To make some extra money from your home, you can let out a room or your entire property. It is something you can do on a part-time or full-time basis. A lot of people do when they go on holiday and they treat it like house-sitting but they get paid for it!
You could make over £10,000 a year if you do it right, even on a part-time basis!
If you live in an area that gets visitors or gets a lot of people passing through, i.e. close to a train station, on a good transport link or an attractive area or close to tourist attractions or leisure parks etc, then there is probably a good market in your area for short-term lets.
NOTE: You can earn up to £7,500 per year, tax-free, by letting out furnished accommodation, i.e. a room or a house, this is via the Government’s Rent a Room scheme. This applies to short-term lets, see:https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme. Declare it if you earn more and you can then also claim back your expenses if you have to declare it.
Check out your area in any case to see what is about.
Obviously, the amount you can charge varies according to your property and location.
Also, look at other sites to let a room;
1. SpareRoom,
2. MondaytoFriday or
3. Gumtree and
4. Theatre Digs Booker (TDB); this is a good site for the cast and crew of theatre productions.
Some sites charge for an advert so check first.
ADVERTISING
For you advert, make sure you take very good photos of your house, photograph it as if you were selling your property, i.e make it look really attractive. Make sure you keep it like this for when people come to stay so that you get good reviews. Good reviews will help promote your property.
Note the positives and negatives of the property i.e access issues and/ location so that people know exactly what they are getting.
Think of the questions people may have and provide good answers, ie. are towels and linen included, can pets i.e. dogs stay? types of food/ snacks available etc.
Also, specify you do not allow certain groups, i.e. stag or hen parties, or people arriving back in the early hours! You would also be surprised how many people turn up with an extra person, so be clear from the start.
INSURANCE
Check your home insurance to see if you are covered. It is worth speaking with your insurer and inform them of what exactly you are planning.
They may require you place an addition to your policy and may charge a fee for an extension of your policy. If they won’t extend your cover then seek a specialist broker to cover you.
Remember, that Airbnb is not an insurance policy. The Airbnb ‘Host Damage Protection’ may be sufficient but check it first.
MORTAGE
Check the terms of your mortgage.
Contact your lender to inform them exactly what you plan to do.
It will depend on your mortgage and your circumstances.
If you are a leaseholder, then check with your leaseholder as many do not allow renting.
Note: Housing association properties are unlikely to allow you to let, so check first and in all cases obtain permission.
PRICE
Check your local area for similar accommodation and set a realistic and competitive price. Be flexible too, and set the prices based upon supply and demand, i.e. in holiday times, you may be able to charge more!
Also, Airbnb lets you charge a security deposit, you should use this facility.
CHECK OUT YOUR GUESTS
You should check out your guests as you obviously want to avoid fraudsters and avoid any criminal activity. When they contact you, ask a few questions, eg. arrive and depart times/ dates, their plans for the stay etc. and of course, you can look them up on social-media, i.e Facebook.
Airbnb allows guests to either instantly book or they can reserve and you can approve it. But, be aware that instant books are more popular but you can’t check your guests first!
So something to think about when you first start renting on Airbnb.
HOST(ESS) WITH THE MOSTEST!
Welcome your guests in a welcoming and friendly way, offer help with their bags and throw in some extras, i.e;
- A welcome snack, drinks, new soap, toilet roll, books to read etc
- If possible, be flexible with check-in and out times!
- Maybe give them access to a bike to use in their stay
- Produce a local guide book that details the area like places to shop and things to do and see etc.
- Do not forget the WIFI password !
- Oh and make sure you have spare keys cut!
CANCELLATION POLICY
Airbnb gives you a choice of cancellation policies to choose from:
- Flexible,
- Moderate and,
- Strict.
Check out the details as they do vary in what the guests can and cannot do, ie. refunds vary in each case so check first.
See Airbnb for details as there are a few more on offer.
LAWS
Renting on Airbnb is effectively makes you a resident landlord, check the details in this UK Government guide.
All hosts must apply for a short-term license before they accept bookings and/or having guests stay.
Check your responsibilities, such as:
- Remember, the Fire Safety law applies to letting property, even on a short term basis, so ensure that fire exits are clearly marked and guests are aware as you are responsible for ensuring guests are protected from fire in your home.
- Fit and test smoke alarms and carbon monoxide alarms
- Keep the property safe and free from hazards (i.e. uneven stairs etc)
- Ensure that all gas and electrical equipment is safely installed and maintained
- Ensure you have an up to date Energy Performance Certificate.
- Undertake, a fire-risk assessment to make sure you are covered. You can do a fire safety check yourself or you arrange a free one from your Local Fire and Rescue service, check here: Safe from Fire.
