How rent-to-SA works
Rent-to-SA, sometimes called short-let arbitrage, means renting a property from a landlord on a fixed monthly rent and letting it to guests by the night. There's no purchase, so no mortgage or stamp duty, but the rent to the landlord becomes a large fixed cost that has to be covered every month regardless of bookings.
That makes the margin between nightly income and fixed costs thinner than in a purchased SA property, where the mortgage is often smaller than a market rent. Small changes in occupancy or nightly rate move the result a long way.
Breakeven occupancy and quiet months
The calculator solves for the occupancy that exactly covers the rent, bills and every variable cost. Compare it with the year-round occupancy similar listings actually achieve, not a summer peak. If breakeven sits above realistic occupancy, the deal loses money even when it's busy; if it sits just below, one quiet season can wipe out the year's profit.
Payback over the contract
Set-up costs for serviced accommodation are high: furniture, dressing and photography all come before the first booking. The calculator shows how many months of profit it takes to recover that cash and the total return over the contract, including the landlord's deposit coming back at the end.
Permissions to check first
You need the landlord's written consent to short-term letting, and the landlord's mortgage, insurance and any lease must allow it. In London, short lets beyond 90 nights a year need planning permission, and other councils have their own rules. Check these before you commit to the rent.