Skip to content

Short-term rental feasibility

Test whether a holiday or short-stay let beats a standard let for a specific property.

In plain English

Before turning a home into a holiday let, check whether it would really earn more after all the extra costs, and whether the rules in that area allow it.

Switch to professional for underwriting detail.

Capital requirements

Furnishing and set-up on top of acquisition; working capital for the first season.

Cost assumptions to budget for

  • As serviced accommodation
  • Opportunity cost of a guaranteed long-let rent

Potential returns

Only worthwhile where the uplift over long-let survives conservative occupancy.

Main risks

  • Seasonality
  • Regulatory caps
  • Effort underestimated

Legal checks

  • Lease and mortgage permissions
  • Planning (change of use)

Regulatory checks

  • Local and national short-term let rules
  • Fire safety for paying guests

Is it suitable?

Often suits

  • Owners deciding between two letting models

Usually not suitable for

  • Areas with restrictive local rules

A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.

Step-by-step

  1. Gather comparable nightly rates and occupancy.
  2. Calculate long-let net income as a baseline.
  3. Run the calculator at expected and pessimistic occupancy.
  4. Check legal permissions before spending on furnishing.

Financial calculations

Utilities, broadband, council tax or business rates, insurance, software.

Greater London: 90 nights per calendar year without planning permission.

Serviced accommodation vs long let

Nights let219
Revenue£20,805
Platform fees£3,121
Cleaning£3,942
Management£0
Fixed costs£4,200
Property cost£9,000
Furnishing (annualised)£1,200
Net annual income−£658
Long-let net (same property cost)£3,000
Uplift over long let−£3,658
Break-even occupancy63%
  • ⚠ Short-let rules are changing: check planning, the lease, your mortgage and any registration scheme before committing.

Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.

Create a free account to save calculations.

Official sources

Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.

Not advice

This guide is general research. It is not legal, tax, financial, planning or investment advice. Speak to a qualified, regulated professional before acting.