Spill the beans ... on renting a spare room for your holiday websites

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  • jordylass
    jordylass Posts: 1,092
    First Post Name Dropper First Anniversary
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    Ages since an update to this conversation. The website is www.airbnb.com they recently took over the more local crashpadder.
    Airbnb had an event about the Olympics for London hosts last night in Bloomsbury theatre with complimentary pimms :) it was a bit dull, although the TFL rep was very entertaining.
    I've hosted with them for quite a while, and my bookings are fairly steady because of the amount of reviews and references I have, but it must be hard to start now as there are about 30 rooms in my area as oppose to 5 a year ago...but that all means lots of choice in terms of accomodation and cost for people traveling to London.
    I have been and hosted couchsurfers for many years so it isn't that much different and airbnb have a huge insurance policy should something go radically wrong. Having said that I've only met nice people and have no heistation in recommending it as a way to travel.
    There is nothing either good or bad but thinking makes it so.
  • juli_2
    juli_2 Posts: 5 Forumite
    I wonder if you can give me some advice? These sites e.g. airb&b look very interesing and I do have
    a self-contained annexe room available. However I would only let it very occasionally e.g at weekends only?
    I spoke to my mortgage company and they say i would need a
    commercial mortgage, which they don't offer. I think a commercial mortgage would make it too expensive to proceed. I can understand if I was to run it as a commercial B&B but it is
    just one room,andI would only let it when convenient.
    Its in lovely spot though
    and think it would be popular with tourists,
    but a commercial mortgage sounds an expensive option.
    I thought about the lodger scheme, but I want
    the room to be available to family and thsi would give
    more flexibility How do people tackle the mortgage issue?
    Thanks for your help:)
  • miduck
    miduck Posts: 1,800 Forumite
    juli wrote: »
    I wonder if you can give me some advice? These sites e.g. airb&b look very interesing and I do have
    a self-contained annexe room available. However I would only let it very occasionally e.g at weekends only?
    I spoke to my mortgage company and they say i would need a
    commercial mortgage, which they don't offer. I think a commercial mortgage would make it too expensive to proceed. I can understand if I was to run it as a commercial B&B but it is
    just one room,andI would only let it when convenient.
    Its in lovely spot though
    and think it would be popular with tourists,
    but a commercial mortgage sounds an expensive option.
    I thought about the lodger scheme, but I want
    the room to be available to family and thsi would give
    more flexibility How do people tackle the mortgage issue?
    Thanks for your help:)

    If you are looking to let the room out then you will be running a business from home, and you will need the relevant permissions from your lender and the correct insurance cover. Your income would also need to be declared to HMRC.

    With regard to the mortgage, if the lender deems that you need a commercial mortgage then so be it. This is not the same as having a lodger - the same person renting the room on a regular basis.
  • hi,
    I've tried couch surfing on and off and got on ok with it, but when I wanted to stay in LondonI 've used a website called Room Paddy It's a newer version of airbnb (I think, I've never used them) and it was great. Helpful people, a good selection and you can chat to your host before committing anything. Also, if the place is grubby or not like it was advertised you can call them and you get a refund, so you have some security.

    I decided to put my spare room on there when I returned and it's working out great so far, had a couple of people to stay who I've really got on with and it's been tremendous fun.

    I really recommend people's spare rooms as somewhere to stay and if you need a bit of extra cash renting yours is a fun and flexible way of doing it!:j
  • I think a note of caution is due to people considering using AirBnB - although the company is actually involved in every transaction - they take the money and pass it on to the owner less their cut - the company makes no checks to verify that the commendations are genuine - and some at least are false.

    One guy near us rents out his whole house and never actually lives there - effectively doing what the State of New York was concerned AirBnB was doing, namely allowing people to start illegal hotels which fail to meet the fire regs etc.

    His site includes at least two wonderful testimonials - from his sister who lives just four doors away! Now, of course, if you believe pigs can fly he may be charging his relatives to stay in his house but the smart money knows better. And of course, even though her photo shows clearly who it is, nowhere in the testimonials does she reveal she's the sister of the owner.

    In my view this is misleading at least, misrepresentation at worst. The important thing is that AirBnB make no attempt to stop this misleading practice and if the ignored email I wrote to them is any indication, they aren't interested either. They don't even bother to put up a caution like Trip Advisor do now they've been caught out publishing false testimonials.

    So, make up your own mind, but be aware and beware.
  • miduck wrote: »
    If you are looking to let the room out then you will be running a business from home, and you will need the relevant permissions from your lender and the correct insurance cover. Your income would also need to be declared to HMRC.

    (snipped)

    I understand that HMRC are aware of the potential for owners using AirBnB's service to avoid tax liability since the owners receive their share of the income from AirBnB via Paypal. Compared to opening a simple savings bank account or even doing business with a solicitor in the UK, opening a Paypal account is easy. Anyone with a business overseas can easily put all his income via AirBnB outside the clutches of HMRC.
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