In our experience being short-let landlords and professional Airbnb managers, we have seen how holiday rentals can be much more lucrative than traditional long-lets.
That said, investors and landlords should consider that the operating costs are likely higher than they would if they were renting and that monthly returns can vary. However, part of our Airbnb management service looks at scaling your business to mitigate risks, cover your expenses and leave you with a substantial passive profit.
Going alone in this business can make it difficult to succeed, where success might be much more gradual or slower than you expected, leading you to put in more time and effort for poor returns. Let’s change that.
Compared to the stable income in the long-term rental business, your income as an Airbnb host (especially if you’re new or inexperienced with the logistics of running an Airbnb business) is likely to be erratic.
For example, landlords who rent properties to long-term tenants can be confident in the amount of money they will earn at the end of each month or year, regardless of the state of the economy. However, many new hosts can relate that it’s not easy to predict the exact income every month as it can vary in peak periods.
As the holiday let market is usually seasonal, entrusting a property management company like us will see us apply effective strategies in dry seasons.
When onboarding with us, we’ll assess your current earnings and your property’s value on holiday-let sites. From here, we will set a turnover goal for the year and work our magic to achieve our KPIs.
Owning a portfolio of Airbnb rentals is a smart way to boost your passive income. We know that holiday-let properties, in particular, can be a lucrative real estate investment strategy. But we also know success doesn’t just happen and certainly doesn’t happen overnight.
Investing in real estate is perfect for landlords and property owners who want to make their money do more for them. And this is because acquiring property for a profit with the intention to holiday let can earn you more.
What’s even better for property investors is that short-term rentals are passive in nature, which means you can earn a substantial income from your property, even if you’re not around.
According to statistics from AirDNA, the average daily rate for Airbnb rentals in London is £187.97. So with an occupancy rate of 75%, you’d likely be booked at least 274 days a year, meaning it’s possible to rake in £51,503.78 in gross revenue.
As the average rent in London is £935 in Q4 of 2022, you’d likely make £40,283 more through short-letting than traditional renting.
Regarding traditional renting, it’s much riskier when it comes to relying on one tenant.
Everything can be fine until that tenant is no longer financially stable or vanishes in the night, which will take a hit on your immediate income, which can be hard to replace instantly.
With holiday letting, it’s just not like that – instead, there’s a diversified portfolio of tenants who pay before they arrive.
Setting up any business involves a set-up cost – and with Airbnb, there are apparent reoccurring costs like cleaning and maintenance you won’t be able to avoid.
Whilst certain operating costs are non-negotiable, they are tax deductible.
Landlords and property owners can claim back on the following:
Other Airbnb management services in the capital and beyond usually take a commission fee between 13-20%. HelloGuest only charges 12%. Is now a good time to switch? Learn more about our management fees.
Toby’s main role is managing clients with large holiday-let portfolios, ensuring they hit KPIs and maximise their monthly turnover.
Being a natural extrovert and a go-getter, Veronica is a great communicator and is the face behind HelloGuest, which means she’ll be there to help you onboard or switch.