Rent-to-rent calculator
Lease a property from a landlord, then sublet it by the night or by the room. See whether the revenue covers the rent with room to spare, how quickly the set-up pays back, and what changes if occupancy or rates slip.
Results
Revenue
£2,585/mo
£31,025 a year from bookings.
Net profit
£324/mo
£3,894 a year after the landlord’s rent and every running cost.
Landlord rent cover
2.46×
Revenue as a multiple of the rent you pay.
Profit margin
13%
Share of revenue you keep.
Break-even occupancy
56%
Book at least 204 nights a year to cover costs.
Payback on set-up
20 months
Inside a 60-month lease? Yes.
Profit over the lease
£12,968
Over 60 months after the £6,500 set-up. You need £8,760 to start.
Against a standard let
+£1,535/mo
Let on a standard tenancy at the landlord’s rent, the property earns £1,050 a month. Your bookings earn this much more, and you keep £324 of it.
Revenue by month
Amber months don’t cover the rent
Sensitivity: monthly profit
| Occupancy \ Nightly rate | −10% | As entered | +10% |
|---|---|---|---|
| −10 points | -£131 | £56 | £243 |
| As entered | £105 | £324 | £544 |
| +10 points | £341 | £593 | £845 |
Compliance checklist
0 of 8 checked
Plain-English notes, not legal advice. Tick each one off as you confirm it for this property.
Get the landlord's written consent to sublet, in a lease that allows it. Most rent-to-rent deals use a company let (a contract with your company rather than an assured shorthold tenancy) or a commercial lease. An AST in your own name usually forbids subletting. For a flat, the head lease must allow short lets or HMO use too.
Many buy-to-let mortgages forbid short lets, company lets or HMO use. The landlord needs their lender's consent, or a mortgage that allows your use, before you sign.
In London, letting a home for short stays for more than 90 nights in a calendar year needs planning permission. Elsewhere, councils can treat intensive short letting as a change of use, and some areas have Article 4 directions. Ask the council before you commit.
Mayor of London: short-term and holiday lets (opens in a new tab)Every short-term let in Scotland needs a licence from the council before taking guests, and control areas such as Edinburgh may also need planning permission.
Scottish Government: short-term lets (opens in a new tab)The government is introducing a national register for short-term lets in England. At the time of writing it is not yet in force and the start date has moved more than once. Plan for registration and check current rules before you list.
Paying-guest accommodation and HMOs fall under fire safety law. You need a written fire risk assessment, working alarms, a safe escape route and fire doors where the layout needs them.
GOV.UK: small paying guest accommodation (opens in a new tab)Standard landlord insurance rarely covers paying guests or a sublet. You need cover for your business (contents, public liability, loss of income) and the landlord's buildings insurer must know how the property is used.
A short let in England is assessed for business rates instead of council tax when it is available for at least 140 nights a year and actually let for at least 70. Wales uses 252 and 182 nights, Scotland 140 and 70. Small business rates relief may then apply. Thresholds change, so check current rules with the Valuation Office Agency or your council.
GOV.UK: business rates for self-catering (opens in a new tab)
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