In the last decade, the astronomical rise of companies like Airbnb has caused millions of UK homeowners to consider the lucrative industry of short-letting.
The monopoly of hotels in the accommodation industry is long gone, replaced by a more economical, authentic ‘rent a room’ culture brought to the world by market leaders Airbnb. The remarkable ‘staycation boom’ of 2021 is set to continue into 2022, and it looks like the appetite for a ‘home away from home’ is here to stay.
The rise of a more authentic form of tourism has transformed the demand for short stay properties, in which holidaymakers can ‘live like a local’ far more honestly than they could in a local multi-storey hotel chain.
The financial rewards associated with short letting are certainly lucrative, and over 223K properties are now listed on this market-leading platform in the UK but you may be wondering how to become an Airbnb host in the first place?
Luckily, we’ve done the research for you! Here is Pass the Keys® ultimate guide to becoming an Airbnb host:
First things first, you will need to take a reality check on your potential earnings. Is your property in a desirable location? Is it easily accessible and close to transport links? These key factors will determine how much your property will earn so it's best to check out your local competition to get a rough estimate of your revenue and plan your profit margin goals.
You will also need to factor in semi-regular refurbishment/repair costs, and most importantly, be on hand to deal with guest queries and emergencies so your proximity to the property is essential. The work involved from short letting is no joke and can easily take an excess of 40 hours per week with regular bookings. Make sure you have the time to be a reliable host for your guests
Don’t fall at the first hurdle! In order to stand out on saturated platforms like Airbnb and Booking.com, it's vital that you identify your property’s niche. Rustic coastal cottage with an endearing maritime theme? Vibrant and characterful Brighton apartment for jazz enthusiasts? You get the drift… every property is unique, so don’t be afraid to shout about what makes your’s extra-special!
If your property is in London, be advised that the government operates a 90-day rule, meaning that your property can only be occupied for 90 nights per calendar year. Outside of London, this measure is relaxed but you will need to determine the regulations from the local authority of your rental property as the rules on short-letting are set to change in certain tourist locations.
If you are a renter yourself, be sure to consult your tenancy agreement regarding subletting before taking further action.
When it comes to setting a price, Airbnb has some nifty tools to help you set an optimum price per night. Using a dynamic pricing algorithm, the platform advises whether your price is in line with the market average, whether you should lower or increase your price based on expected surges in demand and other factors such as seasonality.
As a host, you can set a minimum number of nights that guests can book your property e.g. setting a minimum of 3 nights can help reduce those weekend party bookings and minimise the risk of property damage. You can also charge extra for guided tours and any extra guests.
Remember to incorporate VAT into your price (the usual rate is 20%) and factor in cleaning and laundry costs.
Airbnb takes payment before guests arrive at your property, and you will be paid by your preferred payment method 24 hours after guests check-in. Airbnb charges hosts a flat service fee of 3%, but please note that your overall earnings may be affected by payment to co-hosts you enlist and seasonal pricing.
Few people are able to carry out their host duties without the support of at least one other person. From vetting guests, managing bookings, arranging cleaners and linen supply and providing guest support, it can quickly become a 24//7 job!
If you plan on renting out your property for anything longer than a month every year, you don’t have to struggle alone! Pass the Keys provides an end-to-end management service for short lets and will remove all the hassle, from check-in, guest support to cleaning.
To find out more about our services, please visit www.passthekeys.co.uk