I frequently get asked by friends and colleagues whether they should consider trying out Airbnb to rent out their buy-to-let investments or whether it's best to stick with what you know, i.e via the traditional high street Lettings agents?
One of the questions has been based around the Tax advantages, because there has been this unwritten rule that renting through online sites such as Airbnb, similar to selling via auction sites such as eBay, is all tax exempt!
Well finally all of these tax questions are being answered and have formalised tax positions on list in this BBC article below.
Now whether you decide to go it alone and do short term rentals verses an assured long term rental is really a matter of preference. My recent research has highlighted that you 'could' make considerably more money on a per day/per week basis, but it also has the potential of being very seasonal and of course you have to have your place fully furnished for it to work.
There are a number of host companies out there to manage the bookings, the cleaning, the keys etc, but obviously unless you are really happy to be flexible and that it isn't critical that you get a guaranteed return on your rental investment, a traditional rental is still probably best for you.
We are expecting to see more and more hybrid models appearing on websites for London Estate Agents, both in terms of rentals and sales. This will give you the option of paying a smaller listing fee/commission if you want to do all the work and take some risks or go for the full service and value proposition from a professional estate agency.
If you are an Estate Agent looking to develop your next generation responsive website, and maybe extend to a hybrid model too, talk to us at Starberry, we ready to create an award winning solution for your business. Click here now
When it comes to renting out furnished accommodation - as many people are doing by using sites including Airbnb and Ownersdirect - there is already a Rent a Room scheme giving you £4,250 tax free, rising to £7,500 from next month.