Dear All,
I’m wondering if anybody tried or knows of someobe who does this. I am researching the business model of renting long-term then putting the property on AirBnb starting with perhaps a couple of flats then adding more.
Appreciate any feedback about this.
Thanks but this is not related to my post. I am talking about renting a whole flat, for instance, for 12 months then sub-letting it on AirBnB.
Wow! This is a real undertaking. Myself, I have been booking BnB’s in London since 1984!
So you will rent a flat on a year’s lease, and then run it as an Air BnB rental. The economics work? You expect much more income from renting on Air BnB than you have to spend on the years lease?
I expect this would work, if you have a good location, and thus attract lots of renters. Is it well placed?
Number two. You will manage it personally day to day? I would be wary of contracting out this work, as it is another expense cutting into any profits.
Location is vital.
Being hands on is vital.
Screening guests in vital.
I have seen what type of people can show up to rent a place in London! You might get a college girl and a friend from Boston USA, or a family of 8 from Pakistan who rent a two bedroom and move in 8-10 people and start cooking. No joke here either! I have seen it many times.
If you don’t screen each renter via the Air BnB listing service, you could get in big trouble.
Mind who you rent to. Keep you hands on the tiller, as it were. If your calculations work, I don’t see why you can’t do it. Only be sure the demand is there, and that again is location!
I am also a 3 year + Air BnB host.
ah i see what you mean. we rented in London for almost three years in various locations and every single contract said you cannot have people stay for money and if you do you will basically be kicked out and lose your bond. If your landlord is a absent one then you’ll be fine. I had friends do this and never came into any trouble.
You may also come into trouble with your local council if you are not careful as it would be classed as an illegal HMO. http://england.shelter.org.uk/get_advice/private_renting/about_private_renting/houses_in_multiple_occupation_hmo
We also lived in properties where the landlord rents out each room individually (in London) and they even turned the living room into a bedroom (which is illegal in the eyes of the local council btw).
Hi James. Thanks for the tip. How’s the 90 day limit per year working for you in London ?
Hi Mark. What 90-day limit??
In London, you are prohibited to short let out your place for more than 90 days per calendar year.
MarK. Where? What law/laws? I grew up in London and have been renting properties there short and long-term for years. This is the first I have ever heard of this. So would appreciate some specifics.
“Restricting short-term use to no more than 90 days a year means that properties cannot be used as temporary sleeping accommodation on a permanent basis throughout the year, and any impact on local amenity is kept within acceptable limits”, it said.
Thanks. Said intends to. So has this happened? Also seems to apply to residents letting their properties. Not people who are letting properties in which they are not resident. Anyway seems to have had no impact on short-term flat rentals that are all over the city. Personally it has had absolutely no impact on our let. We have been full every day in 2016, and are full every day until mid-February.
Here’s another one. Please refer to clause 211
http://www.legislation.gov.uk/ukpga/2015/20/notes/division/5/46
OK. So this was always the case i.e. that a change of use was needed previously. This gives exemption from requiring planning permission if you let for less than 90 days. This had no impact on the short-term lettings market when in total force, adding an exemption will, I guess, have the same minimal impact.
But people do offer their flats for more than 90 days per year and do not ask for change in planning permission.
Exactly. So no impact.
Still doesn’t make it legal.
I never said it did.
This is not a London problem, it is all England, and presumably Wales as it is essentially the same legal jurisdiction. This would mean that every AirBnB in the two countries that has not applied for permission from the local council would be in breach of the law if they are rented out for more than 90 days. Like to see that enforced!
Hello again,
Sorry for bringing this up again but the numbers from http://insideairbnb.com/london/ are not encouraging at all. If, on average, the rent I will pay for a flat is £1500 there is not ONE single flat that brings in more than £1500 per month (according to the data). I am talking about renting long-term for AirBnb business model of course.
Hi Mark, I don’t want to get into specifics, but that data is bogus. Our apartment has brought in way more than that since we started renting, and that is after all bills, management fees, and set aside for tax. And it has also allowed us to stay in London when we have wanted to. For us it has worked brilliantly.
Do you rent it or is it owned by you ?