Start An Airbnb Business | Become An Airbnb Entrepreneur | Serviced Accommodation UK | How To

(gentle music) – [Shaf] If I had a crystal ball, I still wouldn’t like to guess what is just around the corner for us. My hunch is that the
continuing Brexit chaos and the uncertainty in business is not going to be good
news for the economy. Are you prepared if tough times hit? Or would you like to try and build up a little nest egg of extra reserves? Maybe you’ve thought
about renting out a room on AirBnB to boost your bank balance? Today’s Ask Shaf is going
to take a closer look at the pros and cons of doing just that. First of all, how easy is it to advertise
your room on AirBnB? Pretty straightforward, as it happens. At the start of 2019, there
were 200,000 active UK listings, and according to the site, the average host earns
£3,100 for renting out a room for just 36 nights for
the course of a year. Simply register with your email and create a profile for your property. When doing your profile,
bear in mind plus points that will interest potential customers. Are you near a sporting venue, a theatre or tourist attractions? How about the public transport? Are you upstairs or can you
accommodate wheelchairs? What’s your cancellation policy and will you include little extras like a bottle of wine, bread and milk? Check out nearby properties
for a realistic price guide. You can also approve potential guests before they can complete their booking. So hopefully, you pop your listing up and watch the bookings flood in. How easy was that? Well, there might be some
things you haven’t thought of so please take a moment
before you start snapping Instagram-style pics of
your pad for your profile. Let’s think about the tax implications. Under the UK government’s
Rent A Room scheme, you can earn £7,500 a year
from letting out a room in your house without paying tax on it. You must opt-in to the scheme and any income over this threshold requires a self-assessment tax return. If you’re letting out a whole property, or don’t opt in to the scheme, you must also do self-assessment. How many nights can you
let for during a year? In London, there’s a 90-day rule. In Scotland if you host a property that’s available for 140 days a year, it’s deemed as a self-catering property and then becomes subject
to business rates. Different local authorities
may have different rules, so it’s essential to check up with them. For example, Glasgow City
Council updated its rules around short-term accommodation in 2017. Other factors you will need
to consider include insurance. Contact your household insurance to see if you’re covered as an AirBnB host and if not, get
alternative cover in place. Similarly, check up with
your mortgage provider to see if you’re allowed to rent
out a room under their terms. If you are renting, it’s
unlikely a landlord will agree to you subletting their
property, but you can always ask. I can’t stress enough how important it is to check these things before going ahead. If you don’t do your homework, the results will be dreadful. You might put in a
claim that isn’t covered by your insurance and
your mortgage company might be so cross they’ll fine you, or in the worst-case
scenario, repossess your home. That’s a big price to pay for trying to make some extra money! So while AirBnB seems like
a good way of making money, research whether it’s
the right option for you. From a safety point of view, the site itself hosts lots of tips. Just like our economic situation, I can’t predict if letting
a room is the best thing for you to do but if you follow my advice, at least you’ll be making
a well-informed decision. Let me know what you think and don’t forget to subscribe
to my YouTube channel. (gentle music)

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