How To Start An Airbnb Business | How To Become An Airbnb Entrepreneur #askshaf

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…

 Before we get onto today’s Ask Shaf can I ask you to do me a quick favour? Can you please hit the subscribe button and the notification bell on my YouTube channel, that way you’ll be aware whenever I upload new content and more importantly, my videos will appear in more searches.

 Now getting back to today’s Ask Shaf…

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 over 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 are 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 are 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...... . Hit the subscribe button to my YouTube channel. It has tons of top tips and advice to help you become a successful property entrepreneur.