More and more home-owners are starting to realise the earnings potential of renting your property on Holiday-Let websites such as Airbnb & HomeAway instead of getting Long-Term tenants in. While it is not always going to be more fruitful renting your property this way due to varying occupancy rates, seasons & competition – many people are seeing huge increases in their rental income when switching to these new rental methods. New research has now revealed the boroughs of London where you can see the biggest rental returns vs traditional rental methods. London as a whole was found to offer an average increase of 56% when using Airbnb compared with using long-term rentals. This was actually one of the smallest increases in the UK due to the already sky-high rental prices but still represents a vast increase on traditional rental prices. One of the greatest hurdles which home-owners foresee when they consider renting on Airbnb is the hours and organisation involved however you can now leave all the hassle to a property management company. From rates as low as 13% it’s not much more than the standard 10% charged by Estate Agents for renting your place to tenants and with increases
Looking at the study which was conducted by Towergate Insurance, it is evident that the inner city boroughs are the ones who actually see the least increase in profits when using websites such as Airbnb which is actually quite surprising. After all we know that most people who use Holiday-Let websites are tourists and the most in demand areas of London would presumably be the ones nearest the centre. Kensington & Chelsea and Westminster remain the highest grossing areas when using short or Long Term Lets but there are some real gains in some boroughs when using Airbnb vs Traditional rental methods. The South West of London saw increases as high 142% with boroughs of Hounslow, Richmond upon Thames & Kingston Upon Thames doing particularly well. Boroughs with already high rental prices such as Islington, Hackney & Camden didn’t fare quite so well but still saw increases of up to 75%.All this points to the fact that renting on Airbnb is a great way to boost earnings on your rental property but it isn’t always that simple. One factor which isn’t taken into account on this study however is occupancy rate which is really the lynchpin of any successful Airbnb rental and that is where central locations prosper. A 142% increase is all well and good but if you’re occupancy rates are 25% you’re better off putting your home on a long-term let with an Estate Agent. We pride ourselves on our great occupancy rates and currently only take on properties inside zones 1 & 2 which are generally the most in demand ares of London.
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Eazy Management LTD
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