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Serviced accommodation

Furnished short stays for business and leisure guests, run like a small hotel.

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In plain English

You furnish a property and let it by the night through booking platforms or direct to companies. Nightly prices can earn more than a normal let, but bookings go up and down, and there is a lot of cleaning, guest messaging and admin.

Switch to professional for underwriting detail.

Capital requirements

Purchase deposit (often higher with specialist lenders) plus furnishing, photography, licences and working capital for slow months.

Cost assumptions to budget for

  • Platform commission
  • Cleaning and laundry per stay
  • Management/co-hosting
  • Utilities, broadband, council tax or business rates
  • Insurance for paying guests
  • Furnishing replacement

Potential returns

Highly variable. Compare against a long let; the calculator shows break-even occupancy.

Main risks

  • Seasonality and local competition
  • Planning enforcement or new registration rules
  • Lease or mortgage prohibitions
  • Neighbour complaints
  • Platform policy changes

Legal checks

  • Leases and mortgages often prohibit short lets
  • Planning permission may be needed for change of use
  • Fire safety obligations as a business premises

Regulatory checks

  • Fire risk assessment (Regulatory Reform (Fire Safety) Order 2005)
  • 90-night annual limit in Greater London without planning permission
  • Proposed national short-term let registration and planning changes — check status
  • Business rates vs council tax depending on availability and letting thresholds

Is it suitable?

Often suits

  • Operators with time or a trusted manager
  • Locations with year-round demand (hospitals, business hubs)

Usually not suitable for

  • Leasehold flats with prohibitive leases
  • Investors needing stable monthly income

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

Step-by-step

  1. Check lease, mortgage and planning position.
  2. Research comparable listings' prices and calendars.
  3. Run the serviced-accommodation calculator against a long-let benchmark.
  4. Budget furnishing and set-up.
  5. Complete fire risk assessment and insurance.
  6. Launch, monitor occupancy and pricing monthly.

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.

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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.