Over 80,000 rooms or homes in London are listed on Airbnb, that’s more than any other UK city. The short-term lettings market has grown swiftly in recent years due to the flexibility it offers tenants and the high yields landlords are able to obtain. Furthermore, the upsurge has resulted in the creation of many new management opportunities for letting agencies.
Hostmaker recently conducted a study in August 2019 aimed at UK adult homeowners to find out more about their opinions and views on short term lets and home rentals.
The study discovered that a fifth of UK homeowners (21%) said they would consider renting out their home as a holiday let, Airbnb or similar in order to make a bit of extra money. Just 1% of these respondents have already been involved in short term lets and would consider doing it again. 19% of our respondents said they would consider renting out their home as an alternative to selling, and 16% would consider doing so to weather the downturn in the property market.
Short term lets are considered to be rentals lasting less than six months, however, as they have now become a cheaper and better alternative to hotels, they often range anywhere from one night to a few weeks.
In this article, we explain why homeowners look into short term let businesses for several reasons and how at Hostmaker, we can help with accommodating to all types of demands.
Top Reasons Homeowners Start a Short Term Let Business.
A short term let business can be hard work but extremely rewarding. Thanks to the Airbnb revolution, short term rentals have become a profitable and cost-efficient opportunity providing that you can guarantee high occupancy and high rates.
There are many benefits we could name for starting your own short term lets business. Here are just some of the top reasons:
Short lets can achieve 30% higher rates and yields than long term lets. They are becoming increasingly more popular than hotels as it can feel like a home away from home and can be much more relaxing and often cheaper than staying in a hotel.
Whilst this is a high figure, you will need to take into consideration periods when you may be vacant – it’s highly unlikely that you will always be at full capacity.
Short term lets can be a great way of earning additional money, as you can earn up to three or four times more than your monthly costs.
The best bit is, it can be extremely easy to boost your income by increasing the rental costs, simply with the decor of your short let property or the attractive features it may have. These could include a hot tub, free parking, pets allowed, etc.
You make the rules
If you’re concerned about leaving the property in someone else’s hands while you aren’t present, the good news is that you still make the rules.
Similar to any hotel or b&b your guest might visit, there will always be a list of rules that guests will need to abide by during their stay. Having these rules in place will mean that the property should be left in the same condition as it was found and that there are no breakages or noise disturbances.
These rules are likely to include no smoking, no parties, no loud noises, no pets and a strict instruction that the guest must have left by the agreed check-out time.
Requesting to stay
Most homeowners considering short term lets will undoubtedly have some concerns about who they allow into their property. The great thing about short term lets is that you can decide particularly who is allowed to stay, by them having to request in the process of paying and reserving the property for the agreed time frame. This can be a great reassurance to many that they can relax knowing their property is in safe hands.
When your guests are reserving your short let property on Airbnb for example, you’re able to find out more about the guests, what they have planned during their stay and who will be staying with them at the property.
Biggest Hurdles in The Short Term Rental Process
Hostmaker’s survey investigated which reasons would most likely stop homeowners wanting to rent out their property on Airbnb or other short term rental platforms. Understandably, the main reasons people are not letting their homes are concerns around damage to their property (70%), people snooping through their belongings (61%) and guests having parties or doing improper things whilst in the house or apartment.
Surprisingly, just 4% of respondents asked had said that there were no hurdles that would prevent them from offering short term lettings.
Concerns also arise around legislation and logistics with 28% not understanding the legislation and tax rules that would be applicable to them as the property owners and one in ten not wanting to coordinate logistics (13%) or multiple bookings and guests (12%).
Short term rental properties can be unpredictable in relation to the number of bookings, income, additional repair and maintenance costs, and general upkeep. Whilst short term rental is inevitably unpredictable, it shouldn’t be a reason for you to be put off.
Flexible Letting Solution That Accommodates All Types of Demand
Managing a short term property also takes lots of time and effort, so you may need to hire a host management service or give up your time in order to ensure the successful running of the homestay property.
It’s important to find a flexible letting solution that accommodates to all types of demand that you may have.
How Can Hostmaker Help?
It isn’t an easy business, however Hostmaker can accommodate all types of demands. Whether you have an Airbnb property and need Airbnb property management services, or you rent long-term to tenants, property management services can be a great help. Keeping you on top of jobs and reducing some of the stress associated with being a London landlord, we can get you on your way to being the best landlord you can be.
Our range of services can be used for primary homes, secondary homes or a collection of homes to ensure your stresses are effectively handled. This means you can focus on all the enjoyable aspects of being a landlord in the lucrative London area.
Being stressed as a landlord no longer needs to be “just the way it is”. With the proper care and diligence, you can avoid some of these most common issues and stresses. Get in touch with us today to see how we can help you.