How much does a holiday home really earn (and how to calculate it)

"How much will I earn?" is the first question of anyone thinking of putting a home to work with short-term rentals. The answers circulating online swing between enthusiasm ("three times a long-term let!") and scepticism ("between costs and taxes there's nothing left"). The truth lies in the numbers of your specific case — and you can estimate it with a simple method.

The starting point: potential gross revenue

Gross revenue depends on three variables: average nightly rate, occupancy rate and the area's seasonality. A one-bedroom flat by the sea in a popular spot can make the bulk of its takings in 14-16 weeks; a flat in an art city works all year with lower rates but more stable occupancy.

• Look at the real prices of 5-6 listings similar to yours in the same area (same rooms, same distance from the centre or the sea)
• Estimate occupancy conservatively: 50-60% a year is already a good result for well-run management
• Annual gross revenue ≈ average rate × nights occupied. E.g.: €95 × 180 nights = €17,100

The costs nobody puts in the calculation

This is where bar-stool estimates collapse. Beyond platform commissions (generally 14-18% if borne by the host on Airbnb, or 15-18% on Booking), you need to factor in cleaning and linen at every changeover, utilities and connectivity, routine maintenance, consumables, any income tax on the rental (which varies by country), local property taxes where due, and insurance.

If you delegate management to a property manager, add their commission — typically between 15% and 25% of revenue. In return you free yourself from listings, dynamic pricing, guest communication, check-in, cleaning coordination and mishaps: for many non-resident owners it's the difference between an investment and a second job.

An honest, all-in example

One-bedroom flat in a seaside spot, €17,000 gross revenue a year. Platform commissions ~€2,600, cleaning and linen ~€1,800, utilities and sundries ~€1,500, property manager at 20% ~€3,400. Margin before taxes: ~€7,700. Net of local taxes — which vary by country — you're left with a figure worth more than double a long-term let in the same area, but with real numbers, not brochure ones.

How to raise the yield (no magic)

• Dynamic pricing: adjusting rates to events and seasonality is often worth +10-20% of revenue
• Reviews: every extra tenth of a point translates into visibility and bookings
• Filling the dead periods: mid-length stays, weekly discounts, managing long weekends
• A competent local property manager usually pays back their own commission through the three points above

The next step

If the numbers add up, the deciding factor becomes WHO manages. On Keyo you post your request for free for your home and receive proposals from property managers and operators in your area: you see real reviews imported from Airbnb and Booking, declared services and commissions, and you compare before choosing. Posting is free and with no commitment.