Are you considering renting out your property but aren’t sure if Short-Letting is the right choice for you? In this blog post, we’ll explore how much potential income you could earn by using Airbnb, VRBO, Booking.com compared to traditional long-term rentals. We’ll also discuss the type of work involved and the benefits of using a holiday lettings manager. So, let’s dive in!
How Much Can You Earn with Short Lets?
You could earn significantly more with short letting than with traditional rentals. For example, a two-bedroom flat in Ilfracombe could earn you approximately £650 per month in rent. However, if you make it a short-term let, you could earn up to £1,523 - £1,862 per month on average after fees from your property manager have been deducted!
So, why is there such a difference? With Airbnb et al, you’re able to charge a higher nightly rate since guests usually only stay for a short period. You also have more control over the pricing, so you can adjust it depending on demand and seasonality. This flexibility can help you maximise your earnings.
How Does Holiday Lets Compare to Traditional Rentals?
When it comes to traditional rentals, there are a few key differences to consider. Firstly, you’ll usually have a longer-term lease with a tenant, which can provide more stability and predictability. However, as we discussed earlier, the potential earnings are much lower. Additionally, you’ll typically have more responsibilities as a landlord, such as handling maintenance and repairs.
With Holiday Lets you’ll have more flexibility and control over your property. You can choose when to rent it out and for how long. However, you’ll also need to be prepared to handle more turnover, cleaning and laundry, and more guests. This can be a pro or a con depending on your personal preferences and circumstances.
What Type of Work is Involved?
One of the main concerns people have when considering short-letting is the amount of work involved. However, this can vary depending on your situation. If you’re able to manage the property yourself, you’ll need to handle tasks such as cleaning, restocking supplies, and communicating with guests. You’ll also need to be available to handle any issues that may arise during a guest’s stay.
If you don’t have the time or desire to manage the property yourself, you can hire a manager, such as Changeovers Plus We handle all the day-to-day tasks for you, such as cleaning, restocking supplies, and communicating with guests. We’ll also be available to handle any issues that may arise during a guest’s stay. This can be a great option for those who want to earn money from their property without having to put in the work themselves.
Regardless of whether you manage the property yourself or hire a manager, you’ll need to invest time and money into creating a comfortable and inviting space for guests. This can include investing in high-quality linens and towels, providing basic toiletries, and making sure the property is clean and well-maintained. At Changeovers Plus, we supply hotel quality linen and towels.
Benefits of Using a Manager
If you’re considering using a manager, there are several benefits to keep in mind. Firstly, you’ll be able to earn money from your property without having to do any of the work yourself. This can be a great choice for those who don’t have the time or desire to manage the property themselves.
Additionally, a manager will have experience managing properties and dealing with guests. This means they’ll be able to handle any issues that may arise quickly and professionally. They’ll also be able to provide tips and advice on how to optimise your listing and maximise your earnings.
Finally, an Airbnb manager can help you keep your property in top condition by handling tasks such as cleaning and maintenance. This can help ensure that your guests have a positive experience and are more likely to leave positive reviews, which can help attract more bookings in the future.
How to Optimise Your Listings
If you want to maximise your earnings, it’s important to optimise your listing. This means creating a compelling description and supplying high-quality photos of your property. You’ll also want to make sure your pricing is competitive and adjust it based on demand and seasonality.
Other tips for optimising your listing include providing basic amenities such as toiletries and coffee, responding quickly to guest inquiries, and offering discounts for longer stays. You can also consider adding extra services such as airport pickups or tours to help differentiate your listing from others in the area.
Potential Risks
While there are many benefits to using Airbnb and the other sites, there are also some potential risks to keep in mind. For example, there’s always the possibility that a guest could cause damage to your property or steal items. Additionally, there have been cases of guests throwing parties or breaking other house rules.
To help mitigate these risks, it’s important to have a clear set of house rules and to communicate them clearly to guests. You can also request a security deposit to help cover any potential damages. Finally, make sure you have adequate insurance coverage to protect your property in case of any unforeseen incidents.
Tax Implications
When you earn money from short lets, you’ll need to pay taxes on your earnings. This can be a bit more complicated than traditional rentals since you’re technically running a business. However, there are several tax deductions you may be able to take advantage of, such as deducting expenses related to the property and depreciation.
It’s important to consult a tax professional to ensure you’re complying with all legal requirements and taking advantage of all available deductions.
Final thoughts
So, can you earn more if your property is a holiday let? The answer is a resounding yes! By renting your property as a short-term let, you could earn significantly more than with traditional rentals. Additionally, using Changeovers Plus can help you earn money without having to do any of the work yourself. However, it’s important to consider the potential risks and tax implications before getting started.
Overall, Airbnb and the other 30 or so sites can be a great way to earn extra income from your property. Whether you choose to manage the property yourself or hire us as your manager, there are many benefits to using these platforms.
Don't let the stress of managing a holiday home take away from your enjoyment of life. Contact us today and let us take care of everything.
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