2nd August 2023

Our guide to buying & renting out an Airbnb property

This post is not affiliated with, or an advertisement for Airbnb.

The increase in staycations in the UK in the post-covid era combined with a rise in booking apps in the past decade, such as Airbnb, has meant there are more opportunities to make a profit from a holiday let. As of 2023, a GoCompare survey found that the number of people still determining the type of holiday to take, or choosing a break like a staycation, increased from 12% to 41%.

Though hotels have traditionally been viewed as a holiday go-to, holiday homes have plenty to offer guests, including more of their own space and privacy. However, with rising prices across the sector and beyond, it’s also becoming more common for people to rent out single rooms in hosts’ homes at a more affordable rate. So, it’s no surprise that people are turning to Airbnb and similar apps to find somewhere to stay, whether they are travelling for business, or are simply going on holiday. 

But you might be asking, what does this have to do with me? Well, with this increase in demand for holiday lets, there also comes a growing opportunity for investors to consider. If you’re an existing property owner, or are looking for exciting new ventures to invest in, there’s a lot to be said for purchasing a holiday let and getting it Airbnb-ready. 

What is Airbnb?

Described by Investopedia as a marketplace connecting people renting out their property to those searching for stays in specific areas, Airbnb has transformed the travel industry. Most recent statistics show that it is now operating in 191 different countries, has over 4 million Airbnb hosts worldwide and over 6 million active listings on the platform. Its size and spread ensures that, whether guests prefer the privacy of a holiday home, or are looking to save on costs by renting a room in someone’s home, Airbnb can meet their needs. 

Can I rent out a property on Airbnb?

Yes, in most areas, it’s quite easy to become an Airbnb host, especially if you’re already set on having a holiday let and are looking for ways to advertise your space (if you’re still considering whether or not this is a good avenue for you, you could read our blog: Are Holiday Lets a Good Investment?) However, if you live in a city, there are some laws that only apply to more populated areas that can restrict your ability to host guests. For instance, in some cases, you may need a permit to register or to obtain a licence (see the Airbnb regulation article for more information). You’ll also need to check with your mortgage provider, and be willing to take into account further considerations, for example, stricter house rules, if your Airbnb is within close proximity to permanent residents, such as if it’s in a flat block. 

Creating a listing is free and, when looking at buying an Airbnb as an investment property, there are a wide range of geographical areas you can focus on investing in. At SDL Property Auctions, our expansive portfolio of properties to purchase by auction covers the whole of the UK. Those looking to use properties as holiday lets choose popular tourist destinations including big cities, such as London and Manchester, or sought-after rural locations like the Lake District and Peak District. However, the demand for ‘hidden gem’ locations has meant that investors can widen their portfolio to ‘up and coming’ destinations. 

Tips on buying an Airbnb property

With an increasing number of people deciding to holiday in the UK rather than abroad, buying a property to let as a holiday home through Airbnb has become a popular business opportunity. This means there is now a lot of competition in this field, so it’s best to purchase a unique property and decorate it in a way that will stand out.

Transforming a property into an Airbnb let is no easy feat. With over 150 million worldwide users in 2023, it’s important to have a site that stands out and receives great reviews so people will be more inclined to stay at your property in the future. However, before you can rent out the property, to create a positive experience for guests, we’ve listed some tips on the things you’ll need to consider below. 

• Purchase method – Generally, property auctions tend to offer properties that are more unique than those available through estate agents, meaning, if you choose wisely, a property purchased by auction may be more likely to generate interest among guests.
• Furnishings – Once you’ve purchased a property, you’ll need to consider furnishings. A good holiday let is fully furnished. From fully functional kitchens to cosy living areas and more – whether you’re letting out an apartment or cottage, you’ll need to make a list of furnishings and other amenities to ensure guests have all they need to enjoy their stay.
• Maintenance – From the living areas to the garden (if there is one) you will need to make sure the property is kept in good condition. If guests contact you about any maintenance issues they are having, or other concerns they have, you will need to deal with these promptly.
• Cleanliness – We recommend making sure that the property is kept clean and tidy at all times. Whether you’re thinking about hiring a professional cleaner, or doing this yourself, this should involve deep-cleaning the let before your guests arrive and in-between stays.
• Access – You should make the check-in process for guests as seamless as possible. Since the covid pandemic, contactless check-ins have become more commonplace, meaning hosts will leave the keys in a secure area, or provide guests with unique access codes to the property.
• Additional costs – There are some additional costs that may come with owning a holiday let. You should leave some space in your budget to factor this in if needed, such as for repairs and replacing lost keys. Though frustrating, these will need to be dealt with quickly, as further bookings depend on positive reviews from guests. 

Purchasing a property suited to Airbnb

Ensuring your Airbnb rental is unique is another key element to help you in securing a consistent stream of bookings. This includes planning the theme or aesthetics of the property before you start decorating and, as mentioned, ensuring it’s based in a strategic location. In particular, if you’re aiming to rent the property at a higher than average price, this means you’ll need to put more effort into providing guests with the experience they’re looking for, whether through the decor, location or another way. 

There are a range of distinctive Airbnbs out there, but drawing inspiration from pop culture seems to give them a competitive edge. For example, in-line with the release of the film Barbie, the Barbie Dreamhouse, which is a large pink mansion situated in Malibu, has made its return to Airbnb, offering fans a taste of this lavish life. Besides this, unique UK lots include a dome-style glamping pod in Surrey, a tree-house in Sussex and a hobbit-style cave house in the Highlands.

While financial constraints may not allow you to be this creative with your Airbnb let, if you’re looking for a more distinctive-style property, at SDL Property Auctions we’ve sold a number of one-of-a-kind properties in the UK for a good price. This includes a nuclear bunker in Lincolnshire (sold for over £25,000 plus fees) which we received national press coverage for. It’s worth keeping an eye on our Timed Auctions and Auction Events to see if a property comes up.

Is renting out an Airbnb worth it?

Airbnb can be a great, affordable way to advertise property to users. 6 guests check into an Airbnb listing every second and the majority of Airbnb hosts  pay a flat service fee of only 3%, which is deducted from the booking subtotal. The platform provides hosts with complete autonomy over prices, guest requirements, house rules and interactions with guests. Airbnb also provides property damage protection and insurance, while the messaging feature makes it easy for hosts to communicate with guests; sending across instructions and other information prior to check-in. We’ve listed some other benefits to renting out a home on Airbnb below:

• Chance to make over a single income: taking a look at Airbnb’s current listings in the UK, the most expensive property for a family of four during peak season in July is over £2,000 per night. If fully booked for a month, this property would achieve around £60,000, with a potential annual income of more than £720,000 if booked consecutively through the year. For more information on holiday let incomes, read our blog: how to calculate holiday let yields. There’s also the opportunity to become a superhost, where you can make 64% more money. To qualify for this, there are requirements hosts need to meet. 
• User-friendly and stress-free for users and hosts: the simplicity of Airbnb sets it apart from other platforms. It’s well-organised and easy to navigate, allowing customers to find and book accommodation suited to their requirements. They can filter by location, price and other criteria. This makes it much easier for guests to find what they’re looking for. While the design of the app and website is appealing and consistent across devices, making it easy for customers to navigate and book accommodation from anywhere.
• Flexibility: Many landlords rely on booking websites such as Airbnb to advertise a holiday home or apartment due to the flexibility over the number of days they can rent it out for, as long as they don’t end up exceeding the maximum of over 90 nights per year, but this only applies to London. 

Buying a holiday let for Airbnb with SDL Property Auctions

If you’re a seasoned investor, branching out into the short-term let market through Airbnb is a great way to expand the reach of your existing portfolio of properties. Many of the lots available at SDL Property Auctions are transformed by investors into lucrative rental opportunities, and this includes the Airbnb market. Browse our auction properties to find your next project and turn it into a great place for visitors.