According to Airbtics for instance, the average daily rate for an Airbnb in the UK is around £175. This means that to match the average monthly rent for a long-term let in the UK, you would only need to rent out your property for 10 nights a month on Airbnb.
Using these figures as a guide, to make an annual rental income of £20,000 through short-term lets, your property would only need to be occupied for 115 nights a year, which still meets HMRC’s minimum requirement.
Of course, entering the short-stay accommodation market carries with it a certain degree of risk, the main one being the possibility of void periods when your property is unoccupied.
To avoid this, location is key. So investing in a place with popular tourist attractions and that hosts regular events like concerts and high-profile football matches, for instance, is always a safe bet.
Short-term letting can also require a significant amount of work in terms of the maintenance of the property, overseeing the booking process and responding quickly to any tenant issues.
If this is a concern, however, enlisting the services of an experienced property management company is certainly something to keep in mind.
So, are short-term or holiday lets a good investment?
As outlined above, when managed, marketed and selected correctly, investing in a short-term serviced property can be a highly lucrative investment with the potential to bring high, long-term returns. All things considered, they are one of the best forms of buy-to-let investment in terms of generating a high rental income.