Any AirBnB owners here?
Discussion
Bit of a thread resurrection here.
Sorry if there are more up to date threads running on this, but Pistonheads search is pretty rubbish.
We are in the process of moving home to what will become our retirement property. A couple of properties which have come up are eminently suitable for using as a self catering letting business. These are self contained areas adjacent to the main house, small kitchenette, one bedroom, shower room etc, separate entrance door.
Our target area is in the North Eastern end of the Yorkshire Dales and checking the accommodation levels in the locality is showing a very good level of bookings. I appreciate we are in strange times and I expect there has been a massive rush to book something from April onwards. Similar properties seem to be letting at 50 - 75 a night. Plus a service charge.
What is very difficult to assess is how profitable an exercise this is, there is obviously a premium to buy the properties, lets say this is approx 25k.
How much cut does AirBnB take and whats the situation with the service charge?, why is it just not a rate per night?
Does AirBnB make more sense than using the older style holiday cottage letting companies.
Sorry if there are more up to date threads running on this, but Pistonheads search is pretty rubbish.
We are in the process of moving home to what will become our retirement property. A couple of properties which have come up are eminently suitable for using as a self catering letting business. These are self contained areas adjacent to the main house, small kitchenette, one bedroom, shower room etc, separate entrance door.
Our target area is in the North Eastern end of the Yorkshire Dales and checking the accommodation levels in the locality is showing a very good level of bookings. I appreciate we are in strange times and I expect there has been a massive rush to book something from April onwards. Similar properties seem to be letting at 50 - 75 a night. Plus a service charge.
What is very difficult to assess is how profitable an exercise this is, there is obviously a premium to buy the properties, lets say this is approx 25k.
How much cut does AirBnB take and whats the situation with the service charge?, why is it just not a rate per night?
Does AirBnB make more sense than using the older style holiday cottage letting companies.
Just to give an example of our costs etc for the flat we AirBNB in Cromer.
For 3 nights in May @ £75 per night
£75 x 3 = £225
Cleaning fee £50 (This covers our cleaner who also washes, dries bedding, towels etc)
Guest service charge £46.58
Guest pays £321.58
Host gets:
£225 + £50
Minus service fee of 3% = £9.90
Total £265.10
We are probably 70-80% booked from mid April to September
For 3 nights in May @ £75 per night
£75 x 3 = £225
Cleaning fee £50 (This covers our cleaner who also washes, dries bedding, towels etc)
Guest service charge £46.58
Guest pays £321.58
Host gets:
£225 + £50
Minus service fee of 3% = £9.90
Total £265.10
We are probably 70-80% booked from mid April to September
Ok that’s good data thanks.
So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
velocemitch said:
Ok that’s good data thanks.
So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
Yes service fee is AirBNB's cut plus they get 3% cut from the Host which is not bad for just hosting a (very successful) website So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
We run ours as a business and it's rated as zero business rates.
We have to pay a share of the building insurance (3 flats share the Leasehold) and we have contents insurance I think (wife sorts that out) but it's not expensive.
You could try it for a year to see how it goes.
It's very flexible and easy to manage through the App.
GreatGranny said:
velocemitch said:
Ok that’s good data thanks.
So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
Yes service fee is AirBNB's cut plus they get 3% cut from the Host which is not bad for just hosting a (very successful) website So the guest service fee is, in effect, the cut airBnB take. I did think that might be the case.
I need to get my head around other costs such as council tax/business rates. If it’s attached to our own house, but self contained I don’t know how it works. Likewise insurance, presumably it would need a separate policy covering PI.
All overheads to consider.
We run ours as a business and it's rated as zero business rates.
We have to pay a share of the building insurance (3 flats share the Leasehold) and we have contents insurance I think (wife sorts that out) but it's not expensive.
You could try it for a year to see how it goes.
It's very flexible and easy to manage through the App.
Fingers and toes crossed!.
Good timing thread bump.
Just bought a cottage the village over (river frontage, pubs in the village, on the Cleveland Way etc) and look to be getting it ready for AirBnB'ing mid April.
Any advise is always good to have.
I figure on aligning with the local food stops and rustic bike shop that has a good social media presence etc - see if we can turn up the charm in the marketing...
Just bought a cottage the village over (river frontage, pubs in the village, on the Cleveland Way etc) and look to be getting it ready for AirBnB'ing mid April.
Any advise is always good to have.
I figure on aligning with the local food stops and rustic bike shop that has a good social media presence etc - see if we can turn up the charm in the marketing...
We have been using Airbnb to rent out our properties both here and in France for the last few years, it has been very successful, much better than using one of the traditional agencies, BUT it involves much more effort in taking bookings, keeping track of things, and Airbnb can be more than a little odd sometimes, especially if something goes wrong with a reservation, the ''customer service'' for hosts is pot luck, but on balance, its worth the hassle for us.
If anyone has any specific questions, feel free to send a PM.
If anyone has any specific questions, feel free to send a PM.
velocemitch said:
Bit of a thread resurrection here.
Sorry if there are more up to date threads running on this, but Pistonheads search is pretty rubbish.
We are in the process of moving home to what will become our retirement property. A couple of properties which have come up are eminently suitable for using as a self catering letting business. These are self contained areas adjacent to the main house, small kitchenette, one bedroom, shower room etc, separate entrance door.
Two people I know do holiday lets with this format - one bed annexe - and he's full all year with, as far as I can see, far lower costs than my holiday cottage. The other converted above his garage annexe into a 1 bed let and he's busy with a mix of holiday and business lettings of a few weeks at a time. So as a format I'd say it's likely to have the best cost/return/occupancy ratios. Sorry if there are more up to date threads running on this, but Pistonheads search is pretty rubbish.
We are in the process of moving home to what will become our retirement property. A couple of properties which have come up are eminently suitable for using as a self catering letting business. These are self contained areas adjacent to the main house, small kitchenette, one bedroom, shower room etc, separate entrance door.
Whether you'd pay business rates on an annexe I don't know, or it may be easier to claim a part of your CT on your tax return.
Have a look at what's available to let locally. You'll get an idea of the standard, the freebies people expect and the rates of occupancy. A good cleaner includes presentation and can be hard to find. Some companies specialise but remember, 2 short breaks a week (usually £@75% of a week) will cost you twice the cleaning etc.
Agree with the cleaner.
There is a few local firms which charge an absolute fortune, £120 for a 2 bed flat plus cost of washing linen, towels etc..
Ours charges half that. She works on her own which can cause issues if she's ill or unavailable.
I've had to drive 2 hours a few times when she's not been able to do it but overall it's worked out ok.
We rent 3 night minimum and are pretty competitive with prices.
Ours is simply decorated, all neutral colours.
Well kitted out with decent TV, WiFi, Echo dot, dishwasher etc..
We supply towels, bedding, Tee towels, hand wash, shampoo, shower gel, tea coffee etc..
We've also got table football which seems to go down well with guests.
Response rate to enquiries is very important also as is good communications in general with guests.
Take decent photos, list all facilities. Mention distance to places but some guests will still message numerous times to ask stuff.
Our place is 2 minutes from the pier, beach and town, this can be seen from the location map but we still get messages asking how far it is
We are pretty full May, June, July and August and about 1/3 full September. We block some dates so we can actually go there ourselves.
Feel free to ask any questions.
There is a few local firms which charge an absolute fortune, £120 for a 2 bed flat plus cost of washing linen, towels etc..
Ours charges half that. She works on her own which can cause issues if she's ill or unavailable.
I've had to drive 2 hours a few times when she's not been able to do it but overall it's worked out ok.
We rent 3 night minimum and are pretty competitive with prices.
Ours is simply decorated, all neutral colours.
Well kitted out with decent TV, WiFi, Echo dot, dishwasher etc..
We supply towels, bedding, Tee towels, hand wash, shampoo, shower gel, tea coffee etc..
We've also got table football which seems to go down well with guests.
Response rate to enquiries is very important also as is good communications in general with guests.
Take decent photos, list all facilities. Mention distance to places but some guests will still message numerous times to ask stuff.
Our place is 2 minutes from the pier, beach and town, this can be seen from the location map but we still get messages asking how far it is
We are pretty full May, June, July and August and about 1/3 full September. We block some dates so we can actually go there ourselves.
Feel free to ask any questions.
Morning,
Another Airbnber here, although more as a business user than a home host.
We have a total of 4, soon to be 5 properties on air bnb, but all of them also have their own book direct site.
We have aimed at the top end of the market, and as such the rents are higher but the customer service also has to be higher, a lot of admin tracking bookings, syncing calendars, talking to guests etc, then of course the hands on stuff like the cottage prep, stock control etc.
But it's a great platform, for 2 of our properties at least 60% of bookings come through Airbnb, as mentioned above though, support can be a little hit and miss sometimes.
Another Airbnber here, although more as a business user than a home host.
We have a total of 4, soon to be 5 properties on air bnb, but all of them also have their own book direct site.
We have aimed at the top end of the market, and as such the rents are higher but the customer service also has to be higher, a lot of admin tracking bookings, syncing calendars, talking to guests etc, then of course the hands on stuff like the cottage prep, stock control etc.
But it's a great platform, for 2 of our properties at least 60% of bookings come through Airbnb, as mentioned above though, support can be a little hit and miss sometimes.
Yet another thread resurrection, its the top hit on Google.
Idly contemplating airbnb, we may relocate to the other end of the country for work and would keep the London flat as a base for keeping contact with friends and family here. We'd expect to pay council tax and utilities etc, plus the annual tax return on the income. The intent would be a couple of weekends per month to break even at first and take it from there.
Main questions are
1. Other rates and dues?
2. Cleaning and management from afar, especially ad hoc as any professional cleaner would have to bend to the bookings schedule. Do you use an agency, individual, what?
3. Key drop etc. How do you get around this?
Its mainly the remote servicing and other people's fingers in our pockets that we want to know about.
Idly contemplating airbnb, we may relocate to the other end of the country for work and would keep the London flat as a base for keeping contact with friends and family here. We'd expect to pay council tax and utilities etc, plus the annual tax return on the income. The intent would be a couple of weekends per month to break even at first and take it from there.
Main questions are
1. Other rates and dues?
2. Cleaning and management from afar, especially ad hoc as any professional cleaner would have to bend to the bookings schedule. Do you use an agency, individual, what?
3. Key drop etc. How do you get around this?
Its mainly the remote servicing and other people's fingers in our pockets that we want to know about.
2gins said:
Idly contemplating airbnb, we may relocate to the other end of the country for work and would keep the London flat as a base for keeping contact with friends and family here. We'd expect to pay council tax and utilities etc, plus the annual tax return on the income. The intent would be a couple of weekends per month to break even at first and take it from there.
Main questions are
1. Other rates and dues?
2. Cleaning and management from afar, especially ad hoc as any professional cleaner would have to bend to the bookings schedule. Do you use an agency, individual, what?
3. Key drop etc. How do you get around this?
Its mainly the remote servicing and other people's fingers in our pockets that we want to know about.
I've a friend that has rented out a few of his City based buy to lets in Glasgow and Edinburgh via airbnb for a few years now, his thoughts:Main questions are
1. Other rates and dues?
2. Cleaning and management from afar, especially ad hoc as any professional cleaner would have to bend to the bookings schedule. Do you use an agency, individual, what?
3. Key drop etc. How do you get around this?
Its mainly the remote servicing and other people's fingers in our pockets that we want to know about.
- Uses the same one small firm that specialises in airbnb turnovers to clean and prep inbetween stays, they handle everything and there seems to be a few around now.
- He uses one of these key safes with pinpad bolted to the wall outside, so that renters, cleaners etc can all use the same keys without anyone having to meet to exchange.
- He specifies a minimum 3 night stay to try and weed out those that are looking for a 1 or 2 night party pad, the longer min. stay changes the potential demographic of renter slightly. Also assists with costs as a higher number of turnovers tends to lead to higher running and maintenance costs.
- He hates renting to Americans (sweeping generalisation I know), but in his words they expect the same level of service as in a hotel and are more demanding than any other nationality, and will contact you constantly using you as a concierge service from everything to "can you organise a taxi to pick us up from the airport" to "my flight has been delayed so I'll need to check out 2hrs late" when the property needs cleaning prior to the next guests arriving.
Unpopular opinion but we looked at this and went with Sykes for a couple of holiday properties we let out, they get a bad rap but negotiated ok on fees and the best advantage they gave us was that anybody booking has to pay 30% on reservation and the full balance 8 weeks in advance. So guests tend to be fully committed.
When the tv was full of smug idiots last summer suggesting they’d booked somewhere in Norfolk on Airbnb but we’re hoping that covid would permit international travel to Turkey, and if so they’d just cancel their booking a few days before....... it cemented our decision to go with Sykes.
What cancellation terms do Airbnb offer? What happens if you get a cancellation 24 or 48 hours prior?
Well - since 'opening' 1st May last year, I'd be surprised if we've totalled 20days empty.
At the turn of the year we had no bookings for January or February etc, but slowly but surely they've been bookings continually.
Lots of good write-ups, and appreciating the effort and amount of touches we made to make the stays comfortable and with things to do. (we have made a floor to ceiling laminated map of the area for guests to write notes, walks on for example)
It does take effort, and ours if 4 miles away. We have had in the early days no end of problems with the Hive heating so up and down to it. And I just remembered - the weather will change soon adding lawn cutting to my chores again.
I would not want it remote / far away - or would simply wash my hands of it all.
Biggest PITA are the first timers. Some dont use the app and the instructions etc, and some (as above) think it is a hotel so leave the bins full etc.
All in all . Its been fine and made a few quid. But effort.
At the turn of the year we had no bookings for January or February etc, but slowly but surely they've been bookings continually.
Lots of good write-ups, and appreciating the effort and amount of touches we made to make the stays comfortable and with things to do. (we have made a floor to ceiling laminated map of the area for guests to write notes, walks on for example)
It does take effort, and ours if 4 miles away. We have had in the early days no end of problems with the Hive heating so up and down to it. And I just remembered - the weather will change soon adding lawn cutting to my chores again.
I would not want it remote / far away - or would simply wash my hands of it all.
Biggest PITA are the first timers. Some dont use the app and the instructions etc, and some (as above) think it is a hotel so leave the bins full etc.
All in all . Its been fine and made a few quid. But effort.
bennno said:
Unpopular opinion but we looked at this and went with Sykes for a couple of holiday properties we let out, they get a bad rap but negotiated ok on fees and the best advantage they gave us was that anybody booking has to pay 30% on reservation and the full balance 8 weeks in advance. So guests tend to be fully committed.
If you don't mine me asking, how much do Sykes charge? Website and owner's download don't say. Re other comments, yes, bins and getting a good, reliable cleaner are the biggest issues. And if a TV, fridge or whatever breaks, it needs replacing immediately.
Sticks. said:
bennno said:
Unpopular opinion but we looked at this and went with Sykes for a couple of holiday properties we let out, they get a bad rap but negotiated ok on fees and the best advantage they gave us was that anybody booking has to pay 30% on reservation and the full balance 8 weeks in advance. So guests tend to be fully committed.
If you don't mine me asking, how much do Sykes charge? Website and owner's download don't say. Re other comments, yes, bins and getting a good, reliable cleaner are the biggest issues. And if a TV, fridge or whatever breaks, it needs replacing immediately.
When we went live last summer we sold 16 weeks within about 2 hours of the property going live on their website.
Sykes professionally photograph your property, create advert, you just need to be careful to set rates where you want them and not give them control over discounting etc. Our 3 bed property is already fully booked from start of Feb to late October with 30% deposits taken, it was only empty in Jan as we’d been solid since June, including over Christmas and new year and we wanted some time to refurbish / spruce it up.
bennno said:
Between 18 and 23%, depends on how much or how little you want to use it versus have them rent it out, however whilst their fee is quite high airbnb do lump a reasonably large charge on top of the booking so it’s all swings and roundabouts if you work back from customer price.
When we went live last summer we sold 16 weeks within about 2 hours of the property going live on their website.
Sykes professionally photograph your property, create advert, you just need to be careful to set rates where you want them and not give them control over discounting etc. Our 3 bed property is already fully booked from start of Feb to late October with 30% deposits taken, it was only empty in Jan as we’d been solid since June, including over Christmas and new year and we wanted some time to refurbish / spruce it up.
Thanks, that's useful. That's a really high and fast occupancy rate. Must be very nice! Commission compares to the 20% + VAT I started at. I stopped doing Jan-Feb a while back, for the same, time to have stuff done/refreshed but a £500 gas bill one March, probably nearer £700 now, meant it wasn't worth it. When we went live last summer we sold 16 weeks within about 2 hours of the property going live on their website.
Sykes professionally photograph your property, create advert, you just need to be careful to set rates where you want them and not give them control over discounting etc. Our 3 bed property is already fully booked from start of Feb to late October with 30% deposits taken, it was only empty in Jan as we’d been solid since June, including over Christmas and new year and we wanted some time to refurbish / spruce it up.
bennno said:
Between 18 and 23%, depends on how much or how little you want to use it versus have them rent it out, however whilst their fee is quite high airbnb do lump a reasonably large charge on top of the booking so it’s all swings and roundabouts if you work back from customer price.
When we went live last summer we sold 16 weeks within about 2 hours of the property going live on their website.
Sykes professionally photograph your property, create advert, you just need to be careful to set rates where you want them and not give them control over discounting etc. Our 3 bed property is already fully booked from start of Feb to late October with 30% deposits taken, it was only empty in Jan as we’d been solid since June, including over Christmas and new year and we wanted some time to refurbish / spruce it up.
AirBnB state 3% paid by the host, and 14% paid by the guest. Is that not the case? I did look at it and .... When we went live last summer we sold 16 weeks within about 2 hours of the property going live on their website.
Sykes professionally photograph your property, create advert, you just need to be careful to set rates where you want them and not give them control over discounting etc. Our 3 bed property is already fully booked from start of Feb to late October with 30% deposits taken, it was only empty in Jan as we’d been solid since June, including over Christmas and new year and we wanted some time to refurbish / spruce it up.
Gassing Station | Holidays & Travel | Top of Page | What's New | My Stuff