Rent-to-rent (R2R) and serviced accommodation (SA) are control-not-own UK property strategies — you pay a head rent (or own the property), then sub-let on shorter terms or via platforms like Airbnb for a margin. The economics are very different from buy-to-let: high turnover, platform fees, cleaning, capex amortisation, and the £90,000 VAT threshold trap that catches operators who scale past a single property. The Furnished Holiday Lettings (FHL) tax regime was abolished on 6 April 2025, removing the favourable tax treatment SA used to enjoy.
Rent-to-Rent / Serviced Accommodation
Control-don't-own economics: head-rent or nightly rate, occupancy, cleaning, platform fees, and the VAT-threshold tripwire most spreadsheets miss.
Furnished Holiday Letting regime abolished 6 April 2025
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Monthly economics
Revenue (after VAT)
£2,520
Costs
£1,345
Net monthly cash
£1,175
Annualised return on capex
235.1%
Net cash by occupancy
The break-even occupancy is where the curve crosses zero.
Monthly cost stack
Where the revenue goes before you see anything.
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Related guides
Plain-English explainers for the rules behind this calculator.
Frequently asked questions
Answers to the questions UK property investors most often have about this tool and the underlying rules.
- What changed in April 2025 for serviced accommodation?
- The Furnished Holiday Lettings (FHL) tax regime was abolished. SA operators now follow standard residential rental rules: mortgage interest restricted under Section 24 (20% credit), no capital allowances on furniture (only the s311A replacement-of-domestic-items relief), no BADR or rollover relief on disposal, profits no longer "relevant earnings" for pension contributions.
- When does the £90,000 VAT threshold apply?
- Once your taxable turnover (annualised) exceeds £90,000, you must register for VAT and charge 20% on guest stays. For serviced accommodation, this often happens with just 1-2 properties in expensive areas — a £250/night unit at 60% occupancy grosses ~£54k/year per property. The calculator warns when projected revenue crosses the threshold.
- Is R2R legal in the UK?
- Yes, with the head landlord's written permission. Most standard ASTs prohibit sub-letting, so you need a commercial lease or a specific R2R agreement. Operating without permission breaches the head tenancy and can lead to eviction and damages.