London remains one of the most lucrative markets for serviced accommodation—a model that blends short-term letting with hotel-style amenities. For those without property ownership, the rent-to-serviced accommodation (R2SA) strategy offers a low-barrier path to enter this high-yield sector.
But this strategy comes with legal, regulatory, and operational complexity—especially in London, where local councils enforce planning laws, licensing schemes, and Airbnb restrictions. This guide explains how to set up and manage rent-to-serviced accommodation legally and profitably in London, and how Fraser Bond supports investors in building compliant, scalable businesses.
Rent to Serviced Accommodation (R2SA) is a property strategy where:
You rent a property (typically from a landlord under a company let or management agreement)
You legally sublet it as short-term accommodation to tourists, professionals, or corporate clients
You earn profit from the difference between your rent to the landlord and the income generated from nightly stays
It is also referred to as:
Corporate lets
Short-term rental arbitrage
Airbnb subletting (when legally permitted)
You must obtain written permission from the property owner, and they must confirm that their mortgage lender and insurance allow short-term subletting.
In most London boroughs, letting a residential property as short-term accommodation for more than 90 nights per calendar year requires planning permission (Sui Generis or C1 use).
Properties under 90 days on Airbnb fall under the "90-day rule"
Some boroughs (e.g. Westminster, Camden) are especially strict
Depending on the borough and property type, you may need:
A Temporary Event Licence
An HMO licence (if you also house multiple tenants)
Business rates registration instead of council tax
Fraser Bond can help assess the legal requirements for your intended operating area.
Use a Company Let Agreement or a Management Agreement
Ensure the contract allows commercial subletting for short-term stays
Include clauses covering responsibilities for cleaning, maintenance, insurance, and compliance
Fraser Bond assists in drafting and reviewing these agreements to ensure all parties are protected.
List on platforms such as Airbnb, Booking.com, Expedia, and VRBO
Register with the ICO if storing tenant data
Inform the freeholder (if leasehold) and building management to avoid breaches of lease terms
Provide modern furniture, quality linens, kitchen equipment, and high-speed Wi-Fi.
Arrange professional changeover cleaning with linen service, restocking, and damage checks.
Use smart locks or lockboxes to simplify access and improve guest experience.
Automate guest messaging and request feedback for ongoing visibility and high occupancy.
Fire safety compliance – smoke alarms, fire doors, extinguishers
Gas Safety Certificate
Electrical Installation Condition Report (EICR)
Public liability insurance for short-term guests
Fraser Bond helps operators complete all safety requirements and ensures insurance is correctly structured for short-let activity.
Operating without planning consent (can result in enforcement action and fines)
Breaching lease or mortgage terms
Failing to register as a business or pay appropriate taxes
Poor property and guest management leading to low ratings or complaints
Inadequate agreements with landlords, leading to disputes
Despite restrictions, demand remains strong in key areas like:
Zone 1–3: business travellers, tourists, and relocating professionals
Near transport hubs: Canary Wharf, King’s Cross, Stratford
Close to hospitals and universities: perfect for medium-term stays
High nightly rates and low void periods make this model viable when operated legally and professionally.
Fraser Bond offers end-to-end support for investors and operators using the R2SA model in London:
Contract setup and landlord negotiation
Planning and licensing assessments
Safety compliance and insurance
Ongoing management services (optional)
Referrals to brokers, accountants, and cleaners
Whether you’re launching your first unit or scaling to 10+ properties, Fraser Bond ensures your rent-to-SA strategy is sustainable and fully compliant.
Rent to serviced accommodation is a powerful income strategy—but only when it’s executed with legal precision and operational professionalism. In London, where regulation is strict and enforcement is growing, success depends on partnering with the right legal, property, and compliance experts.
Fraser Bond helps you structure rent-to-SA agreements that are profitable, scalable, and 100% compliant with local laws.
Fraser Bond helps landlords and operators launch rent to serviced accommodation models safely, legally, and successfully across Greater London. From contract drafting to guest turnover systems, our team delivers everything you need to operate with confidence.
Turn rent into revenue—partner with Fraser Bond for expert rent-to-SA setup in London.
