Two ways to earn from the same flat. On a twelve-month tenancy, one household pays you rent
every month. As a holiday let, forty or fifty households pay you for a few nights each. Rent is
a monthly figure times twelve. Holiday let income is a nightly rate times the nights you
actually sell. Everything else follows from that.
Work it through with our published indicative model. It is a market model, not a record of what
any property has earned. Take a two-bed flat in central Bournemouth: an indicative base of £142
a night, a central multiplier of 1.10, so about £156. Distributed across the channels and
actively priced, the model puts it at 68% occupancy, roughly 248 nights sold, or about £38,800
of booking revenue a year. The managed fee is 15%, so around £33,000 before
costs.
Now turn it around, because this is the number that decides it. To match £33,000, a tenancy on
the same flat would need roughly £2,750 a month, before any letting-agent fee and before a
single void week. Whether a two-bed on your street lets for that is a question for a local rent
appraisal, and we do not publish rent figures we cannot evidence: indicative local rents are
{{TODO: confirm with FSM}}.
That comparison flatters the holiday let, because it counts the fee and nothing else.