One of the easiest ways to fund a trip is to turn your home into a short let while you’re away. Depending on where you’re based, there’s a good chance you could make enough money to cover the cost of flights, accommodation and meals. Want to know more about transforming your property into a profitable short let on Airbnb? Want to know how an Airbnb management or property management service can help turn your dream into a reality? We have some helpful insights for you!
Income from UK short-term lettings
There is plenty of money to be made if you own a property in certain parts of London and want to rent it out as a short-term let on Airbnb. The amount you can earn really depends on where your property is located, for how long you make it available for and when you let it out.
Currently, one-bedroom short lets on Old Chapel Road and Pentonville Road rent for around £100/night. You’re looking at an average nightly rate of £220/night for short lets on Marlborough Street and Fleet Street and up to £350/night for short lets in Mayfair and Park Lane.
How to calculate your holiday let rate
When you’re working out your nightly rate, always consider adjusting it according to the season. Obviously, you can earn much more over popular holiday seasons like Christmas and Easter. Some hosts will hike up their prices by 50 per cent over those periods.
Also, keep across major sporting and cultural events. If you have an apartment close to Wimbledon, chances are you will be able to considerably hike up your short let rental rates during the tennis season. Similarly, if you own a property in Edinburgh – adjust your overnight rates so that you can make the most of the Fringe Festival and other artistic events.
The benefits of short-term lettings
Financial gain – Turning your home into a short-term let in London can be a highly lucrative move, especially if your short let is located in a thriving area in the city.
Earning while you holiday – Instead of leaving your house empty when you go away over the Summer, Airbnb allows you to actually earn money from your primary property – money that can pay for your holiday.
Flexibility – By making your home a short-term rental, you can decide when and for how long guests will stay. If you have family coming to visit, you can block off those calendar days.
Passive income – With the help of trustworthy friends or an Airbnb management company, your holiday let can earn you a passive income which you can manage remotely from anywhere in the world.
Security – Many people will actually pay for someone to housesit their place if they are going to leave the country for an extended period of time, as they don’t want their space to be empty for too long. By turning your home into a short-term let, you will have the peace of mind that someone will be looking after your space while you’re away. It also means that any issues that might go undetected if the house were to remain empty – such as leaking pipes or electrical faults – will not get out of hand. More here.
Earn your holiday as an Airbnb host
We thought we’d have some fun and create a few dream scenarios to give you some idea of how short lets have the potential to completely take care of all your holiday pocket money.
Dream scenario 1: One-year around-the-world backpacking trip
A holiday for university graduates or thirty-something’s wanting to take a year out of life to explore the world – staying in a budget to mid-range accommodation and relying on a reasonably priced around-the-world ticket: Budget £10,000 – £16,000
Funding it through Airbnb: By placing your one-bedroom apartment in Angel, Islington at £115/night you can cover the cost of your trip in just 87 days.
Dream scenario 2: One-week luxury getaway to St. Barths
A holiday for those who want to live the high life – staying in five-star resort accommodation and enjoying the finer things in life: Budget £5,000
Funding it through Airbnb: List your one-bedroom apartment in Marlborough Street at £220/night on Airbnb for just 23 nights.
Dream scenario 3: Family vacation to Disney Land Paris
All-inclusive 4-day holiday for a family with two kids under the age of 10 at Disney Land Paris: Budget £2,500
Funding through Airbnb: Place your three-bedroom apartment in Wimbledon at £165/night for 16 days on Airbnb.
If you are running a short-term rental in London, it’s important that you’re aware of the 90-day rule. There are laws in place in the UK that might affect your Airbnb property so be sure to read our 90-day rule blog so that you don’t get caught out. For more information on alternative solutions, check out our article about turning your Airbnb into a long stay let.
Managing your Airbnb remotely
The best way to trust that your short-term rental is running smoothly while you’re away is to hire a property manager or Airbnb management company to help you. There are plenty of things you can do to manage your Airbnb remotely but it’s always helpful to have a team on the ground who can assist with greeting guests, handling laundry, dealing with emergencies and ensuring your property gets amazing reviews.