If you have a second home in London, or are thinking about buying property to rent out, you may have considered letting platforms such as Airbnb. Thanks to these online opportunities, many normal homeowners who wouldn’t consider themselves as landlords can now make extra cash by renting out their home.
For most it’s a win-win situation; if your home is vacant quite often, it can be transformed into a homestay for tourists and business travellers. People are willing to pay a good price for a modern property in a great location, so if you secure a lot of bookings this will help you pay the mortgage on the property and could even be an extra source of income.
Hosting on Airbnb can be a simple and profitable way to pay off your mortgage sooner. However, you need to be aware of the new 90 day rule which came into effect in January 2017 to regulate the sharing economy. Hosts can legally only rent their entire homes out for 90 days per calendar year, so it’s important to try and use as much of your 90 day allocation as possible. That’s where Hostmaker comes in – we can manage your profile and guest experience to ensure you attract as many guests as possible to achieve maximum occupancy.
The 90 Day Rule – and how to get around it
- This only applies to ‘entire home’ listings
- If one booking lasts for longer than 90 days, this doesn’t qualify as a short let
This means there are a number of solutions if you still want to rent out your home for more than 90 days a year without breaking the law. If you have an entire property which you don’t ever live in, you could consider medium and long term stays. Alternatively if you have a couple of spare rooms and don’t mind sharing your home with guests, there are no restrictions on renting out rooms (yet this won’t make the same kind of yields). Whether you’re spreading your wings and flying south for the winter, or don’t plan on returning to your current nest, there are plenty of options to keep the payments rolling in.
At Hostmaker we’ve come up with the ultimate solution, offering a service which combines managing short, medium and long term lets. Think of it as a crossover between a letting agent and a holiday let management tool, which increases occupancy throughout the year and reduces long vacant periods. We can target medium term lets on websites such as Zoopla and RightMove, to find longer bookings for hosts which deliver a greater return and lower rates than a traditional estate agent. Remember that if you find one booking for over 90 days, for example six months, this doesn’t prevent you from using the short term allocation for the rest of the year. Find out more about the 90 day rule in this article.
With Hostmaker’s market expertise, you can stay compliant while boosting the earning potential of your London property. If you’d like to get your mortgage paid off then contact us for more information about our Assured Income offer.