The promise of short-term letting income is enticing: higher nightly rates, flexible availability, and the ability to use your property when it suits you. But what do the numbers actually look like? This guide cuts through the marketing hype and gives you a realistic breakdown of short-term let income across different UK cities, including the costs and considerations that many guides conveniently overlook.
The Income Potential: City by City
Short-term let income varies enormously depending on location, property type, and occupancy rates. Here are realistic gross income figures for a well-maintained one-bedroom flat based on 2026 market data:
London (Zone 2): Nightly rate £90 to £130. At 75% occupancy, monthly gross income ranges from £2,025 to £2,925. Annual gross potential: £24,300 to £35,100.
Manchester (city centre): Nightly rate £65 to £95. At 70% occupancy, monthly gross income ranges from £1,365 to £1,995. Annual gross potential: £16,380 to £23,940.
Birmingham: Nightly rate £55 to £85. At 65% occupancy, monthly gross income ranges from £1,072 to £1,657. Annual gross potential: £12,870 to £19,890.
Edinburgh: Nightly rate £70 to £110. At 70% occupancy, monthly gross income ranges from £1,470 to £2,310. Annual gross potential: £17,640 to £27,720.
Leeds/Bristol/Glasgow: Nightly rate £50 to £80. At 65% occupancy, monthly gross income ranges from £975 to £1,560. Annual gross potential: £11,700 to £18,720.
Understanding Occupancy Rates
The occupancy rates above are realistic averages, not best-case scenarios. Many short-term let guides quote occupancy rates of 80 to 90 percent, but these figures are aspirational rather than typical, particularly for landlords who are not actively managing their listings on a daily basis.
Occupancy depends on several factors: your pricing strategy, the quality of your listing, your responsiveness to enquiries, seasonal demand, and the platform you list on. Niche platforms like PrivatePads can actually deliver higher occupancy rates than mainstream platforms because the audience is more targeted and the competition is lower — your property is not competing against thousands of identical listings.
A realistic first-year occupancy rate for a new listing is 55 to 65 percent. With experience, positive reviews, and returning guests, this can grow to 70 to 80 percent by the second year.
The Costs You Need to Account For
Gross income is not profit. Before celebrating your potential earnings, subtract these costs:
Platform fees: Most platforms charge hosts between 3 and 15 percent of each booking. On a £100-per-night booking, this means £3 to £15 per night goes to the platform.
Cleaning: Professional cleaning between guests typically costs £40 to £80 per turnover for a one-bedroom property, depending on your location and the cleaner's rates. At 75% occupancy with an average stay of 4 nights, that is roughly 5 to 6 turnovers per month, costing £200 to £480.
Utilities: You will cover gas, electricity, water, WiFi, and council tax. For a one-bedroom flat, budget £200 to £350 per month.
Consumables: Toiletries, cleaning supplies, tea and coffee, fresh linen replacements — these add up to £50 to £100 per month.
Maintenance and repairs: Short-term lets experience more wear and tear than long-term tenancies. Budget 5 to 10 percent of gross income for ongoing maintenance.
Insurance: Standard landlord insurance does not cover short-term lets. Specialist short-let insurance costs £500 to £1,200 per year depending on the property and location.
Net Income: The Real Numbers
Taking our London Zone 2 example with a gross income of £2,500 per month (midpoint estimate), a realistic monthly cost breakdown looks like this: platform fees £200, cleaning £350, utilities £280, consumables £75, maintenance reserve £125, insurance £75. Total monthly costs: approximately £1,105. Net monthly income before mortgage and tax: approximately £1,395.
Compare this to a long-term tenancy for the same property, which might yield £1,600 to £1,800 per month in rent with significantly lower management costs (perhaps £200 to £300 per month including agent fees and maintenance). The net income from a long-term let might be £1,300 to £1,500 per month — broadly similar to the short-term let but with far less work involved.
When Short-Term Lets Win
The financial case for short-term letting becomes compelling in specific scenarios. Properties in high-demand locations with strong seasonal or event-driven demand can achieve occupancy rates and nightly rates that far exceed long-term rental equivalents. Properties that attract repeat professional guests — such as those listed on PrivatePads — benefit from lower marketing costs and higher occupancy over time.
Short-term lets also offer flexibility that long-term tenancies do not. You can use the property yourself during quiet periods, adjust pricing in response to market conditions, and exit the arrangement without the legal complexity of ending a tenancy agreement.
Making It Work
The landlords who earn the most from short-term lets treat it as a business, not a passive income stream. They invest in quality furnishings, respond to enquiries promptly, maintain their properties meticulously, and price strategically based on demand. They also choose their platforms carefully — listing on a niche platform alongside or instead of mainstream options can significantly improve both occupancy and the quality of guests.
If you are considering entering the short-term let market, start with realistic expectations. The income potential is genuine, but it requires active management, upfront investment, and a willingness to treat your property as a professional operation.