Average Londoner Earns Over £100 a Day from Airbnb

The average 2 bedroom London property rented through Airbnb generates £106 a day (excluding the cleaning fee), according to Portico estate agents who have recently launched a premium Airbnb management service.

Average Airbnb day rates range from the most expensive at £224 a day in Westminster to a reasonable £65 a day in Bexley.

The average 2 bedroom London property at £106 a day would produce a healthy monthly income of £2,226 on a 70% occupancy rate, which is the minimum occupancy the agents say they expect to achieve.

In fact, the agent states that some properties can achieve up to an 80% occupancy, plus they expect Airbnb listings to receive a booking within 1 week so Hosts can start earning immediately.

When compared to the average monthly rent for a two bedroom property in London on a long-term let (£1,777), there’s a huge £449 a month difference.

The below graphs show the estimated average Airbnb day rate for a 2 bedroom property per London borough, and the number of active hosts per borough.

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 *Portico rental data January 2017 (based on two bedroom properties and a 70% occupancy rate).

Westminster is the borough with the highest number of active listings at 5,631, closely followed by centrally located Tower Hamlets with 5,076 listings, and trendy Hackney with 3,572 active listings.

Brent (£99) and Newham (£95) also stand out for having a lot of active users considering their Zone 3 locations. This can be put down to the fact that Brent’s most famous feature is the legendary Wembley Stadium; similarly, Newham is extremely popular with Airbnb guests who want to be close to the Excel Exhibition Centre.

Merton is also in high demand as it’s home to Wimbledon. Currently there are only 642 active listings in the area and the average Airbnb day rate for a two bedroom property sits at reasonable £95 a night, but we expect the number of hosts and prices to rise dramatically with seasonal demand.

Robert Nichols, Managing Director, Portico, says:

 “Londoners in their thousands are turning to Airbnb as a way to generate extra income. And despite the 90 day limit, even seasoned landlords are coming round to the fact that a combination of Airbnb and traditional tenancy will maximise their return on investment.

If your property becomes vacant in the quieter months, we recommend listing your property on Airbnb and synchronising your tenancy to start a long-term let in the summer or late summer when demand from tenants and therefore prices are highest.

Or, if your property is already on the market, why not earn on Airbnb until you let or sell it? Every day it’s sitting vacant is potentially losing you money, so it really does pay to get on board with Airbnb in short-term.”

Discover the Airbnb value of your property!

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Diversity makes it difficult to reach Landlords

Browsing through our latest copy of the Landlord & Buy-to-Let Magazine (yes the hard copy that comes in the post!) we came across an article on page 2 that sparked an interest for us.

One of the opening paragraph’s states that “Landlords are such a diverse group of people that it is almost impossible to reach them all to communicate new rules and regulations” 

Rightly so Landlords are an incredibly diverse group of people but they are not a group of people that are that difficult to get hold of to communicate new rules and regulations.

Most Landlords (with the exception of some rogue landlords) will have informed the local authority in the area in which their property is located that the property is owned by a landlord but the tenant is liable for the council tax.  How difficult would it be for every local authority to collate a list of all property that is owned by a landlord but rented to someone else and communicate this to the necessary sectors with regard to law changes and regulations.

Surely it is not a case that us landlords are so diverse that we are difficult to get hold of, but that it is the lack of communication that goes on between regulatory boards and local authorities. Take for example the HMRC… they seem to be able to communicate (more often than not) with employers, local authorities, child benefit departments, National Insurance Departments etc to be able to know if there are any discrepancies, SO.. why can’t this be the case for sharing information connected to Landlords.

Equally the HMRC know whether or not we have received income from a buy to let property in our tax returns (providing you have declared everything you should have), so yet again… there is another avenue for getting information across.

In the article Kate Faulkner from Designs on Property talks about collaboration in the Private Rented Sector, which in our opinion also boils down to communication. If more letting agents, legal companies, landlord organisations, local authorities and the HMRC etc worked together as one big team then the information Landlords need would stand a greater chance of getting through.

So hat’s off to Kate for opening up the debate on collaboration. There must be a better way for ALL landlords to get the information they need and by running information websites the way we do, we are helping in our own little way to make sure landlords keep up to date.

For more information please click here