How serviced accommodation numbers work
Serviced accommodation earns per night rather than per month, so income depends on two numbers: the average nightly rate and how many nights are booked. The calculator blends weekday and weekend rates across a typical week, applies your occupancy to an average month, and gives you gross booking income.
Costs then come in three layers. Percentage costs (platform commission, card fees and management) rise and fall with bookings. Per-stay costs, mainly cleaning and laundry, depend on how often guests change over. Fixed costs (council tax or business rates, utilities, broadband, insurance and the mortgage) have to be paid whether the property is full or empty.
Breakeven occupancy is the number to watch
Because so many costs are fixed, serviced accommodation has a sharp tipping point. Below a certain occupancy the property loses money every month; above it, each extra night is mostly profit. The calculator solves for that breakeven occupancy directly, using your rates, fees and costs.
Compare the breakeven figure with what similar properties nearby actually achieve across the whole year, including quiet months. If the breakeven sits close to realistic occupancy, the deal has very little margin for a slow season, a price war or a rise in platform fees.
Mortgages, tax and business rates
Many buy-to-let mortgages don't allow short-term letting, so serviced accommodation usually needs a holiday-let or specialist mortgage, and lenders assess income in different ways. The calculator runs a standard stress test on gross booking income as a first screen; confirm the real criteria with a broker.
The furnished holiday lettings tax regime was abolished from April 2025, so short-let profits are now taxed much like other rental income. In England, a property available to let for at least 140 days and actually let for at least 70 days a year can be assessed for business rates instead of council tax. Rules differ in Scotland and Wales.
Planning and permissions
In London, homes can be let short-term for up to 90 nights a year without planning permission; beyond that, permission is needed. Leases, mortgage terms and some councils restrict short-term letting elsewhere too. Check all three before you rely on the numbers.