Investing in a short-term rental can be highly stable and profitable. It’s stable because housing has been one of the most stable asset classes. Also, when you can’t do an Airbnb anymore, you can still rent it out to a long-term tenant with a lower yield. It is highly profitable because the monthly cash flow from short-term rentals typically is double the amount of traditional rentals.

The true profit from home investing comes from capital appreciation and cash flow from your rental. Between 1850 and 2015, globally, the average home value appreciated at 5.5% annually. If your short-term rental yields 3% of your total initial investment, your investment’s annual return is 8.5% before taxes are considered.

Without further ado, let’s see what the Airbnb data say about Warwickshire.

Does Airbnb do well in Warwickshire ?

Maybe, it’s profitable to Airbnb because the average net rental yield for a one-bedroom property is 7.6%.

The national median net short-term rental yield is 7.85% in the UK. For more context, a traditional rental can typically yield 2-4% if you don’t have to pay a mortgage interest. A typical listing in Warwickshire is booked for 245 nights a year, with a median occupancy rate of 67% and an average daily rate of $110. Guests from London make up the majority of the Airbnb bookings here. In Warwickshire, A typical host income (annual revenue) was $27,749 in 2023.

Okay, you might wonder about more specific data. For example, how much can an average listing with 4 bedrooms and a pool make? Or, what is the seasonality in booking? When is the peak month? Click the below button and check out more in-depth short-term rental data for free.

See Warwickshire’s Airbnb Data