Serviced Accommodation ROI Calculator

Serviced accommodation (SA) means short-stay rentals via platforms like Airbnb or Booking.com — higher nightly rates than long-term rental but more management intensive and variable. Typical city SA: 60-75% occupancy, 80-200/night. Annual gross tends to exceed equivalent long-term rental income, but expenses are higher (cleaning, management typically 15-25%, voids, supplies).

300k property, 75k deposit. 100/night × 60% × 30 = 1,800/month gross. − 20% management 360 − 400 fixed costs = 1,040 net. Annual 12,480. Cash-on-cash on 75k deposit: 16.64%. Returns above long-term rental are common, but reflect higher costs, more active management, and regulatory risk.

SA regulations are tightening in many markets. Some regions cap short-let nights per year, add licensing schemes, or require additional planning permissions in tourist hotspots. Local-authority scrutiny varies by area. Rate of return differences versus long-term rental reflect: higher management, higher maintenance, regulatory uncertainty, and void risk. Active operators with multiple properties often run dedicated SA companies; others may prefer long-term rental simplicity.

Example scenario

With property price 300,000, deposit 75,000, nightly rate 100, and occupancy 60%, the calculator returns 16.64%. Your live defaults may differ — adjust them to your scenario.

The levers in this calculation

The inputs — Deposit, Nightly Rate, Occupancy %, Management %, and Monthly Fixed Costs — do not pull with equal force. Property Price is collected for context but does not enter the ROI formula. Adjusting one input at a time toward extreme values shows which ones move the result most.

How the math works

Monthly rev = nightly × occupancy × 30. Management cost = revenue × mgmt %. Net = revenue − mgmt − fixed. ROI = annual net ÷ deposit × 100.

Where this fits in planning

This is a scenario calculator, not a forecast. Use it to test sensitivities before committing: what happens if the rate is 2% lower than expected, what happens if you extend the holding period. The value is in the scenarios you run, not the single answer from the defaults.

What this doesn't capture

This is a simplified model that holds its assumptions constant. Real outcomes vary with market conditions, costs, taxes, and timing, so the figure is best read as one scenario rather than a forecast.