2-bedroom apartment in Notting Hill
Short-term rental vs Long-term in Notting Hill
Location & Market Context
Property Overview
Location: Notting Hill, London W11
Property Type: 2-Bedroom Apartment
Sleeps: 6 Guests (2 guests sleep on a sofa bed)
Condition: Modern, professionally furnished and maintained
Many London property owners assume that long-term renting provides the highest and most predictable income. However, in premium locations such as Notting Hill, professionally managed short-term rentals can often generate significantly higher annual revenue while offering greater flexibility for owners.
This case study compares the potential financial performance of a typical 2-bedroom apartment in Notting Hill operated as either a long-term rental or a professionally managed short-term rental.
Short-term Airbnb vs long-term let — side-by-side
Option 1: Long-Term Rental Calculation
Assumptions
- Monthly rent: £4,000
- Annual gross rent at full occupancy: £48,000
- Vacancy period between tenants: 10%
- Letting agent fee: 10% + VAT = 12%
- Maintenance and compliance costs excluded
Annual Performance
Annual Gross Rent at 100% Occupancy
£48,000
Less Vacancy Period, 10%
-£4,800
Adjusted Annual Rent
£43,200
Agent Fees, 12%
-£5,184
Net Income
£38,016
Option 2: Short-Term Rental
Assumptions
- Average Daily Rate (ADR): £275
- Occupancy: 72%
- Nights booked per year: 263
- Professional Airbnb management
- Revenue optimised using dynamic pricing
Annual performance:
Average Daily Rate - £275
Occupancy - 72%
Nights Sold - 263
Gross Revenue - £72,325
Typical operating costs:
Management Fee (18%) - £13,019
Cleaning & Laundry - £7,500
Utilities & Internet - £3,000
Consumables & Maintenance - £2,000
Total Operating Costs - £25,519
Results comparison:
Long-Term Rental Gross Revenue: £43,200
Short-Term Rental Gross Revenue: £72,325
Long-Term Net income £38,016
Short-term Net income £46,806
Difference: +£8,790 (+23.1%
Key advantages
Notting Hill remains one of London’s most desirable neighbourhoods for visitors thanks to:
- Portobello Road Market
- Excellent transport links
- High-end restaurants and cafés
- Strong international tourism demand
- Proximity to Hyde Park and Kensington
- Premium nightly rates compared to many other London locations
The area attracts leisure travellers, families, business travellers and international visitors throughout the year, helping maintain strong occupancy and premium pricing.
Case study outcome
With a nightly rate of £275, the Notting Hill property still outperforms a traditional long-term tenancy, generating approximately £8,790 more net income per year, while providing the owner with greater flexibility and access to the property when required.
In addition to the financial benefit, short-term letting allows owners to take advantage of seasonal demand, major London events, and dynamic pricing opportunities that are not available through a traditional tenancy.
Inside the property
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