How much more can I earn on Airbnb than a normal rental?

Where does the extra income come from?

A long let charges one monthly rent. A short let charges per night, and nightly rates add up to more than a month's rent when the calendar is well filled. That's the whole idea. The skill is keeping the calendar busy at the right price.

At Renzo, landlords typically earn 30% to 40% more than a buy to let, without extra work. Across more than 50 properties, we average 80% occupancy.

What drives the difference?

• Location and demand: hospitals, business parks, universities and transport links bring steady guests
• Pricing: rates that change nightly with demand, events and seasons
• Who you target: longer bookings from contractors and relocating families keep occupancy steady
• Presentation: good photos, a clean property and strong reviews
• Size and parking: two and three bed homes with parking suit contractor teams

We explain the guest side in who actually stays in a managed Airbnb.

What costs should I factor in?

A simple way to think about it: a long let is a salary, a short let is closer to running a small business. The business can earn more, but it has more costs and some months are busier than others.

Short lets cost more to run than a long let, so always compare what you keep, not the headline figure. Expect cleaning and linen between stays, utilities and wifi, council tax or business rates depending on the setup, specialist insurance, and the management fee. Renzo's is 14% plus VAT on booking revenue. There's also the upfront cost of furnishing if the property is empty.

Speak to a tax adviser about how short let income is treated for you. We can introduce one through our wider support team.

Is the income steady?

It moves month to month. Some months will be brilliant, others quieter. If you need exactly the same amount every month, a long let might suit you better, and I'd rather you knew that now. Our Airbnb vs buy to let comparison covers the trade offs honestly.

Why do some landlords earn less than expected?

Usually it's one of three things: the wrong area, poor pricing, or a property that isn't presented well. Running it yourself and getting the pricing wrong is the most common. You either sit empty or leave money on the table. That's a big part of why management exists. See how to earn Airbnb returns without managing it.

How do I find out what my property could earn?

Ask Renzo for a free income projection. We use local comparables, so it's based on similar properties nearby, not a guess. You'll see it before you commit to anything. And if you'd rather test the idea first, start with one property, like one of our landlords, John, did.