Up in the Air?
28 Sep 2016
Airbnb has been getting a great deal of press lately, both good and bad. A recent Channel 4 Documentary showed some of the horror stories that both hosts and guests have experienced.
But with careful management, Airbnb is proving to be very lucrative for some proving that it’s not only holiday makers who are benefiting for this new ‘sharing economy’.
Investors are increasingly turning to holiday lets as a way to bypass new tax regulations that come into force next year, meaning that mortgage costs cannot be offset against rental income. The rules for holiday lets, however, are different. Landlords are finding that short term lets are proving very lucrative as many tourists and business travellers shun traditional hotels in favour of a more personal, authentic experience.
There are even Airbnb management services available to take care of the entire lettings process on behalf of landlords which claim to also boost revenues for them.
However, there are concerns that this growing sector is having a negative impact on the availability of stock for those who really need it. A recent report by the Residential Landlord’s Association (RLA) found that the majority of listings in London were lets that were available for more than 90 days per year. And it’s not only tenants that are affected. Finance firm Funding Options have found that hotels have increased spending on refurbishment by 57% in order to compete in an increasingly competitive market, where consumers have a much wider choice.
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