Serviced accommodation for sale: buying short-let income
Short-let property is sold on gross booking revenue and bought on net profit. The gap between the two — cleaning, platform fees, utilities, voids and management — is where most purchases go wrong.
Serviced accommodation is valued either as a residential asset with an income overlay or, for larger operations, on trading profit. Verify occupancy and average daily rate from platform statements and bank receipts rather than a spreadsheet, and confirm the planning position: several councils, London included, restrict short-letting, and a use that is unlawful is not an income stream you can rely on.
What the market looks like
Gross is not net
Cleaning, linen, utilities, platform commission and management routinely take a third or more of revenue.
Planning risk is local
London's 90-night rule and local short-let licensing schemes change what is lettable.
Seasonality is severe
Annualising a peak month is the most common overstatement in these sales.
Finance is specialist
Standard buy-to-let terms usually prohibit short-letting; you need holiday-let or commercial finance.
What to check before you offer
Verified trading history
Platform payout statements and bank credits across at least 24 months.
Planning and licensing
Whether the short-let use is lawful in this council and any registration required.
Cost stack
Every operating cost, including the owner's own unpaid time if they self-manage.
Reviews and ranking
Listings transfer badly; the ranking you buy may not survive the ownership change.
Fallback use
What the property earns as an ordinary let if short-letting stops.
How this stock actually reaches buyers
Operators sell when regulation tightens, when finance resets, or when they consolidate around fewer units. Those sales are usually private because bookings and staff are easier to protect that way.
Tell us what you're looking for
Five answers and an email. We come back the same working day with an honest read on whether we see stock that fits — including when we don’t.
Serviced Accommodation For Sale: common questions
Is serviced accommodation still profitable in the UK?
In genuine demand locations with a lawful planning position, yes — but on net profit after the full cost stack, not on gross booking revenue. Many listings that look strong on gross do not beat an ordinary let once costs are paid.
Do you need planning permission for serviced accommodation?
It depends on the council and the intensity of use. London has a 90-night limit on short-letting a residence without permission, and other areas are introducing registration or licensing schemes.
What finance do you need to buy a short-let property?
Holiday-let or commercial finance rather than standard buy-to-let, since most buy-to-let terms forbid short-term letting.