Use this free Rent to SA calculator to work out whether your R2SA deal stacks up before you sign anything. Enter your rent, nightly rate, occupancy, and costs to see monthly cashflow, annual profit, and ROI instantly.
What You'll Calculate
Four outputs, updated in real time
Net Monthly
Cashflow
Your gross SA revenue minus all fixed costs, variable costs, and platform fees. The number that tells you whether the deal works month to month.
Annual Profit
Net monthly cashflow multiplied by 12. A useful top-line figure, though real-world performance will vary with seasonal occupancy. Factor in one or two slower months when reviewing this number.
Total Capital
Required
The sum of your one-off setup costs: deposit or bond, first month's rent upfront, furniture and staging, and any sourcing or legal fees. This is the capital you need to get the deal running.
Return on Investment (ROI)
Annual profit divided by total startup capital, expressed as a percentage. A strong R2SA deal typically returns 150% or more on setup costs. Anything below 100% is worth revisiting.
What's Included
Built around how R2SA deals actually work
Covers all cost layers: fixed monthly outgoings (rent to landlord, council tax, utilities, broadband, insurance), variable costs (cleaning and linen, OTA platform fees, management fee), and one-off setup costs (deposit, first month upfront, furniture, sourcing or legal fees). This calculator is part of Property Filter's free suite of UK deal analysis tools at property-filter.co.uk/free-calculators.
First-time buyer, main residence, additional property or buy-to-let. Your buyer category directly determines your rate.
Returns ROI on startup capital, not yield on property value, matching the metric deal sourcers and R2SA educators use when presenting deals
How It WorkS
Enter your setup costs
Add your deposit or bond, the first month's rent due upfront, your furniture and staging budget, and any sourcing or legal fees. This builds your total startup capital figure, which the ROI is calculated against.
Add your revenue assumptions
Enter the average nightly rate you expect to achieve (check current Airbnb listings in the area as a benchmark) and a realistic occupancy percentage. Start with 65-70% rather than the best-case figure.
Fill in your monthly costs
Work through each cost field: the rent you pay the landlord, council tax, utilities, broadband, and insurance under fixed costs, then cleaning and linen, your OTA platform fee percentage, and management fee percentage under variable costs.
Read your results
Net monthly cashflow, annual profit, total capital in, and ROI all update in real time. Adjust occupancy and nightly rate assumptions to stress-test the deal before committing.
The three things investors get wrong when evaluating a deal
The occupancy assumption that makes deals look better than they are
Most R2SA deals are signed on occupancy assumptions of 80-90%. Most R2SA operations run at 65-75% when you average across the full year. That gap does not sound large, but on a £120 nightly rate, the difference between 85% and 70% occupancy is over £200 per month in gross revenue. A deal that looks like £600 profit at 85% occupancy can turn into £400, or break-even, at 70%.
Run the calculator at 65% first. If the deal still produces positive cashflow and acceptable ROI at that level, it has a genuine margin of safety. If it only works at 80%, you are betting on above-average performance before you have proven the location or your operation.
New R2SA operators consistently underestimate variable costs. OTA platform fees typically run at 12-15% of gross revenue for Airbnb bookings. Cleaning and linen turnaround costs add £30-60 per stay depending on property size and frequency. Consumables (toiletries, welcome items, replacement items) are a further steady drain. On a two-bed at 70% occupancy, these three line items alone can total £400-600 per month. Enter them all before trusting the cashflow number.
The setup capital calculation
Unlike a buy-to-let purchase, R2SA does not require a mortgage deposit. But startup capital is still real. Deposit or bond (typically one month's rent), first month's rent upfront, furniture and staging (typically £2,000-5,000 for a one or two-bed), and sourcing or legal fees. Most realistic deals require £4,000-8,000 in setup capital. Total that figure accurately before reviewing ROI, because ROI is only meaningful if the denominator is correct.
What good looks like in practice
A well-run two-bed R2SA in a mid-tier UK city, with £900 per month rent and an average nightly rate of £110-130 at 70% occupancy, should produce net cashflow of £500-700 per month after all costs. ROI on a realistic setup cost of £5,500-7,000 typically runs at 150-250%. Deals producing less than £300 per month net, or below 100% ROI on startup capital, should prompt scrutiny before signing a lease.
Note on legal requirements
You must have explicit written permission from the property owner to run short-term lets from their property. A standard AST (Assured Shorthold Tenancy) does not grant this permission. Confirm the landlord's mortgage terms and building lease allow subletting as serviced accommodation before entering any agreement. You will also need specialist SA landlord insurance. Standard HMO or BTL insurance does not cover short-term let operations.
The Maths Behind the Calculator Section subheader: Exactly how each number is calculated
Net Monthly Cashflow
Gross SA revenue minus all monthly costs. This is what lands in your account each month after paying every bill. Positive cashflow means the deal is self-funding.
Annual Profit
Net monthly cashflow multiplied by 12. Assumes consistent occupancy year-round. Build in a mental adjustment for one or two slower months, particularly if you are in a seasonally variable location.
Total Capital Required
Your one-off startup outlay: deposit or bond, first month's rent upfront, furniture and staging costs, plus sourcing or legal fees. This is the number ROI is measured against. Get it right.
Return on Investment (ROI)
Annual profit as a percentage of total startup capital. A figure above 150% is generally considered a strong R2SA result. Below 100% means your startup costs take more than a year to recover through profit, which warrants a closer look at your assumptions.
⚠️ Disclaimer: This calculator provides estimates based on the inputs you enter. Results assume consistent monthly occupancy throughout the year and use simplified cost calculations. Platform fees, tax rules, and local authority requirements change regularly. Always verify current figures before committing to a deal. This tool is for educational and planning purposes only and does not constitute financial, legal, or tax advice. Consult qualified professionals before making investment decisions. Property Filter is not responsible for losses arising from business decisions based on calculator outputs.
Common Questions
What is Rent to Serviced Accommodation (R2SA)?
Rent to SA is a property strategy where you rent a property from a landlord on a guaranteed-rent agreement, then sublet it on short-term let platforms such as Airbnb or Booking.com at a higher nightly rate. The difference between what you pay the landlord and what guests pay you (minus costs) is your profit. Unlike a buy-to-let, you do not need to own the property and require significantly less upfront capital.
How much profit can you realistically make from an R2SA deal?
At 70% occupancy, a well-run two-bed in a mid-tier UK city with rent of around £900 per month and a nightly rate of £110-130 should produce £500-700 per month net cashflow after all costs. Deals in higher-demand locations (city centres, tourist destinations, near hospitals or business parks) can produce more. Deals with above-market rent or high variable costs produce less. Use the calculator with real local figures rather than averages.
What occupancy rate should I use?
Start with 65-70% for a conservative estimate. This reflects realistic average performance across a full year in most UK locations, accounting for slower weeks and seasonal dips. If the deal still works at 65%, you have a cushion. If it only works at 80%+, your margin of safety is thin. Once you have 6-12 months of real performance data, revisit the calculator with your actual figures.
Do I need the landlord's permission to run R2SA?
Yes, and this is non-negotiable. A standard tenancy agreement does not permit subletting as serviced accommodation. You need explicit written permission from the landlord in your agreement. The landlord also needs to check their own mortgage terms, as many residential and buy-to-let mortgages prohibit short-term subletting. If the property is in a leasehold building, the head lease may also contain restrictions. Always verify all three before signing.
What platform fees should I enter for Airbnb?
Airbnb charges hosts a service fee of approximately 3% for most listings using the split-fee model, though this can be higher on certain listing types. The guest fee (paid by the guest) does not affect your revenue. If you use the host-only fee model (common for professional hosts), the fee runs to approximately 14-16% of the booking subtotal. Enter whichever applies to how you plan to list the property. VRBO and Booking.com fees differ and are typically in the range of 8-15%.
What are the main costs I need to include?
Fixed monthly costs: rent to landlord, council tax, utilities (gas, electricity, water), broadband and TV licence, and SA-specific landlord insurance. Variable costs: cleaning and linen per month (not per stay, for simplicity), the OTA platform fee percentage, and a management fee percentage if you use a third-party SA operator. Setup costs: deposit or bond, first month's rent, furniture and staging, and any sourcing or legal fees. All of these fields are included in the calculator.
Is R2SA better than buy-to-let?
They are different strategies for different investor profiles. R2SA requires less upfront capital, no mortgage, and no property purchase, but carries more operational risk, requires active management, and depends on consistently high occupancy. Buy-to-let requires more capital, is more passive, and provides more stable (if lower) yields. Many investors use R2SA to generate cash and build experience before progressing to direct ownership. The two strategies are not mutually exclusive.
How much startup capital do I typically need?
For a one-bed, budget for £3,000-5,000. For a two-bed, £5,000-8,000 is a more realistic range, depending on how furnished the property already is, whether a deposit is required, and what legal or sourcing fees apply. Some deals come with furniture included and no deposit, which can lower startup costs significantly. Enter your actual anticipated costs rather than guesswork.
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