Whilst letting your home on sites like Airbnb can be a profitable investment, landlords and property owners often underestimate all the others costs involved.
As property letters ourselves, here are some of the expenses you might not see coming. Because short-letting your home is not as simple as sitting back and watching your income grow. But it can be.
Please enquire about our Airbnb management services and get the most out of renting out your home.
Two types of costs
As a property owner or landlord, you might already be aware of certain costs that come with the title. For us, we’ve broken it down to two types of expenses; the ones you see coming and the kind that just come out of nowhere.
You have mandatory costs
These are things like a Gas Safety Certificate (around £100), which, if you wish to rent a room in your property, will be a legal requirement to have an annual gas safety inspection.
Certain cities have regulations on whether you might need a permit or a license to short-let your property. You can see Airbnb’s details on UK short-term letting here.
Other mandatory costs will involve:
- EPC certificate (around £36)
- Smoke and Carbon Monoxide Alarms
- Potential legal fees
Then, you have the circumstantial costs
This can include things like property maintenance. For your home to earn up to its highest potential, you will need to cover maintenance costs like decorating, updating fixtures and making sure everything is in a good, usable condition.
And as property problems often happen spontaneously, you’ll likely face a call-out fee for emergencies too.
Next, for your Airbnb let to be successful, you will need to ensure a high standard of cleaning, which also comes at a cost. Not to mention the cost of replenishing essentials like toiletries.
Lastly, there may be key exchange costs.
Most Airbnb hosts do not live close to their rental property or are not always available to exchange keys – and leaving the key under the matt is not an option.
Some hosts, therefore, turn to lockboxes and allow guests a self-check-in process, which again opens up your home to risks.
The solution? Again, an Airbnb Management Service will vet your guests, check them in and out, so you can continue to do whatever you do best.
Not only will this keep your property safe and secure, but it saves you any additional costs.
What most homeowners do not consider
Another cost factor, which some landlords or homeowners may not initially think of, are downtimes.
Unless you’re an expert in property listing optimisation, likely, your property will not always be fully booked, which may result in the property being vacant for extended periods.
Not only will you continue to cover the costs, but not be able to profit from your empty home or room either.
If you want your property to receive multiple bookings and be full 90% of the time, it is often best to opt for an Airbnb Management Company that can manage this for you.
Not only do their services cover a lot of the costs mentioned above, but they can help to ensure your home remains profitable.
Do you see how quickly everything adds up?
The costs of short-letting your home can quickly add up if you go it alone. This takes money out of your profit and will rely on you being fully booked to earn a substantial income at all.
Short-letting on Airbnb is where we started, and discovering all these costs was new to us too. As working professionals, too, managing a property let felt like a second job.
That’s why we started Hello Guest, to make it easier for people exactly like us, who wanted to earn a second income without jumping through lots of hoops.
So let us help make it easy for you. Cut out all the extra costs and go with our Airbnb Management Services, which include listing optimisation, cleaning, property maintenance, toiletry replenishment and much, much more.
Pay just one fee (from 12%), sit back and relax. We’ll do the rest.