I quite like the idea of owning a property that could provide good returns whilst also having the option of using it ourselves, like anything property related I imagine location and quality of finish would get the best returns.
Just wondered if anyone here owns an Airbnb or has experience of this sector as in pros and cons?
Our son has just started with his first near the racecourse in York.
He has had the four bedrooms rented for eight years to students but decided on Airbnb at the end of last year, he spent several grand to update the property, kitchen, bathrooms, decs, carpets etc.
His initial is it’s going very well
Pitch
Thanks, as your son has done it looks best to find a local attraction, beach, national park etc and design/fit the property to suit that market, good luck to him, must be less hassle than renting to students!!Originally Posted by Pitch3110
Two friends of mine have holiday homes near the Beach. Portstewart if anyone knows it, and they Airbnb them — during peak time like the North West races / golf events they do really well. Patchy rental the rest of the year, and they get the use themselves. Average income over the year is higher than a standard rental, but there is the added costs of electricity, WiFi, cleaning etc
Cheers fella. He is feeling his way but has good guidance from a couple of pals who have done it. I can certainly put you in touch once he has a bit more time under his belt.
Pitch
I have a residential let in Hillsborough, right in the village, 3 beds and off st parking. Quaint old cottage type property. The current tenant leaves at end of Feb and I am seriously considering trying it on air BnB to test the water. I'd you never try then you never know.
Sent from my Nokia 1.4 using Tapatalk
Our neighbours let their 5 bed, 4 bath house out on the Suffolk coast - they did it really professionally, providing a first class service (welcome pack from the local deli, beds for dogs, high chairs for toddlers catered for, everything immaculate in the house, electric car charger, etc etc). It was advertised through a cottage rental specialist and they had their own website for it too. Despite the price (circa £3650pw in high season, £2500 in low season) it was occupied pretty well continuously from late February to the end of October plus Christmas and New Year every year, with a high level of repeat bookings.
They lived nearby and did the changeover work and routine maintenance themselves. After six years or so, they have just retired and are living there full time now. They put the effort in to provide a top notch experience and made a very good living from it.
What are the compliance requirements for AirBNB?
With traditional landlords being loaded up with required EICR and EPCs with level C required in 2025 is this an alternative easier option?
I’m sure you’re aware but if mortgaged on a BtL it’s likely that won’t cover Airbnb type holiday lets.
Thanks, I heard of a similar story from someone else which has giving me the idea to look into Airbnb rather than the residential rental market.
Financially it looks a better route, but I really like the idea of just letting on a short term holiday basis rather than a long term rental which can bring all sorts of problems with a bad tenant..
Just as many tales of bad AirBnB tenants as there are residential … pop up brothels and parties to name two.
The checking process for traditional tenants is quite rigorous compared to nothing for Airbnb.
I’m tempted but don’t be thinking it’s an obvious choice.
Regarding apartments, more and more complexes no longer allow holiday rentals. I'm currently buying an apartment on Swansea seafront and whilst residential lettings are allowed, holiday letting are not. There were a few different properties all along the South and West Wales coast we looked at that also had this stipulated. Residents associations and management companies are I assume behind this due to the potential noise and nuisance factor.
Some even had to be your own primary residence, not even a holiday home for yourself and so were out for us. These were stipulated so by the local council due to affordable housing concerns, fair enough in some areas.
So basically, check first before making an offer.
To be fair I think any property let is open to problem tenants, the benefit of holiday lets is its only temporary and your not locked in with a bad tenant that current laws currently protect, I have not looked into it so I may be way off but I think there is some kind of insurance with Airbnb..
Yes I have seen properties in great locations that say no holiday lets, most of these are apartments with leaseholds, I'm thinking of a detached freehold to limit neighbourly problems, also if my neighbour decided to let their property out via Airbnb I wouldn't be happy so would feel hypocritical if done this to someone else..
A detached freehold would reduce the potential problems for sure.
This is important and is why we decided not to buy a property for AirBnB use last year - we lived ~ 3 hours away and finding a reliable local cleaner was a concern.
You'd also need to pay the additional 3% stamp duty
Very good questions. "Furnished Holiday Letting" is also significantly income tax advantaged compared to Buy To Let - although income is potentially VATable.
Some thoughts here:
https://www.independentcottages.co.u...y-home-owners/
Last edited by David_D; 10th January 2022 at 14:29.
Sorry if I wasn't clear - this is (or rather was) a holiday rental - Saturday pm to Saturday am. They cleaned etc between the guests on Saturdays. I'm not sure if it was also available via Airbnb but was on Suffolk Secrets and their own website. Any weeks they wanted it for themselves, they could have blocked it off but basically they lived there Nov/Dec/Jan/Feb except for Christmas and New Year - one/two more weeks at the high season rate.
As has been said, if this was a second property bought now it would attract an extra 3% stamp duty. But on the other hand I think you don't pay council tax - or full council tax - as long as it is available for renting out for (I think) 40% of the year.
Last edited by JonRA; 10th January 2022 at 14:38.
Posting Permissions
Reply With Quote