Holidaymakers have become an increasingly profitable market for landlords because they pay a higher daily rental rate than long-term tenants. So, to reach more holidaymakers, more landlords are renting their properties on Airbnb. But is renting your property on Airbnb actually worth it?
Airbnb is a website that makes it quick and easy for landlords to find local and international holidaymakers seeking private accommodation or space.
The user subscription rate for Airbnb is higher than most holiday let websites so advertised properties gain higher marketing exposure.
Should you rent your property on Airbnb?
From personal experience, I think it’s only worth renting your property on Airbnb if you do it yourself – without a property manager. Let me explain.
Property managers charge a fee for managing Airbnb properties. But, unlike tenancy agreements, additional fees can also be charged to clean and prepare the property after each guest leaves.
Remember, every guest expects clean linen and a clean accommodation. Failure to do so will result in negative feedback. To get more bookings, you need good, consistent feedback.
So, the more bookings you have, the higher the property management fees will be. Many aspiring Airbnb landlords forget this fact when estimating their income potential.
Holiday lets are not always more profitable
If you own a high rental or luxury property, the fees will not greatly affect your profit margin. But, if you do not, at least, double the rent of your Airbnb property, your profit will be greatly reduced by property management fees, especially if your guest only stays for a few days.
That’s why it’s better to manage your Airbnb rental without a property manager; you keep all the profit regardless of how long your guest stays.
In the next blog post, I will detail the risks you need to know about before renting your property on Airbnb.
So, is renting your property on Airbnb worth the effort?
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