Short-Let vs Long-Let in Kampala: Income Compared
Updated 3 November 2026 · Land & Property editorial team
A short-let in Kampala pays more than a long lease only when occupancy stays high enough to cover extra costs. Knight Frank (2026) puts median Airbnb occupancy at 44 percent and the median nightly rate at US$39, about US$6,333 of revenue a listing a year. Our model shows the occupancy a flat needs to beat a long let, as at November 2026.
- Median Airbnb occupancy, Kampala
- 44% (Knight Frank 2026, Airbtics data)
- Median booked nightly rate
- US$39 (Knight Frank 2026)
- Estimated revenue per Airbnb listing
- US$6,333 a year (Knight Frank 2026)
- Prime residential occupancy, long lets
- about 84% in H1 2026 (Knight Frank)
Does Airbnb pay more than long rent in Kampala?
It can, but not by default. A short-let earns a higher rate per night, yet it is empty on more nights, and it costs more to run. A long lease earns less per month but is occupied for most of the year, with one tenant to manage.
Knight Frank's 2026 Kampala short-term rental report, which uses AirDNA and Airbtics data, gives the market averages for Airbnb-visible listings: 3,478 active listings in December 2025 (up 56.7 percent on the year), a median booked rate of US$39 a night, median occupancy of 44 percent, estimated average revenue of US$6,333 per listing a year and RevPAR of US$16.7. By contrast, Knight Frank's H1 2026 review says prime residential occupancy for conventional lets was about 84 percent. The two figures measure different things, but the gap shows why you must model occupancy, not just the nightly rate.
What are the three models?
| Feature | Long lease | Short-let (Airbnb-style) | Serviced apartment |
|---|---|---|---|
| Typical stay | 12 months or more, monthly rent | Nights to weeks, mostly under 30 nights (Knight Frank definition) | Managed like a hotel; NGO and consultant stays of 14 to 60 days per Knight Frank |
| Who runs it | Landlord or agent, one tenant | Owner or manager, many guests | Operator with cleaning, reception, services |
| Income pattern | Steady, one payment a month | Seasonal; peaks in Dec to Jan, troughs in Feb to Mar and Jul to Aug | Corporate or institutional, steadier than leisure |
| Main risk | Void between tenants; rent arrears | Low occupancy; supply growth; outages and bad reviews | Donor funding cuts; heavier running costs |
| Rules | Landlord and Tenant Act 2022 | Tourism registration and tax; condo by-laws | As short-let, and VAT in principle per Knight Frank |
The seasonal pattern is from Knight Frank's demand calendar, which names December and January as the primary peak and calls July and August the softest rate period. Knight Frank also reports a pronounced rise in 3 to 6 month furnished lets in prime areas during H1 2026. That sits between the long lease and the short-let, and is the easiest first step for an owner of a furnished flat. See furnished apartments for rent Kampala.
How do I compare income with stated assumptions?
Use break-even occupancy: the share of nights a short-let must be booked to match a long let after costs. The formula is:
Break-even occupancy = annual long-let rent divided by [nightly rate times 365 times (1 minus the share of revenue spent on costs)]
The worked example below uses invented inputs for illustration, not market facts. Assume a one-bedroom flat in a middle-tier area such as Bugolobi, where Knight Frank gives a typical nightly rate of US$50 to US$80. We take US$65, the midpoint. Assume a long-let rent of UGX 2,500,000 a month (UGX 30 million a year), and an exchange rate of UGX 3,600 to the dollar, which is US$8,333 a year. Check the day's rate before you use this.
| Costs as a share of short-let revenue (your assumption) | Break-even occupancy | Compared with the 44% median |
|---|---|---|
| 0% | 35% | Below the median |
| 30% | 50% | Above the median |
| 50% | 70% | Far above the median |
At US$65 a night, a flat booked 44 percent of nights grosses about US$10,400 a year, and at 60 percent about US$14,200. Those are revenue figures before costs. Knight Frank lists elevated operating costs for cleaning, staff and utilities, and says UGX and USD mismatch affects locally financed operators, but gives no cost percentage, so we do not either. Put your own numbers in: cleaning, laundry, power, water, wifi, platform fees, management, repairs and replacement of furniture.
What occupancy should I assume?
Start from the data, then decide how far you can beat it. Knight Frank's median Airbnb occupancy is 44 percent for the segment as a whole,. The same report says execution matters more than location: professional operators outperform, and a well-managed unit in Kyanja can beat a poorly managed one in Kololo. It names photography, response time under one hour, dynamic pricing, reliable power and water, and review management as the levers.
For a plan, model three cases: a low case at or below the median, a base case a little above it, and a high case you could reach only with strong management. If a long let wins in your low and base cases, the long let is the safer choice. Supply is also rising. Knight Frank expects over 1,000 new apartment units in prime zones within 24 months, many of which may seek short-stay use, which pressures rates.
A booking made through Land & Property follows the Airbnb-style route. The guest pays us, we keep a percentage of the booking and pay the owner after that, so subtract our percentage from revenue in your model. Ask us for the current percentage. See Airbnb in Kampala: Areas, Hosting Rules and Tax.
What about costs and tax?
Short-lets add costs that long lets mostly pass to the tenant: cleaning between guests, linen, utilities, wifi, consumables and replacement furniture. Knight Frank treats backup power and water storage as a baseline, not an extra, because outages are frequent.
On tax, Knight Frank states that short-term rental income is taxable under the Income Tax Act. URA's 2022 guidance for rental income taxes an individual at 12 percent of gross rent above UGX 2,820,000 a year with no expense deduction, and a company at 30 percent after allowing 50 percent of expenses. Because the individual rate allows no deduction for costs, a short-let with high running costs is taxed on gross rent. Confirm the current rule and whether short stays count as rental or business income with URA. The full rules, with tourism registration and VAT, are in airbnb tax, and the general guide is rental income tax.
A long lease is governed by the Landlord and Tenant Act 2022: one deposit of up to one month, up to three months of advance rent unless agreed, rent increases of no more than ten percent a year with 60 days' notice, and sixty days' notice to end a year-to-year tenancy (sections 24, 26, 30 and 38).
Is a rental block a different kind of income?
Yes. If you own many small units, the income comes from volume and low costs per door. Read muzigo rental business for that model. To start letting a flat, see Rentals Uganda and then homes to rent now for comparison rents as listings are added.
Frequently asked questions
Does Airbnb pay more than long rent in Kampala?
Only if occupancy stays high enough. Knight Frank (2026) reports a median Airbnb occupancy of 44 percent and a median rate of US$39 a night. In our example, a short-let needs about 50 percent occupancy to match a long let when costs take 30 percent of revenue.
What occupancy should I assume?
Run a low case at or below the 44 percent Knight Frank median, a base case slightly above it, and a high case that needs strong management. Do not assume the high case. Prime long lets were about 84 percent occupied in H1 2026.
Which months earn most?
Knight Frank names December and January as the primary peak, May and June as a secondary peak, and September to November as a third. February and March, and July and August, are the troughs, so use dynamic pricing in the weak months.
Is short-let income taxed differently?
Knight Frank says it is taxable under the Income Tax Act. URA guidance from 2022 sets 12 percent above UGX 2,820,000 a year for individuals on rental income. Whether a short stay counts as rental or business income is not settled in the sources we checked, so confirm with URA.
Sources
- Kampala Short-Term Rental Market Report 2026, Knight Frank Uganda (accessed 2026-11)
- Kampala Property Market Performance Review H1 2026, Knight Frank Uganda (accessed 2026-11)
- Rental income tax in Uganda (Aug 2022), Uganda Revenue Authority (accessed 2026-11)
- Landlord and Tenant Act, 2022 (sections 24, 26, 30, 38), ULII / Parliament of Uganda (accessed 2026-11)