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Massive Revenue Increase for London Holiday Lets

Holiday Let Revenues Rise by 93.25% in Less than a Year

Airbnb is more popular than ever before. 

Bouncing back pretty strongly following the pandemic; their second-quarter revenue almost quadrupled to $1.3 billion from $335 million, which is a 299% increase year over year.

Gross booking value climbed to $13.4 billion, blowing past analysts’ expectations of $11.56 billion.

That’s a 320% increase year over year and a 37% improvement over the second quarter of 2019.

Nights and experiences booked rose 197% year over year to 83.1 million, though they were down 1% from the same period in 2019. Data source.

But what has this meant for holiday let and property owners?

From the table below, we can see that since January this year, homeowner’s revenue has jumped by an impressive 93.25%.

Some impressive stats:

ready to short-let your home

The five best areas in London for Airbnb:

  1. Camden

  • Average Daily Rate: £153
  • Occupancy Rate: 77%
  • Revenue: £2,558

Best precise locations: Hampstead Heath, Kentish Town Road, Camden Town, St Pancras, Goodge Street, Shorts Garden and Clerkenwell Road.

  1. City of London

  • Average Daily Rate: £159
  • Occupancy Rate: 75%
  • Revenue: £2,884

Often 0.7% of all properties are booked in London. Popular locations that perform the best are Fleet Street, Chancery Lane, St Paul’s Cathedral, Fenchurch Street and Spitalfields.

  1. Wandsworth

  • Average Daily Rate: £130
  • Occupancy Rate: 76%
  • Revenue: £1,946

In 2018, Wandsworth was 4% of the overall booked properties in London. The highest performing areas include Battersea Power Station, Nine Elms Lane, Clapham Junction, Wandsworth High Street and Northcote Road.

  1. Westminster

  • Average Daily Rate: £170
  • Occupancy Rate: 73%
  • Revenue: £2,755

Again in 2018, Westminster made up 14% of all properties booked in London. Best performing areas include Warwick and Ecclestone Squares, Vauxhall Bridge, Brompton Road, Soho, Edgware Road and Hyde Park.

  1. Kensington and Chelsea

  • Average Daily Rate: £165
  • Occupancy Rate: 70%
  • Revenue: £2,652

Around 8% of all London bookings, best locations within Chelsea and Kensington include Portobello Road, Pembridge Gardens, Cromwell Road, Sloane Avenue and Kensington Olympia.

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What features can add value to your let?

Earn, earn and earn!

Is your property frequently empty? Do you have a second home that you would like to earn money from? Sign up for our Airbnb Management Service in London now.

We make renting your home easy! With the ability to earn thousands every month, we can help you make the most out of your property without you ever having to lift a finger.

Airbnb Property Management in London offers:

  • Bookings, guest communication and availability management
  • Deposits, insurance and paperwork
  • Check-in and check-out
  • 24/7 monitoring and assistance
  • Guest screening and vetting
  • Airbnb Listing Optimisation
  • Marketing for your properties across various platforms
  • Property management, repairs, replenishments and cleaning

Explore our services or get in touch here.

The Pros and Cons of a Holiday Let Management Company

Holiday Let Management Companies vs DIY Management

Do you have a second home that you vacation to? Is it empty much of the time or hard to maintain or clean – especially if you live away from the area?

Holiday Let Management Companies like us make all these problems go away.

Whilst we know that our clients rate our services as helpful, affordable and beneficial, we know that they won’t work for everybody.

For example, it’s a big decision to decide whether you can manage everything yourself, or if an agency should take over.

So we thought we would break it down for you; what are the limitations of going it alone? Are agencies worth it? Find out below…

The Best Airbnb Management Companies in London

Quick questions:

  • Is holiday letting profitable? During peak season, especially as of late, holiday letting can earn you as much in a week as you would usually earn in a month from regular buy-to-let schemes. Holiday landlords can actually earn up to 30% more providing an annual return of 8% (2% more than buy-to-let investments).
  • How much is a holiday let management? Traditional agencies fees can be around 20-25% including VAT. However, here at Hello Guest, we charge a 12% fee.
  • What do holiday letting agents do? We deal with enquiries, bookings, availability, reviews, complaints, guest communication, check-in and check-out, listing optimisation, property management, cleaning and providing amenities.

see what your property can do

Going it alone

For those just starting out, or wanting to maintain a closer handle on their holiday rental, there are a few advantages. These include:

  • The slight potential for higher earnings: With no agency fee, you get to keep 100% of the rental income. However, agencies often increase the number of bookings so if you do not actively work to promote your property there is the chance of having smaller returns.
  • Ease of entry to the market: With multiple online vacation rental sites that are easy to use, you can upload your property and get it seen by guests instantly. These sites also charge a fee though.
  • Screen guests: You can personally vet all your guests and have the final say of who comes to stay in your second home. However, this can often be time-consuming.
  • Flexibility: You set your own timetable when you want to be at the property yourself with no restrictions. Although agencies like ours offer homeowners complete flexibility and ownership of their homes.
  • Set your own rates: As you’ll be directly in charge you can adapt to the market and offer special deals or discounts if you choose. This can help to secure last-minute bookings – whereas an agent could do this for you, but would need your approval beforehand.

Renting Your Place

Cons

  • No guarantee of bookings: It’s that simple, running it yourself and doing the best you can does not necessarily mean that you can provide yourself with a steady stream of income.
  • It takes a lot of time: For example, holiday rental owners spend on average 9 hours a week marketing their vacation rental as well as managing their bookings. This is not taking into account property inspections, repairs, cleaning, tidying, replenishing, guest communication, check-in and check-out etc. Not to mention the time it will take to the administration work. Essentially it’s like having another full-time job, which can be difficult to keep up with if you have children too. Often DIY holiday let management leads homeowners to work in the evenings, weekends and any extra moment they have.
  • Issues can happen at any point: It could be the middle of the night and your guest might have a problem. You will be required to handle these straight away, so if this is not your only source of income it might be difficult to help. Property management companies here manage all of this for you and are available to deal with complaints or any problems as they arise.
  • It’s impractical: Unless you’re based close to your property, managing it yourself will not be practical – especially if there’s an emergency.
  • Lack of expertise or experience in the sector: Whilst it may sound easy and simple, if you’re a newbie to the holiday letting sector, it can be a steep learning curve. Expect to make mistakes – even costly ones as you find your feet.
  • Extra responsibility: If you hire people to help with the running of your holiday let, such as cleaners, gardeners or a receptionist of sorts, you will be responsible for their contract, working conditions, health and safety, pay and arranging their tax with HMRC.
  • Competition: Airbnb has 6m rentals worldwide. As more and more holiday rental owners join the competition, it can be difficult to stay competitive. Professional rental agencies have better online distribution models as well as more properties in their portfolio – they can offer lower costs, commercial experience and marketing prowess.
  • Marketing expenses: In order to be successful, you will need to market and optimise your property listing through marketing and advertising. This can be a significant outgoing especially if you’re trying to get established.

ready to short-let your home

Pros and cons of a holiday letting agency

If you’re struggling to decide on what to do, it might be worth seeking advice from those who have tried both ways in the past.

A lot of our clients have tried the DIY management approach and now wanting to scale their business even further come to us.

Interestingly enough, we started by letting out our property and have done the DIY model ourselves, through much success and from seeing the main difficulties; we created Hello Guest to help homeowners across the country reap more of the benefits from this lucrative industry.

Leave it all to us – get in touch.

Why You Should Use an Airbnb Agency for Your Rental Property

5 Reasons You Need an Airbnb Agency

Over the last couple of years, the space-sharing or vacation rental market has boomed – especially through sites like Airbnb in cities like London.

However, due to this fast-growing market, property owners especially are looking at the time and effort required to maintain and increase their potential returns.

In order to take advantage of this wave, many owners have turned to Airbnb management agencies like us to keep up with the demand without having to lift a finger.

Co-host with us.

Airbnb Management Service London

What Is an Airbnb Agency?

What you need to know about Airbnb co-hosting:

In short, an Airbnb management service is a company that will manage your lets on your behalf.

The main services we offer include:

Reasons why you need an agency to expand

Homeowners, looking to earn a substantial amount from short-lets will need to treat their property as a business – and that’s where an agency comes in.

An agency will run your home somewhat like a boutique hotel, making sure it’s clean and has all the fresh amenities a guest would expect.

Be guest ready

  1. Money, money, money

In cities like London, for example, the difference between earnings in the long term compared to the short term are astronomical. But property owners do not always have the time to be a full-time host, which means their earnings are capped.

Management companies in reality only charge a small fee in comparison to other traditional estate agents, for example, here at Hello Guest we only charge 12% – and this will include everything you need for successful holiday let management.

Therefore, your costs go down and profits go up.

  1. Outsourcing is so much easier

One common complaint we often hear is “I’m away and cannot manage my property” and whilst that’s a big concern, property management companies dissolve this issue.

If you travel a lot, either for work or pleasure, why not continue to earn an income on the side.

Whilst being away from home means you cannot manage any of your bookings, an Airbnb management agency can certainly help with this.

Our contracts allow you to come and go to your home or property as you please, but having an agency around makes it all that much easier when trying to maximise your income when your home is vacant.

Plus, it might even give you the opportunity to get away and enjoy a life you might have always dreamed of.

cleaning, restocking household goods, checking in guests

  1. Get your hours back

For many, the biggest turn-off of becoming an Airbnb host is the time you have to commit.

Constantly checking in on guests, replying to them, booking and scheduling can easily turn into a second job.

Some homeowners can even spend an extra 40 hours a month renting out their homes. This can be demanding and a big sacrifice for those who value their family time.

Airbnb management companies again make this easier – they exist to take over every stage of your booking process and manage it all for you, which will require very little input from you.

This means you can put your feet up, watch the reservations roll in and receive a very nice lump sum payment at the end of every month.

Sometimes, it’s not about working harder, but smarter.

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  1. It keeps your property safe and secure

Property security is a big concern. If you are going away, leaving your home unattended is worrying and some insurance companies have rules around this.

With consistent visitors to your property, it will eliminate the threat of an empty residence, which is easy to target.

On top of this, Airbnb management companies also keep your home secure from any guest damage.

By vetting guests beforehand, taking deposits and not allowing short stays or parties, you can trust that your home remains protected and that someone is there always looking out for it.

complete property management

  1. You get professional marketing help

Like we said above, seeing success from holiday rentals requires treating your home like a business.

So, when you use property management services, you are also introducing the best marketing strategies your property needs to increase visitors.

Property management companies like ours, optimise your listing, take professional photos and advertise your product.

We’re also super responsive to guests, which helps us to secure bookings faster.

This is why we’re so useful because we provide you with all the help you need to make sure your home is in the right spot to maximise your income.

To enquire about our services, get in touch here.

How Can I Maximise My Earnings on Airbnb?

Five Ways to Maximize your Earnings on Airbnb

Is Airbnb profitable for hosts in the UK? The truth is that short-term lets can earn you thousands every year. 

Especially if your service is managed and executed correctly.

On average, Airbnb hosts can make £600+ a month.

Below are some major considerations that will factor into your Airbnb profit, and remember, running an Airbnb business can be time-consuming, so make sure to set it up correctly to guarantee and ensure consistent profitability.

For any help increasing your Airbnb earnings – just ask us, we’ve done it time and time again and can help you do the same.

is your home ready to rent

Is your home up to scratch?

Airbnb is the new generation hotel – and whilst trends come and go, there are a few staples that we as guests expect when we stay away.

It’s fair to say that we all expect the basic luxuries:

  • Clean, spotless  apartment or home
  • Fresh linen / no hairs or blocked drains
  • A fresh lick of paint on walls that look a bit tired
  • Ironed sheets and clean towels

It’s important to remember that Airbnb guests do not want to be reminded that people live in the property – whilst it may be your home when renting it out, you need to make sure that traces of your life are not hanging around.

airbnb home management

Hire professionals

In our opinion, one way to increase your earnings and turn your home into a profitable business is by hiring an Airbnb Management Company.

First and foremost, you will begin to treat your home, holiday cottage or second property as a business – and one that is managed well.

Airbnb management companies will work tirelessly to market your home, optimise your listing and of course, care for your guests every step of the way.

Why Airbnb management companies work to increase your profit:

  • They optimise your listing
  • They manage your booking calendar and schedule
  • They greet and check out guests
  • They vet guests and take security deposits
  • They professionally clean your home between stays
  • They supply hotel-like toiletries and fresh linen
  • And so much more…

See our property let management services here.

rent your home and earn more

Bad photos can cost you money

Another simple way to increase your revenue is by keeping your property spotless and ensuring it looks inviting.

Again, property management companies can help to optimise your listing, which includes taking new, professional photographs that make the property appear lighter, brighter and the ideal space to get away to.

By uploading plenty of photos, you will be showing the customer everything they need to know before their stay.

Research shows that 10 or more photos will increase the transaction price and reduce the time it takes for a buyer to convert.

Plus, if you integrate some nice, unique touches into your home, you can increase the chance that the customer revisits.

property-let-management-service-cheap

Extra and easy touches

You know what it’s like when you go away and all the amenities that make a difference. After all, it’s the little things in life that make the most difference.

Simple tips include:

  • Fold towels and place them at the foot of the bed
  • Leave guests tea and coffee
  • Any homemade or local products
  • A little jar of sweets or chocolates

More ways you can increase revenue on Airbnb

  1. Upload the best version of your listing
  2. Gain plenty of reviews
  3. Tailor your amenities to your particular audience
  4. Offer more / add-ons
  5. Price appropriately
  6. Expand your availability
  7. Plan for the future

If you’re interested in hiring an expert Airbnb Management Company, get in touch with us here.

How to Protect your Property Against Parties

The majority of short let guests are good guests and they are very respectful of the property. However, there is a risk some guests may intend to hold a party during their stay.

Its previously been a rare occurrence but with COVID restrictions limiting places to go out, this has increased the risk of using short let accommodation and Airbnb’s as party venues. In fact, Airbnb has also become aware of this risk and as a temporary measure banned any parties until the end of the summer. Continue reading “How to Protect your Property Against Parties”

A Great Time for Hosts to Benefit from UK’s Staycation Boom

We all know how the COVID pandemic has had a dramatic impact on the travel industry and limited our holiday plans. As a result, people are rediscovering the UK and booking staycations instead of traveling abroad for their holidays. This is good news for hosts who have properties available to rent especially in popular UK holiday hotspots, coastal and country locations. Continue reading “A Great Time for Hosts to Benefit from UK’s Staycation Boom”

The Pandemic’s Impact on the Short Letting and Rental Market

The Coronavirus pandemic has had a major impact on the property rental market from short letting to medium term and long term rental.

Short lets or holiday letting have been the most affected with domestic and international travel severely limited with lockdowns and government restrictions in place. As a result, there has been a general shift to longer average stays or medium-term rentals if people need a place to stay. The biggest beneficiary has been a boost for ‘staycation’ locations across the UK. Continue reading “The Pandemic’s Impact on the Short Letting and Rental Market”

6 Welcome Gift Ideas for Guests

Chocolates

Everyone running short-term lets wants guests to feel special to encourage repeat visits. Gifts are a way to do that, but of course you don’t want to go over the top and spend all your profit. They are also a great way to improve guest review scores, which are critical to driving your property’s listing higher in the search results on websites such as Airbnb. Continue reading “6 Welcome Gift Ideas for Guests”

Insurance Cover for Short Term Letting

Airbnb Insurance Policy

Short term letting has become increasingly popular, especially with the birth of platforms such as Airbnb that allow people to easily market their properties. This is fantastic but it also poses some challenges for necessary auxiliary products and services that come with property ownership, such as insurance. At the heart of the matter is short letting of a residential space no longer neatly falls under either purely residential or commercial classification as it is a mix of both. Continue reading “Insurance Cover for Short Term Letting”

Should I rent out my home on a short term let basis?

If you have a property, a flat, house or any shared space in London you will already know how valuable space is in the capital. The demand for letting on a short term basis has significantly increased from both people visiting London for tourism/leisure and also for work or to visits friends. This is projected to continue growing as London remains a major attraction and place to visit. Continue reading “Should I rent out my home on a short term let basis?”

Hello! The guest is calling this summer…

Let Out Your Home

Hello! The guest is calling this summer..

In the light of the recently introduced ‘tax break’ by the UK Government/UK Chancellor George Osborne on March 16th 201, micro-entrepreneurism in the Airbnb domain is now in full swing. This allowance in essence means Airbnb hosts in the UK will now be able to earn 1000£ tax free which means more income for the cash strapped citizens who own homes that have the potential to be let out. Continue reading “Hello! The guest is calling this summer…”

Airbnb London Management & Information for Renting

Airbnb management and renting your London property have hugely evolved and expanded very quickly over only the last few years proving to be a great source of additional income and making more space available in London for rent. As well as facing a shortage in short term space to let, London is also a top touristic destination, so the more we can utilize unused space the better. Continue reading “Airbnb London Management & Information for Renting”

Welcoming guests – Airbnb Management Service London

How do you make your Airbnb guests stay special and make them feel welcome? There are ofcourse things that can be offered over and above what guests expect but we believe ensuring the basics are right goes a long way to achieving a high level of guest satisfaction and 5* reviews. Here we will point out some of the important items to make a good Airbnb management service London as well as provide some ideas how you can go beyond that to offer an excellent experience. Continue reading “Welcoming guests – Airbnb Management Service London”

Some Things to Remember for Airbnb Management London

Managing and renting a property nowadays costs a lot of money but did you know your space can also be an opportunity to earn money? More and more people in London are renting out their places to guests coming for short stays. Airbnb management London helps lots of people to rent their houses while they are away. The Airbnb platform offers a clever way to connects hosts with available space to guests from around the world looking for a place to stay. It does mean opening up your home to strangers so there are some good practices and rules that can help ensure your Airbnb management London experience goes well. Continue reading “Some Things to Remember for Airbnb Management London”

Have you seen the new Airbnb TV ad?

Its good to see Airbnb advertising and promoting the service

If your interested you can also win a stay on a Floating Blue House on the River Thames (see here) although they advise against diving out of the living room window for a swim in the Thames..

Should I rent my property on sites like Airbnb?

Short stay rental sites such as Airbnb, Housetrip, Wimdu & others offer travellers an alternative to staying in hotels. They are online market places connecting private landlords with people looking for a place to stay typically for short periods or weekend visits. This includes a wide range of places to stay from just a room, studio, apartment or even a entire house. But this isn’t exclusively for tourists as many regular business travellers have also been attracted by the benefits over staying in hotels. Continue reading “Should I rent my property on sites like Airbnb?”

Hello Hosts & Guests!

Welcome to our blog!

In addition to our short stay property management services in London we thought it was useful to launch our new blog to provide useful information about short stay rentals both for hosts and guests. Its a pretty exciting area evolving rapidly as several sites such as Airbnb, Housetrip, Wimdu, etc are leading the way in providing market places for anyone with space to make it available for people to rent for short periods. This is great news as it offers travellers an alternative and more personable experience compared to staying in hotels and a great way for renters to earn some extra income!