airbnb - what can you tell me...

Conrad

I know this question could be posted in the property section but I don't know people there, I know you people and would value any input.


I know nothing of airbnb, really nothing, other than I keep hearing halve caught snippets on the news that Landlords are turning to this service.


My question is, why? What are the benefits compared with normal lettings on an AST contract?


The snippet of news I caught earlier was that Landlords are using the service and rents are increasing as a result?


Ta

Herzlos

Main benefit is you can rent it out on a nightly basis for a much higher return than you would for a standard 12-month renter.

Stevie_Palimo

I think it is really about offering short term lets and mainly people do tend to go from one Country to another with the properties listed within the website, This will then increase the rent gained against each place but you need to leave it on there alone as it would conflict if you had other tenants going in at other stages.

I did use it once on a apartment in Manchester without any issues bar the fact that I thought the deposit was high.

Conrad

What about the hassle factor - would I be constantly arranging keys handover, property cleaning etc etc?


Presumably only furnished property? My Letting Agent mate always guards against furnished as it leads to no end of hassles and additional regulator requirements and checks

ruggedtoast

You are effectively renting out your property as a hotel room on a nightly or weekly basis to people on business or holiday.

You determine whether you want to let to them based on the feedback they have received from their previous hosts. They will do the same with you.

You will occasionally have to clean the property if you expect people to want to stay there and not walk out giving you a zero star review and receiving a full refund from Airbnb.

The trade off for the hassle is that they pay you for a service that you have promised them to an agreed standard, which you then actually provide.

I appreciate as a buy to let landlord this is a rather alien concept for you.

Herzlos

Conrad wrote: »

What about the hassle factor - would I be constantly arranging keys handover, property cleaning etc etc?


Presumably only furnished property? My Letting Agent mate always guards against furnished as it leads to no end of hassles and additional regulator requirements and checks

Yup, think of it like a hotel or B&B, and not as a rental. Who's going to want to pay you over the odds to stay in your place for the night if you don't provide furniture, keys and cleaning?

chucknorris

Conrad wrote: »

I know this question could be posted in the property section but I don't know people there, I know you people and would value any input.


I know nothing of airbnb, really nothing, other than I keep hearing halve caught snippets on the news that Landlords are turning to this service.


My question is, why? What are the benefits compared with normal lettings on an AST contract?


The snippet of news I caught earlier was that Landlords are using the service and rents are increasing as a result?


Ta

I imagine letting in this fashion would be not be allowed by standard BTL mortgages, so probably only suitable for mortgage free properties.

I couldn't be bothered with all the hassle.

beecher2

I've used airbnb a lot - a lot of UK properties now use keysafes for collection of keys which would cut down on the hassle. I've picked up keys from neighbouring cafes too. I think most employ cleaners and you're usually expected to put your own rubbish out.

Some people rent out a room in their houses and others rent out their houses when they're away on holiday themselves. I think it is very trusting though -my most recent airbnb had all of the owner's possessions lying around.

If you're going to make £100 a day plus, then it is probably worth the hassle, especially if you're in a holiday resort. Berlin have banned them because they have pushed up the rent as so may properties were being used.

chucknorris

beecher2 wrote: »

I've used airbnb a lot - a lot of UK properties now use keysafes for collection of keys which would cut down on the hassle. I've picked up keys from neighbouring cafes too. I think most employ cleaners and you're usually expected to put your own rubbish out.

Some people rent out a room in their houses and others rent out their houses when they're away on holiday themselves. I think it is very trusting though -my most recent airbnb had all of the owner's possessions lying around.

If you're going to make £100 a day plus, then it is probably worth the hassle, especially if you're in a holiday resort. Berlin have banned them because they have pushed up the rent as so may properties were being used.

It wouldn't be worth the hassle to me, that £100 would probably become about £50 after allowing for cleaners, advertising fees and voids, we make more than that with standard letting, and without the hassle. I would also have to redeem my current mortgages which are averaging less than 1%.

beecher2

I'm saying £100 a day but I only tend to look at 1 bed flats, but looked at a property near me which is £400/night. Never looked at London or South East but I imagine prices are much higher there

chucknorris

beecher2 wrote: »

I'm saying £100 a day but I only tend to look at 1 bed flats, but looked at a property near me which is £400/night. Never looked at London or South East but I imagine prices are much higher there

I still wouldn't do it, if you want to do it, go ahead, I'll be interested in your feedback, but I'm selling property soon anyway. Looking forward, shares look better than London property to me.