Is serviced accommodation profitable in 2026?

It can be, but it depends on occupancy and nightly rate. As a rule of thumb SA needs roughly 60–70% occupancy at a healthy nightly rate to beat a standard buy-to-let, because cleaning, management and void nights eat into the gross. Model your own numbers above to see the breakeven.

What occupancy do I need to break even?

Breakeven occupancy is the point where nightly income covers rent/mortgage, bills, cleaning and management. Drop the occupancy slider until monthly profit hits zero — that figure is your margin of safety.

What is rent-to-SA (R2SA)?

Rent-to-SA means you lease a property from a landlord on an agreed monthly rent, furnish it, and let it as short-stay accommodation. You keep the difference between nightly income and your fixed costs — no purchase, but you carry the void risk.

Is serviced accommodation profitable in 2026?

It can be, but it depends on occupancy and nightly rate. As a rule of thumb SA needs roughly 60–70% occupancy at a healthy nightly rate to beat a standard buy-to-let, because cleaning, management and void nights eat into the gross. Model your own numbers above to see the breakeven.

What occupancy do I need to break even?

Breakeven occupancy is the point where nightly income covers rent/mortgage, bills, cleaning and management. Drop the occupancy slider until monthly profit hits zero — that figure is your margin of safety.

What is rent-to-SA (R2SA)?

Rent-to-SA means you lease a property from a landlord on an agreed monthly rent, furnish it, and let it as short-stay accommodation. You keep the difference between nightly income and your fixed costs — no purchase, but you carry the void risk.

Serviced Accommodation Calculator

Model an SA deal end to end — nightly rate, occupancy, cleaning, management and bills — and get monthly profit, cash-on-cash return and a DealIQ verdict. Works for rent-to-SA or an owned unit.

Strategy

Market value

Monthly rent (total)

Sourcing fee

Refurb / furniture

Bills (pcm)

Rent to landlord (pcm)

Setup capital

Nightly rate

Occupancy %

Deposit %

LTV %

Rate %

Management %

Voids/maint. %

Additional property (5% SDLT surcharge)Tax region

Stress test

If things move against you

The same cashflow maths, re-run at a higher rate, lower rent and a void month — pure arithmetic, no forecast.

Scenario	Cashflow / mo	ROI
Today	£278	25.6%
Rate +1%	£278	25.6%
Rent −5%	£199	18.3%
1-month void	£146	13.5%

Self-managed cashflow on the figures you entered. Other running costs are held fixed in each scenario, so these are conservative — a guide, not a forecast.

Full breakdown

ROI (self)

25.6%

ROI (managed)

8.2%

Cashflow (self, pcm)

£278

All-in capital

£13,000

Serviced-accommodation income assumes 70% occupancy at £75/night. Individual BTL landlords: mortgage interest relief is restricted (Section 24) — check your own tax position. Informational only — not financial advice.

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This calculator is for guidance only and does not constitute financial, tax, mortgage or investment advice. Figures are estimates — always seek professional advice and verify costs before committing to a purchase.

Serviced accommodation — common questions

Is serviced accommodation profitable in 2026?: It can be, but it depends on occupancy and nightly rate. As a rule of thumb SA needs roughly 60–70% occupancy at a healthy nightly rate to beat a standard buy-to-let, because cleaning, management and void nights eat into the gross. Model your own numbers above to see the breakeven.
What occupancy do I need to break even?: Breakeven occupancy is the point where nightly income covers rent/mortgage, bills, cleaning and management. Drop the occupancy slider until monthly profit hits zero — that figure is your margin of safety.
What is rent-to-SA (R2SA)?: Rent-to-SA means you lease a property from a landlord on an agreed monthly rent, furnish it, and let it as short-stay accommodation. You keep the difference between nightly income and your fixed costs — no purchase, but you carry the void risk.

Serviced Accommodation Calculator

If things move against you

Serviced accommodation — common questions

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