Air BnB

[Marky47]

Hi

I'm about to inherit a properly which I'm thinking of renting out through Air BnB.

Does anyone have an Air BnB and if so is it better to run it through a ltd company or just normally.

Also how do you work out what to charge as I'm sure it would be different to renting it out per month.

Thanks

Mark

 

[ChrisCallaghan]

Several owners of AirBnBs that I have come across chose to keep the property in their personal names, and then run the AirBnB through an Ltd. That way the property asset is safely kept in the individuals name, and if anything goes wrong they are protected via the Ltd set up. Though running a single AirBnB through an Ltd may not be very tax efficient, and does require greater accounting responsibilities.

That being said, I'm an insolvency advisor and not a tax expert or accountant. I suspect it would be a good idea to set up a meeting with an accountant to run through all the options.

 

[kulture]

Airbnb is hard work. You have to make sure that the place is immaculate for every visit. The larger the property, the more work this is. Larger properties also suffer from parties, hen dos, etc. Regardless of what you specify. It can bring in significanltly more than rent BUT you are paying utlities and council tax. Look up airbnb properties in your area and see what they are charging. As a new landlord you will need to undercut them.
Assume 50% occupancy (it will be nearer 100% in summer and next to nothing in quiet times).

Consider where the property is. Some areas have local laws restricting the number of nights a year which you can rent it out. This will considerably change the maths.

How near to the property are you? Is it easy for you to check up on it? I live next door to mine, so I always know what is going on. Parties are impossble for me.

 

[Marky47]

The property is about ten minutes away. It's a three bedroom semi detached house in a rural area. It is very quiet and with a few adjustments to the property I think it will work well as an Air BnB. I just didn't know whether to set up a ltd company or just keep it in my name. I take it on board about the utility bills as I didn't think of that.

Thanks for everyone's help.

 

[Gyumri]

I wouldn't potentially expose yourself personally to any claim regardless of insurance hence the great value in trading through an Ltd.

 

[Bob Morgan]

Keep in mind that even by posting this message you have already triggered HMRCs 'Connect' System!

 

[ethical PR]

I run Airbnbs. You can check prices by searching for similar properties on Airbnb in your area

Then you need to run a budget to look at all your costs (set up and ongoing). This will help you to estimate what your likely profit margin is likely to be based, on how many days a year you estimate you can let the property for. Don't forget to estimate cleaning fees, STR insurance, utilities, linen changeovers, council tax etc

Unless you live in a coastal resort, tourist area like the Lake District, bookings are generally down across the country.

Importantly only do STR if you know you can cover all your costs if you don't get the bookings you expect.

 

[Mitch3473]

Why have you decided to go Airbnb, have you looked at the other holiday rental agencies...?
Airbnb is hard work, as mentioned above, and it seems that it doesn't offer much in the way of commitment from customers.
We own a small commercial laundry in a very touristy area and 98% of our clients are hoilday rentals, B&Bs etc and a few only use Airbnb to fill in the blanks when needed and they always seem to be trouble. Airbnb round here tend to be 2-3 day bookings, factor into that the extra outgoings, cleaners, heating, laundry, breakages, general wear and tear and it can interfere with decent weekly bookings. We also have a holiday rental but will not even think about Airbnb, we average about 70% utilisation, everyone being weekly or fortnightly bookings at a very good rental price and we dont need nor want any extra mither. The only upside I can see is their lower commision rate and you generally get what you pay for.

 

[ethical PR]

Sorry I don't agree @Mitch3473 it really depends where you are . Airbnb has by far the largest customer base on any listing company. And the largest brand awareness. I get 85% of my bookings through Airbnb. The rest are direct.

It doesn't matter whether you use Airbnb or another listing company - all STRs are hard work.

Operating in a holiday resort area is very different then doing STR in a city centre or rural area.