1-bedroom apartment in Vauxhall
This case study compares the expected annual revenue from a 1-bedroom property in Vauxhall, London when used as a short-term Airbnb-style rental versus a traditional long-term tenancy. Figures are illustrative and based on realistic London market assumptions.
Location & Market Context
Vauxhall is a high-demand Zone 1/2 location with excellent transport links and strong appeal to both business and leisure travellers. A well-presented 1-bedroom flat here is suitable for:
Business travellers needing quick access to central London
Tourists and weekend visitors
Relocating professionals and medium-term stays
Note: All figures below are indicative. Actual performance will depend on the specific flat, furnishing level, management quality, seasonality and regulatory constraints.
Short-term Airbnb vs long-term let — side-by-side
Revenue Comparison
Hosts often maintain steady income levels even in challenging economic climates, making Airbnb a reliable option for many.
Key Financial Assumptions
Short-Term Let (Airbnb-Style)
- Average daily rate (ADR): £150/night
- Annual occupancy: ~270 nights (approx. 74%)
- Estimated gross revenue: £40,500 / year
- Operating costs (cleaning, utilities, management, etc.): 35% of gross
Long-Term Let (AST Tenancy)
- Monthly rent: £1,650
- Annual rent (full occupancy): £19,800 / year
- Allow for small voids & arrears in practice
- Operating costs (agents, maintenance, insurance, etc.): 20% of gross
Short-Term vs Long-Term: Annual Net Revenue Comparison
MetricShort-Term LetLong-Term LetGross annual income£40,500£19,800Assumed operating costs35% (cleaning, utilities, linen, management, etc.)20% (management/letting fees, maintenance, insurance, voids)Estimated annual costs (£)£14,175£3,960Estimated net annual income (£)£26,325£15,840Net income uplift vs long-term letShort-term net is approx. 66% higher((£26,325 − £15,840) ÷ £15,840 ≈ 66%)Baseline
The figures above are illustrative and exclude financing costs, purchase costs and tax. They are designed to show the relative difference in operating income for the same property under two different strategies.
Key advantages
Key Advantages
- Significantly higher potential net income compared with a traditional long-term let.
- Ability to adjust nightly rates dynamically to capture peak demand and special events.
- Flexibility to use the property personally in between bookings (if desired and compliant).
- Attractive to a broad mix of guests: business travellers, tourists and relocations.
Risks & Considerations
- Higher operating costs: frequent cleaning, linen, utilities, guest support and maintenance.
- Greater wear and tear on furnishings and appliances.
- More active management required, or need for a professional management company.
- Regulatory considerations in London (permitted usage, number of nights, safety compliance).
Case study outcome
Conclusion
For a well-located 1-bedroom flat in Vauxhall, short-term letting can deliver a substantially higher net annual income than a traditional long-term tenancy, even after accounting for higher running costs. With professional management, strong compliance and quality presentation, this strategy can be an effective way to maximise returns from your London property.
If you would like a tailored projection for your specific property, please get in touch and we can prepare a bespoke revenue and cost analysis.
Inside the property
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