left before mortgage and tax | £950 | £622 |
In this example, the long let wins. Now change one thing: raise the average nightly price to £120 and occupancy to 75%. Income becomes about £2,736 and the short let pulls ahead. The method matters more than the headline nightly rate.
What decides the result
- Guest demand all year, not just summer. Business travel, contractors, hospitals and universities keep weekdays busy.
- Nightly price and occupancy together. A high price with empty nights earns less than a fair price that's full.
- Costs you control: cleaning rates, linen, energy use and management fees. See what management usually costs.
- Furnishing up front. A short let needs good furniture, linen and kitchen kit before the first guest.
- Tax. Since April 2025 holiday lets are taxed like other rentals. Read the FHL changes.
Consents you'll need first
- Mortgage lender. Most buy-to-let and residential mortgages don't allow short lets without permission.
- Lease and freeholder for leasehold flats. Many ban short lets.
- Insurance designed for short lets.
- Planning. In London, the 90-night rule applies. A national register is also expected from March 2027.
The middle option: guaranteed rent
If you like the idea of earning more but don't want the ups and downs, guaranteed rent gives you a fixed monthly payment, usually with no void periods, while we run it as a short or mid-term let. You give up some upside in exchange for certainty.
Get a number for your property
Our free income calculator gives a quick, rough estimate for your town and property type. Then we'll compare it against your long-let rent and tell you honestly which makes more sense.
Thinking of letting your property short-term?
We manage Airbnb, serviced accommodation and holiday lets across England and Wales, from city flats to countryside cottages and hotels. See what yours could earn.
This guide is general information, not legal, tax or financial advice. Rules change, so check GOV.UK, GOV.WALES or a qualified adviser before you act.