Short-term rental feasibility
Test whether a holiday or short-stay let beats a standard let for a specific property.
Professional analysis
Feasibility = (net short-let income − long-let net) adjusted for risk and effort. Stress occupancy downwards by 15–25 points and include regulatory caps. FHL tax treatment ended in April 2025, so compare on the standard property-income basis.
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
- Gather comparable nightly rates and occupancy.
- Calculate long-let net income as a baseline.
- Run the calculator at expected and pessimistic occupancy.
- Check legal permissions before spending on furnishing.
Financial calculations
Serviced accommodation vs long let
- ⚠ 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
- Short-term lets: registration and planning (GOV.UK search)
- Abolition of the furnished holiday lettings tax regime (GOV.UK)
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice