Short-let investment questions, answered
12 questions people actually ask before buying a short-let property — each answered in the first sentence, with the numbers, the sources, and an honest note on where the answer stops holding. No throat-clearing, no “it depends”.
Returns & numbers
What a short let actually earns, how to measure it, and how it compares to the alternative.
Is Airbnb still profitable?
Yes — a well-run entire-home short let still nets 5-8% on purchase price in the markets we track, down from the 8-12% that was routine in 2019.
What is a good Airbnb occupancy rate?
A good Airbnb occupancy rate is 65-75% for a full-time entire-home listing in a year-round city market, and 45-60% in a seasonal coastal or ski market.
How much can I make on Airbnb?
A typical two-bedroom entire-home listing in a mid-sized UK city grosses £18,000-£28,000 a year and nets £11,000-£16,000 before mortgage.
What is RevPAR in short-term rentals?
RevPAR is revenue per available night — average daily rate multiplied by occupancy — so a listing at £140 a night running 65% occupancy has a RevPAR of £91, or £33,215 a year.
Getting started
Choosing a market, sizing the deal, and working out what has to go right.
Is Airbnb better than long-term rental?
Short-letting grosses 1.5-2.2x the equivalent long-term rent in most markets we track, but nets only 10-25% more once cleaning, management and voids are paid.
How do I find a good Airbnb investment area?
Divide an area's annual short-let RevPAR by its median two-bed asking price and shortlist anything clearing 9% gross or better — then eliminate on regulation before you look at a single property.
What occupancy do I need to break even on an Airbnb?
Most UK short-let operations break even between 42% and 55% occupancy — roughly 155-200 booked nights a year — with leverage the single biggest driver.
Rules & licensing
Night caps, licence regimes and where the regulatory direction of travel is heading.
Do I need a licence for Airbnb?
In most major cities, yes — a licence or registration number is now mandatory in the majority of the 117 markets we track, and since May 2026 EU platforms must verify it.
What is the 90-day rule in London?
The 90-day rule caps entire-home short lets anywhere in Greater London at 90 nights per calendar year, under section 25 of the Greater London Council (General Powers) Act 1973.
Are Airbnb regulations getting stricter?
Yes — more than 30 major cities have tightened short-let rules since 2023, and EU Regulation 2024/1028 has required a verified registration number for every EU listing since May 2026.
Costs & risk
The costs nobody quotes you, and how much to trust the income numbers you are shown.
What are the hidden costs of running an Airbnb?
Budget 28-40% of gross revenue for operating costs before your mortgage — laundry, furnishing replacement and specialist insurance alone run £2,600-£4,200 a year on a two-bed.
How accurate is Airbnb income data?
Scraped Airbnb income estimates land within 10-20% of reality for professionally-run listings and 30-50% off for the long tail, because they infer bookings from review counts.
Want these numbers for your address?
General answers get you to a shortlist. A HostPal Invest report runs the occupancy, nightly rate, RevPAR, regulation risk and a buy / wait / avoid verdict for one specific property or drawn area, in any of 117 markets. Street-Level reports from £29.