New data from Hostaway reveals that some UK landlords could earn up to £100,000 a year by letting their homes on Airbnb — but that figure comes with major caveats.
Not every property is suitable for short-term letting, and even those that are require strategic management to get anywhere near those figures.
At a high level, the strongest performers are those that actively manage pricing, maintain consistently high review scores and optimise occupancy across multiple booking channels.
With house sales slowing and the UK House Price Index even dropping year-over-year in London, many homeowners are rethinking whether to sell their properties or let them out instead. And with section 21 ‘no fault’ evictions being phased out, some landlords are eyeing up short-term lets as a more flexible option.
But a dingy flat in Zone Five where the owner takes two days to reply to guest messages simply won’t cut it. The biggest mindset shift is recognising that short-term lets operate far more like a hospitality business than a tenancy — guest experience and operational reliability are the real revenue drivers.
Understanding obligations
While revenues can be tempting, short-term letting isn’t a loophole.
It comes with real legal and operational responsibilities, and landlords have to stay up to speed on the ever-changing tax and regulatory situation.
Councils across the country are tightening rules around licensing, planning permission, and second home council tax, and the government seems set on giving them even greater powers.
Hosts need to be up to date not only on tax and financial matters, but fire safety standards, occupancy limits and data privacy. Increasingly, councils link compliance directly to a host’s ability to operate, and breaches can result in listings being suspended on platforms — an immediate loss of income.
Joining an association like the Professional Association of Self-Caterers (PASC) or the Association of Scottish Self-Caterers (ASSC) is one way to get expert advice and connect with other landlords in the same situation. And with regulations constantly changing, these associations also play a key role in lobbying for fair, proportionate regulations.
Use technology like a professional
In typical long-term letting, software is largely reserved for the big operators. However, short-term letting involves far more moving parts: guest messaging, pricing updates, turnovers, photography, marketing and ongoing maintenance.
Software for the sector covers a lot of bases.
The most common tool is a Property Management System (PMS), which acts as a central hub for short-term rental operations. This might be connected to a Channel Manager, synchronising listings across different booking platforms like Airbnb and Booking.com, and other management tools like housekeeping management software. In recent years, there’s been a boom in other software, from AI guest messaging to dynamic pricing, as well as hardware like smart locks and smart thermometers.
But technology only adds value when it’s implemented with intention. New hosts shouldn’t rush into buying everything at once. They should start slow by identifying the biggest operational bottlenecks, then implement tech that solves those problems.
If it’s updating calendars every time a booking comes in to avoid double bookings, then a channel manager is the solution. If it’s answering common guest questions, AI can easily be trained to respond to FAQs.
Cater to what guests actually want
A property might be in a desirable postcode, but that’s not enough to guarantee bookings.
Guests aren’t just looking for a bed or a washing machine (though they help), they’re looking for hospitality. And that means investing in quality photos, comfortable furniture and the details that make their stay seamless, like an easy check-in and fast wifi. Bear in mind that different price points require different service — flat-pack furniture and a lockbox might work for budget properties, but they won’t cut it for luxury guests.
Platforms like Airbnb reward listings with fast replies, accurate information and high guest satisfaction, so operational discipline is directly tied to search visibility.
Landlords should start by scoping out the competition. Just a quick search on Airbnb (without putting dates in, as the best ones might be booked) should be enough to understand how many bedrooms, what locations, and what style of property performs best in the area.
When creating a listing, landlords should take notes on what seems to be working well for others. Taking good photos, styling the property to help guests imagine themselves there and setting rates based on nearest competitors is the bare minimum to compete with established players who already have hundreds of five-star reviews.
However, remember that hospitality doesn’t end at the booking confirmation. Slow replies, missing amenities and overpromising can lower review scores and listings can plummet in the search rankings.
The properties that perform best are those that consistently deliver a great experience. I’ve stayed in amazing-looking apartments where the owner did nothing about smelly broken appliances, as well as more humble properties where the communication and attention to detail was so great I’ve taken my family back multiple times. Service truly is more important than style.
Unlike in long-term letting, a good host can often turn into a professional property manager. Those who do a good job start to hear “Would you consider managing my property too?” from neighbours and friends, and with the right operations and technology in place — as well as a clear head for hospitality — scaling makes sense.
Switching to short-term lets can be rewarding, both professionally and personally, but only with the right foundation.
Success can only come from running your property like a business, with the right technology and compliance in place, and delivering an experience guests will rave about.
With a professional mindset and the right tools, today’s landlords can become tomorrow’s hospitality entrepreneurs.
Chris Henly is Director of Sales EMEA for Hostaway
