AirBnB Property Profitability
AirBnB Property Profitability Or lack thereof. There are a huge range of properties that get the AirBnB treatment, small, large, single rooms, whole floors, if you can stay in it, you can AirBnB – within the company’s standard terms and conditions of course.
But is it all worth it? Well, you have to weigh up the options. If you have a house with a spare room, it’s always going to be a financial winner so long as you get paid and declare the income to the inland revenue but is it worth the hassle of having strangers traipsing around your home? It depends on the guests and the amount you charge for the room but largely, it is a judgement call based on your own circumstances. If you happen to live close to an area that gets a lot of visitors, like an airport or tourist centre, you can command a higher price than if you live in the middle of nowhere.
If you have a flat, apartment or house, AirBnB and short let tenancy agreements can have their pros and cons. Long term tenants offer stability, security and tend to look after your property better, after all, it’s their home and they have to live in it. Short term tenants pay a lot more in rent but it’s sporadic, seasonal and prone to more problems than when guests stay longer. But you can stretch the income out a bit by making a few changes, a sofa bed gets an extra guest or two for example.
In short, AirBnB is not a guaranteed money spinner. If you’re renting out a room occasionally just for some extra cash and you’re happy with the inconvenience then there’s not much to think about. If you have a property in a high-value area, you may be able to get a management company to give you a guaranteed rental schedule so it’s probably worth it in that scenario too. However, if you have a fairly ordinary property, long term rental is probably your best bet.