Airbnb vs long let: which earns more in 2026?
Short lets almost always win on gross revenue and often win on net — but not always, and not by the margin most comparison articles claim.
Below is the same two-bedroom property modelled both ways using current portfolio numbers, including the costs that get left out of most calculations.
The same property, both models
Take a two-bed flat in a strong regional city centre. On a standard AST it lets for £1,250 per month, or £15,000 a year gross, with roughly two weeks of void between tenancies and a letting fee on renewal.
Run as a managed short let at a £115 average nightly rate and 72% occupancy, the same flat grosses about £30,200 a year — roughly double.
Gross is where most articles stop. The interesting number is what is left.
Running costs that only short lets carry
Short lets pay utilities, broadband, council tax or business rates, cleaning and linen, consumables, platform commission and management. On the example above that is typically £9,000 to £11,500 a year combined.
Net to owner therefore lands around £19,000 to £21,000 versus roughly £13,700 net on the AST after voids, agency fees and landlord-paid maintenance.
The practical conclusion: expect 30% to 55% more net income from a well-run short let, not the 2x that gross revenue implies.
Risk, effort and tax
An AST gives one predictable payment and low operational load, but concentrates risk in one tenant — arrears or a Section 21 process can cost months of income. Short lets spread income across dozens of guests but move with seasonality and local events.
Furnished holiday lettings tax advantages have been withdrawn, so short lets are now taxed broadly like other property businesses. Model your own position with an accountant rather than assuming an advantage.
If you want short-let-level income without the variability, a corporate lease or Guaranteed Rent agreement pays a fixed monthly amount and moves void and guest risk to the operator.
Frequently asked
Is Airbnb more profitable than renting long term in the UK?
Typically yes on a like-for-like property — around 30% to 55% more net income once cleaning, utilities, commission and management are deducted. The gap is widest in city centres and tourist areas and narrowest in low-demand suburbs.
What are the real costs of running an Airbnb?
Platform commission, cleaning and linen, utilities and broadband, council tax or business rates, consumables, maintenance and management. Budget 30% to 40% of gross revenue.
Which model is safer for a landlord?
Short lets diversify tenant risk but carry demand risk. A Guaranteed Rent or corporate lease agreement removes both, at a lower ceiling than a peak-performing short let.
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