1. First decision: are you building a hobby or a business?

Before you think about décor or nightly rates, get clear on what you’re actually building:

• A spare room or annexe in your own home
• One or two investment flats in a single city
• A small portfolio spread across several locations
• A full Operating Partner–style business, where you manage homes on behalf of other owners

The more properties and cities you add, the more your focus moves from “hosting” to running a regulated hospitality business: systems, staff, compliance and cash flow.

Write down:

• How much time you realistically have each week
• How much capital you’re willing to invest
• Whether you want this as side-income or to replace part of your salary

This will shape the locations you choose, the structure you use (personal vs company) and whether you self-manage or work with a specialist partner.

Real story: Alex in North London – from risky rent-to-rent to a 25-property portfolio

Alex, a North London host and Houst partner, who first tried the classic rent-to-rent model. He took on a property in his own name, covered the rent and bills, and tried to make a margin on short-stay bookings – but all the risk sat on him.

After a while he wanted a way to stay in short-lets without taking on so much financial risk. That’s when he found the Houst partnership programme...

In his words:

“I took my first property on in January. We’re now in July. I’m managing 25 properties. I wouldn’t have been able to do that without the guys at Houst.”

▶️ Watch Alex’s story

Thinking seriously about starting an Airbnb management business rather than going it alone as a host?

2. Understand where you can host – and for how long

The UK has no single, nationwide set of Airbnb rules. Instead, you need to layer three things:

1. UK-wide law (planning, safety, tax).
2. Nation-level rules (Scotland, Wales, England, Northern Ireland).
3. Local authority policies (for example, London boroughs or Scottish councils).

2.1 England and the London 90-night rule

In Greater London there is an extra constraint: the 90-night limit for “entire home” listings in Greater London. Above 90 nights in a calendar year, you usually need planning consent for change of use from a normal residential home to short-term visitor accommodation.

Outside London, councils may still treat heavy short-term letting as a material change of use, particularly in flats or sensitive areas, and can use Article 4 directions to remove permitted development rights.

On top of that, the UK Government has consulted on a new use class for short-term lets and a national registration scheme in England, so you should expect rules to keep evolving.

2.2 Scotland: mandatory short-term let licensing

In Scotland, most hosts now require a licence before taking bookings. Councils operate the scheme, but the legal framework comes from national regulations. The Scottish Government guidance for short-term let hosts and operators sets out which types of accommodation need a licence, safety standards (fire, gas, electrical) and application deadlines.

If you plan to run an Airbnb business in Edinburgh, Glasgow or the Highlands, licensing and control zones are not optional “nice-to-knows” – they are the foundation of your business plan.

2.3 Wales and Northern Ireland

Wales and Northern Ireland also have their own planning frameworks, and Wales is moving towards tighter control in some high-pressure tourist areas. Always:

• Check your council website for “short-term let”, “holiday let” or “visitor accommodation” guidance.
• Read your lease, mortgage and insurance policies; many require consent before you sub-let or run short-term lets. Professional advisers such as BDO UK highlight that moving into furnished holiday lets can change how lenders and HMRC treat your property, so always check the small print or get advice before you switch model.

If you get this wrong, it doesn’t just risk a warning letter – it can affect mortgage terms, insurance cover and resale value.

Not sure how local rules, licensing and planning affect your business idea?

3. Choose the right structure and understand the tax basics

Short-term letting income is taxable. How it is taxed depends on:

• Whether you host as an individual or through a company
• Whether you let out your own home, a second home or multiple investment properties
• How many services you provide (cleaning, linen, breakfast, concierge, etc.)
• Your total UK income from all sources

From April 2025 the Government has abolished the old Furnished Holiday Let rules, so most UK short-term lets will be taxed under the standard property income rules rather than a special regime.

Common scenarios to discuss with your accountant:

• Single spare room in your main home. You may be able to use the Rent a Room scheme or equivalent reliefs, which can give you a tax-free allowance up to a set threshold if you qualify.
• One or two investment properties in your own name. Income usually sits in your self-assessment tax return alongside other property income.
• Multiple properties with services similar to a small hotel. In some cases, income may be closer to trading income. That can affect how expenses, losses and National Insurance are treated, and whether a company structure is worth it.

Ask your adviser:

1. Should I hold these properties personally or in a company?
2. How will mortgage interest and other costs be treated from 2025 onwards?
3. What records do I need to keep to support my position if HMRC asks questions?

Get this clear before you sign leases, buy properties or promise guaranteed returns.

Already clear this is the path you want to take?

4. Run the numbers like a business

A lot of “how much can I make?” content only focuses on top-line revenue. A serious Airbnb business plan goes further.

4.1 Revenue: ADR and occupancy

Estimate:

• Average daily rate (ADR) for your target property type and area.
• Expected occupancy by season (not just an annual average).

Look at realistic comparables, not just the single best-looking listing in your postcode.

4.2 Costs and margins

Build a simple model that includes:

• Cleaning and laundry
• Platform fees
• Utilities, internet and council tax / business rates
• Maintenance and replacements
• Licensing or registration fees, and professional safety checks
• Management or Operating Partner fees (if you do not self-manage)
• Allowance for vacancies and last-minute discounts

Once you have this, stress-test your plan:

• What if occupancy is 10–15% lower than your base case?
• What if ADR is £15–20 per night lower?
• How many units do you need for the business to cover your own time and overheads?

You are looking for sustainable net income, not just exciting revenue screenshots.

Want to sanity-check your numbers? Use our Airbnb income calculator to estimate earnings for different locations and occupancy scenarios.

5. Decide how you will actually run the operation

An Airbnb “business” is really a bundle of operations:

• Pricing, calendar and listing optimisation
• Guest communication and screening
• Cleaning, laundry and supplies
• Maintenance and safety checks
• Book-keeping and reporting

You have three broad options.

5.1 DIY host

You do everything yourself. This can work for:

• A single property close to where you live
• Hosts who enjoy the day-to-day contact with guests
• People who treat it as a lifestyle choice rather than a scalable business

The downside is time: late-night messages, emergency call-outs and constant monitoring.

5.2 Traditional management company

You pay a percentage of booking revenue for a local company to handle most day-to-day tasks. This suits:

• Owners who want a relatively passive set-up
• People who are comfortable with a long-term management agreement
• Investors who only hold a few properties in one region

You still need to understand what is actually included in the fee: pricing, photography, listings on multiple platforms, owner reporting, and how they handle guest issues.

5.3 Operating Partner model

If you want to build a real portfolio without running a 24/7 operations team yourself, an Operating Partner model can be a better fit.

In this model you:

• Focus on sourcing properties and building relationships with owners.
• Use a specialist partner like Houst for the heavy lifting: guest vetting, pricing, operations and compliance.
• Share revenue rather than hiring and managing a full in-house team on day one.

It is a way to build an Airbnb business with scale and local expertise, without becoming a full-time cleaner, handyman and receptionist.

Need a fuller picture of what day-to-day hosting actually involves? Read “Unlocking Airbnb’s Potential: The Ultimate Guide for Owners and Hosts.”

6. Get the safety and compliance basics right

Regardless of structure, you are responsible for providing safe, legal accommodation.

At minimum, plan for:

• Up-to-date gas and electrical safety checks where required
• Smoke and carbon monoxide alarms that meet current standards
• A documented fire-safety assessment, especially in flats or complex buildings
• Clear house rules and guest information (evacuation routes, contacts, restrictions)
• Public liability cover that explicitly permits short-term letting

In Scotland, many of these requirements are baked into the licensing conditions; in England, Wales and Northern Ireland they may sit across different regulations and guidance, but they are just as important.

If a prospective management company tells you not to worry about licensing, planning or safety checks, that is a red flag, not a perk.

Before you launch, make sure you’re covered on licences, safety checks and guest rules with “Before You List: The Legal Essentials for UK Airbnb Hosts.”

7. Launch plan: from empty calendar to first reviews

Once the groundwork is done, you can finally think about your listing.

1. Positioning and photos
   • Decide who you’re really targeting (contractors, families, city-break couples, digital nomads).
   • Invest in proper photography; it will pay for itself quickly.
2. Listing copy and rules
   • Write honest descriptions that set expectations clearly.
   • Spell out house rules around parties, smoking and visitors.
3. Smart pricing and minimum stays
   • Use a dynamic pricing tool or a management partner with strong revenue management.
   • Set minimum stays that make sense for your market and goals (for example, longer stays to reduce turn-rounds in winter).
4. First guests and reviews
   • Be extra responsive to your first ten bookings.
   • Walk the property yourself between guests or ask for detailed photo reports.
   • Fix small issues quickly before they snowball into negative reviews.

Remember: in most markets, consistent four and five-star reviews and low cancellation rates will help your listing more than any single “growth hack”.

8. Bringing it together

Starting an Airbnb business in the UK in 2025 is not just about finding a nice flat and putting it on a platform. You are stepping into a regulated, fast-moving hospitality sector with:

• Location-specific rules (especially London and Scotland)
• Changing tax treatment and reporting requirements
• Real operational complexity once you move beyond a single home

If you treat it like a serious business from day one – understanding the rules, choosing the right structure, running the numbers and deciding how you’ll operate – you put yourself in a much better position to succeed.

And if you would rather focus on finding great properties and owners while a specialist team handles the rest, an Operating Partner model with a company like Houst can be the bridge between “thinking about it” and running a resilient, scalable short-let business.