Quick answer: Yes, short-letting can be profitable in Bath, but not automatically. Across the city, the average short let earned £38,479 in gross booking revenue over the 12 months to September 2026, at an average nightly rate of £200.79 and average occupancy of 60%. What you actually keep depends on your property's size and location, your running costs and how well it's managed. This guide shows the numbers, the costs and the rules so you can judge it for your own property.
Written by Chris Hardwicke, owner of Pass the Keys Bath, who has spent more than 20 years in hospitality.
Bath short-let earnings at a glance (2026)
Average gross annual revenue: £38,479, up 4.8% on the previous year
Average nightly rate: £200.79, up 6.2% on the previous year
Average occupancy: 60%, ranging from around 40% in January to 73% in July
Revenue per available night: about £120 (nightly rate multiplied by occupancy)
Busiest month: July. Quietest month: January
Source: Airdna short-let market data for Bath, October 2025 to September 2026, covering 1,367 active listings. These are market averages, not a guarantee for any individual property.
Why Bath works for short lets
Bath's World Heritage status, Roman Baths, Abbey and Georgian crescents bring visitors all year, but the real strength of the market is that demand doesn't rely on one type of guest. Bookings come from:
Weekend city breaks, particularly from London and the South East
International visitors touring the wider South West
Spa and wellness trips to Thermae Bath Spa
Events, including the Bath Christmas Market, festivals and Bath Rugby home games
Weddings and family occasions
University visits, open days and graduations
Business and project stays linked to Bath and nearby Bristol
Because the city centre is historic and tightly protected, there is limited room for new hotels or purpose-built accommodation close to the main sights. That keeps well-located homes in demand. It also means competition between existing short lets is real, so presentation, pricing and reviews matter.
How much can a short let earn in Bath?
Size makes the biggest difference to gross revenue. Average gross annual revenue in Bath over the last 12 months was:
1 bedroom: £26,593
2 bedrooms: £37,564
3 bedrooms: £43,732
4 bedrooms: £57,271
5 bedrooms: £88,216
Source: Airdna, Bath, October 2025 to September 2026.
Extra bedrooms raise the nightly rate, but the gain isn't always proportional, because demand for larger homes is more seasonal. Within each size band, these factors decide where your property lands:
Location: walking distance to the Roman Baths, the Abbey, the Royal Crescent and the station is the single biggest driver of nightly rate. See our guide to the best areas in Bath for a holiday let.
Parking: in central Bath, a parking space is a genuine selling point for drivers and families.
Character and presentation: Georgian features, professional photography and a well-written listing help a property stand out. If you own a listed or period home, read running a period holiday home in Bath.
Availability: the more nights you open up, especially weekdays and winter, the more you can earn. Blocking peak dates for personal use has the biggest impact.
Reviews: strong review scores improve your ranking on Airbnb and Booking.com, which feeds straight into occupancy.
Which Bath properties tend to perform best?
City-centre flats suit couples and short city breaks all year, so they usually sit at the higher end for occupancy.
Georgian townhouses appeal to guests who want a stay that feels distinctly Bath.
Larger family homes further out often have lower occupancy but higher nightly rates and longer stays, with demand peaking in school holidays.
Homes with a standout feature, such as a garden, roof terrace or view, can justify a higher rate in a crowded market.
Seasonality: how income changes through the year
Bath earns money all year, but not evenly. Across the city, average occupancy over the last 12 months moved like this:
Winter (January–February): the quietest stretch, with occupancy of 40% in January and 54% in February. Midweek pricing and longer stays matter most here.
Spring (March–May): demand builds from 52% in March to 66% in May, helped by Easter and weekend city breaks.
Summer (June–August): peak season, with occupancy of 63% to 73% and average monthly gross income of around £3,400 to £4,150 per property.
Autumn (September–October): still strong at 62% to 68%, with festivals and rugby weekends.
November–December: occupancy of 53% to 62%, with the Christmas Market driving some of the highest nightly rates of the year.
Source: Airdna, Bath, October 2025 to September 2026.
Occupancy on its own can mislead. A property that's full at a low rate can earn less than one booked 70% of the time at a strong rate, which is why revenue per available night is the better measure. For practical ways to lift the quieter months, see how to fill a Bath holiday let in winter.
The costs to factor in
Gross booking revenue is not what lands in your account. The main costs are:
Platform and channel fees
Management fees and VAT, if you don't self-manage
Cleaning and laundry after every stay
Utilities, broadband and council tax or business rates
Insurance designed for short lets
Maintenance, repairs, replacements and consumables
Mortgage or finance costs, and income tax
Smaller costs add up quickly with frequent guest turnover, and highly leveraged owners will find margins much tighter than those who own outright.
A worked example: from gross to net
Here's an illustrative example for a two-bedroom Bath property earning the city's two-bed average of £37,564 a year in gross booking revenue. The revenue figure is the Airdna average; the fees and running costs are examples, so your own numbers will differ.
Gross booking revenue: £37,564
Platform and channel fees (around 15%): −£5,635
Net booking value: £31,929
Pass the Keys fee (20% of net booking value): −£6,386
VAT on the management fee: −£1,277
Cleaning and laundry (80 stays at £60): −£4,800
Utilities, broadband and council tax or business rates: −£3,600
Maintenance, consumables and insurance: −£2,400
Owner income before mortgage and tax: £13,466
In this example the owner keeps about 36% of gross booking revenue before mortgage costs and income tax, and spends no time on guests, cleaners or pricing. When you compare management quotes, compare them on the money you'd actually keep, not the headline commission. Our pricing page explains what our fee covers.
Short let or long let in Bath?
Short lets usually earn more gross income than a long-term tenancy, but they carry higher costs, more work and more seasonal variation. Before switching, model the same property both ways on net income after all costs. If the short-let figure isn't comfortably higher, the extra effort and risk may not be worth it.
Where short lets tend to win:
Higher revenue potential, with rates that move with demand
Flexibility to use the property yourself on quieter dates
More control over the condition of the property between stays
Where they're harder work:
Income varies month to month
Guest communication, cleaning and maintenance run constantly
More rules and tax considerations (see below)
Rules and tax that affect profitability
Tax: the furnished holiday lettings (FHL) tax regime was abolished from April 2025, so holiday let profits are now taxed much like other rental income. Speak to an accountant about your position.
Council tax or business rates: in England, a holiday let is assessed for business rates if it's available to let for at least 140 nights a year and actually let for at least 70. Otherwise it pays council tax, which may include a second-homes premium.
Planning: depending on how often you let the property and whether it's your main home, short-letting can count as a change of use that needs planning permission. Listed-building consent can also apply to period homes. Always check with Bath & North East Somerset Council before listing.
Our guide to how Bath hosts are adapting to 2026 regulations covers the local rules in more detail.
How to make a Bath short let more profitable
Price every night, not every season. Rates should move with events like the Christmas Market and rugby fixtures, with weekdays and weekends, and with how far ahead people book.
Open up midweek and winter. Longer-stay discounts and flexible minimum stays help fill January to March.
List on more than one channel. Booking.com and Vrbo reach guests who never search Airbnb.
Invest in photos and the listing. Professional photography and a description that sells your location and period features lift conversion.
Protect your reviews. Fast replies, spotless changeovers and quick fixes keep review scores high, which keeps you visible in search.
Plan owner stays carefully. Blocking quieter weeks rather than peak dates protects your income.
Is professional management worth it?
For many Bath owners, yes, especially if you don't live locally or don't want a hands-on role. A full-service manager handles guest communication, dynamic pricing, multi-channel listings, cleaning and laundry, maintenance coordination and compliance support. Management fees reduce gross income, but they can improve net returns through higher occupancy, better pricing and fewer costly mistakes.
If you're weighing up providers, our guide on how to choose the best short-let management company in Bath walks through what to compare, or find out more about our holiday let management in Bath.
FAQs: short-letting in Bath
Is short-letting profitable in Bath in 2026?
Yes, for the right property. Bath's year-round demand keeps occupancy steadier than many seaside or rural markets, but margins are tighter than a few years ago, so check the numbers property by property.
How much can I earn from a short let in Bath?
Bath short lets averaged £38,479 in gross booking revenue over the 12 months to September 2026, from around £26,593 for a one-bedroom property to £57,271 for a four-bedroom house. What you keep depends on fees and running costs.
What is the average occupancy rate for short lets in Bath?
Average occupancy was 60% over the last 12 months, highest in July (73%) and lowest in January (40%).
What is the average nightly rate in Bath?
Bath short lets averaged £200.79 a night over the last 12 months, up 6.2% on the year before, with peak rates during the Christmas Market and summer weekends.
Is a short let more profitable than a long-term let in Bath?
Often, but not always. Short lets usually earn more gross income but carry higher costs, more work and more seasonal variation. Compare both on net income after all costs.
Is Bath oversaturated with short lets?
There is competition, with more than 1,300 active listings, particularly in central areas. Well-presented, well-priced properties with strong reviews still perform well.
Do I need planning permission for a short let in Bath?
It depends on how often you let the property and whether it's your main home. Check with Bath & North East Somerset Council before listing, and see our regulations guide linked above.
Find out what your Bath property could earn
Every property is different. For a personalised estimate, use our income calculator or speak to Chris and the Bath team about our short-let management in Bath.