Unlock Higher Rental Profits: 7 Proven Airbnb Pricing Strategies for London Landlords

Running a short-term let in London can be extremely profitable—but only if your pricing strategy is carefully managed. Many landlords still rely on guesswork, which often leads to empty calendars or undervalued bookings.

At 20Property Management, we specialise in Airbnb Management, HMO Property Management, and short-term lettings in London, helping landlords achieve consistent rental income while removing the stress of day-to-day hosting. Our full-service model covers everything: from listing optimisation and tenant sourcing to guest communication, compliance, maintenance, and 24/7 guest support.

In this guide, we reveal seven powerful pricing strategies that can transform the way your property performs on Airbnb—ensuring your calendar fills with the right bookings at the right rates.

1. Use Airbnb Insights and Professional Tools to Guide Decisions

Successful pricing starts with data. Airbnb offers built-in insights that many hosts overlook, including occupancy trends, booking windows, and average nightly rates. By switching on “Professional Hosting Tools” in your Airbnb dashboard, you gain access to this information instantly.

For landlords seeking even deeper market intelligence, dynamic pricing software such as PriceLabs provides detailed competitor data, seasonal trends, and market forecasts. At 20Property Management, we integrate these tools into our pricing strategy, ensuring landlords stay competitive without lifting a finger.

2. Understand Your Local Market—Street by Street

London’s property market is complex, and pricing can vary dramatically within a single postcode. A one-bedroom flat near King’s Cross may compete in a completely different segment than a similar property in Camden or Bloomsbury.

To maximise earnings, landlords must compare properties not just city-wide but within their immediate neighbourhood and competitive set. At 20Property Management, we analyse these micro-markets to identify the exact positioning that will attract steady bookings at premium rates.

3. Adapt Rates to Shifting Demand Levels

Demand for short-term rentals fluctuates throughout the year. Summer tourism, Christmas shopping trips, or major events like Wimbledon or fashion week can dramatically increase nightly rates. Conversely, off-peak seasons often bring slower booking activity.

The key is not to panic during quieter months. Instead, adjust prices strategically:

• High demand (75%+ occupancy expected): Push rates higher to test the ceiling.

• Moderate demand (35–75%): Keep rates competitive, avoid unnecessary discounts.

• Low demand (<35%): Focus on long-term stays, marketing, or listing improvements rather than slashing rates.

Our team manages this cycle on behalf of landlords, ensuring pricing is always aligned with market reality—not guesswork.

4. Use Minimum Night Stays to Maximise Occupancy

Minimum night settings can make or break your calendar. For example, requiring a three-night minimum during low-demand months might block valuable two-night weekend getaways.

Instead, landlords should adapt minimum stay policies to seasonal demand. During peak summer, longer stays can boost revenue and reduce turnover costs. In slower months, allowing one- or two-night bookings may keep your calendar full.

At 20Property Management, we continuously adjust these levers so our landlords capture every profitable booking opportunity.

5. Build the Right Competitor Set

Many landlords compare their property to the wrong listings—either far superior homes with extra amenities or budget flats that don’t reflect their property’s value.

A correct competitive set includes 5–9 nearby properties with:

• Similar bedroom and bathroom counts

• Comparable amenities and design standards

• A mix of budget and premium options to measure pricing gaps

By tracking competitor reviews, photos, cleaning fees, and rates, landlords can identify exactly where they stand in the market. 20Property Management performs this analysis for every property under our care, ensuring landlords outperform the right competitors—not the wrong ones.

6. Don’t Rush to Slash Prices When Bookings Slow

One of the biggest mistakes landlords make is panic discounting. Dropping prices too quickly often signals desperation and can even damage your property’s perceived value.

Instead, landlords should review:

• Photography: Are images professional and lifestyle-focused?

• Calendar settings: Are restrictive minimum stays blocking bookings?

• Listing descriptions: Do they highlight the strongest features?

• Amenities: Could a simple upgrade (e.g., luxury bedding, high-speed WiFi) make the property stand out?

Our property staging and listing optimisation services ensure London landlords never lose revenue because of overlooked details.

7. Measure Success Beyond Occupancy

High occupancy doesn’t always mean high profits. A fully booked calendar at discounted rates may earn less than a property that strategically balances fewer nights at higher nightly rates.

The true measure is Revenue per Available Night (RevPAN)—a combination of occupancy and average daily rate. At 20Property Management, we monitor this metric closely, ensuring landlords are not just busy but genuinely profitable.

Bonus Tip: Focus on Peak Season Performance

The bulk of your annual rental income is earned during peak travel seasons. Instead of chasing low-season bookings with aggressive discounts, landlords should invest that time in preparing properties for maximum performance during high-demand months.

Our team manages deep cleans, compliance checks, guest-ready furnishings, and seasonal adjustments—so when demand peaks, your property earns top-tier revenue.

Partner with London’s Airbnb Experts

Effective pricing is both an art and a science. While many landlords struggle with trial and error, 20Property Management provides a proven, data-driven approach to short-term lettings in London and across the UK.

With our full-service Airbnb Management, HMO Property Management, and short-term rental expertise, we remove the stress from hosting while maximising your rental income. From tenant sourcing to guest support and compliance, we handle everything—so your investment works harder for you.

👉 Ready to make your London property more profitable? Visit 20Property Management today to discover how we can optimise your rental strategy.