Is Your London Property Sitting Idle? Here's What Short-Letting It Could Actually Earn You

Most London landlords are leaving money on the table. Here's an honest look at what short-letting your flat could actually earn and how it compares to your current setup.

The number that usually starts the conversation is surprisingly simple. A well-managed 1-bedroom flat in South or East London, on a conventional assured shorthold tenancy, typically earns between £1,300 and £1,600 a month. The same flat on a well-run short-let, in a comparable area, can earn between £1,800 and £2,800 a month, and in some cases more during peak periods. That gap exists, it's real, and most landlords we speak to had no idea it was that wide.

WHY THE INCOME GAP EXISTS
Short-let pricing is dynamic. It responds to demand, events, seasons, weekdays vs weekends, supply in the area. A professional management company doesn't set a flat rate and leave it. Rates are adjusted regularly, and the result is a consistently higher average nightly rate than most landlords expect.

There's also the guest mix to consider. Business travellers, contractors and corporate bookers are increasingly the dominant segment in South and East London. These aren't Airbnb tourists hunting for the cheapest option, they're professionals who need a reliable base for a project, and they tend to stay longer, pay more, and leave the property in good condition.

WHAT REALISTIC NUMBERS LOOK LIKE BY AREA

New Cross / Dalton (1-bed): £80–120/night average, 75–85% occupancy
Greenwich (1-bed): £90–130/night average, 78–88% occupancy
Brixton (1-bed): £85–125/night average, 76–86% occupancy
Stratford (2-bed): £110–160/night average, 72–82% occupancy
Palmers Green (2-bed): £100–145/night average, 70–80% occupancy
Peckham (2-bed): £105–155/night average, 74–84% occupancy
Walworth / Elephant (Studio): £65–95/night average, 75–83% occupancy

These are conservative working ranges based on comparable managed properties in these areas. Actual performance depends on property condition, listing quality, and how well the pricing strategy is managed.

WHAT ABOUT COSTS?
A professional management company typically charges 15–25% of revenue. There are also cleaning costs between stays, and a small maintenance allocation. Even after these, the net income for most properties is meaningfully higher than a flat-rate AST, with the added benefit that you're not locked into a single tenant for 12 months.

THE VOID PERIOD QUESTION
One of the most common concerns is what happens if the property sits empty. This is a legitimate question, and the honest answer is that professionally managed properties in London's key areas see average occupancy rates of 75–85%. A void period exists in any rental model, but with short-letting, you're not paying a month's rent to carry an empty flat while waiting for the right tenant.

If your London property is on a fixed tenancy and you've been wondering whether there's a better return to be had, there probably is. Statera Estates manages properties across South and East London, and we offer a free, no-obligation income estimate based on your specific flat, location and current condition. Get in touch and we'll turn that around for you within 48 hours.