Published 6 November 2026 · Illustrative examples
What the numbers tell us
A high nightly price does not guarantee a higher annual return.
Costs and restrictions to consider
Short lets involve booking fees, cleaning, turnover, vacancy, regulatory limits and management time. Lodger income can be steadier but has different legal and household implications. Compare annual net cash flow rather than headline rates.
Try your own numbers
Use the free calculator to explore how your result changes with different prices, occupancy and running costs. Treat any attractive projected income with caution until you have checked local comparables and legal conditions.
Source for tax rules: GOV.UK Rent a Room Scheme.
Compare the same twelve-month horizon
A lodger paying £700 monthly for twelve months provides £8,400 gross receipts. A short let charging £65 nightly for 100 paid nights provides £6,500 gross before fees and cleaning. The advertised nightly rate looks higher, but occupancy and turnover determine the comparison.
Use total expenses and management time
Estimate laundry, cleaning, utilities, booking fees, vacancy and time spent coordinating stays. Local short-let restrictions and the tax treatment of each arrangement may differ considerably.