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Serviced accommodation or a standard let: comparing the income

ByEverswick Properties

Short-stay accommodation can generate different levels of income from a standard tenancy, but the outcome depends on location, demand, occupancy, operating costs, furnishing, platform fees and applicable restrictions.

It is worth working through the figures for your own property before you buy furniture.

The gross figures

A two-bedroom flat that would let for £1,100 a month on a tenancy might achieve £120 a night as a short let. At 70% occupancy that is about £2,550 a month.

The costs a tenancy does not have

  • A management fee, charged as a percentage of booking income
  • Platform commission, typically 3 to 15% depending on the site
  • Gas, electricity, water and broadband: about £260
  • Council tax, or business rates if the property qualifies
  • Replacement of linen, crockery and furnishings: allow £75 a month
  • Specialist insurance, which costs more than a landlord policy

After these, the net figure is well below the gross. A short let can still earn more than a tenancy, but the gap is narrower than the nightly rate suggests, and it depends on occupancy holding up.

Income moves with the season

A tenancy pays the same in January as in July. Short lets do not. Properties near hospitals, industrial sites and city centres fill midweek all year with contractors and corporate guests. Leisure-led locations can halve in winter.

Check these before you start

  • Your mortgage: most buy-to-let products do not allow short lets
  • Your lease: many flats prohibit lets of less than six months
  • Planning: London limits short lets of whole homes to 90 nights a year, and other councils are introducing their own controls
  • Tax: the furnished holiday lettings regime ended in April 2025, so income is taxed like other rental income
  • Fire safety: a short let needs a written fire risk assessment

Which is right for your property?

Short lets work best for well-located flats and houses with parking, owned without a restrictive mortgage, where the owner is comfortable with income that varies. If you want certainty, a tenancy or guaranteed rent will suit you better.

We forecast both for every property we assess. See serviced accommodation management for how the service works.

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