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!

AirBNB and UK Landlords

The Airbnb craze that is sweeping the nation and growing in popularity with many tenants is a causing a growing problem for the many private sector landlords that are discovering that their tenants have actually sub-let via Airbnb. As tenants begin to embrace the new and funky trend, they are failing to check if their tenancy actually allows them to do so.

According to “Landlord Action” the number of cases where tenants have sub-let properties without their landlord’s permission has trebled. Landlord Action have highlighted that sub-letting without permission can cause several problems for the Private Sector Landlord including;

  1. A Breach of Tenancy Agreement
  2. Additional wear and tear on the Buy to Let property
  3. A Breach of mortgage terms on the buy to let property
  4. A Breach of Building Insurance terms and conditions

It seems crazy that back last year it was highlighted in the news that the Government wanted to change tenancy agreements with a view to allowing tenants to profit from someone else’s asset. How can this be allowed to happen and what is even worse is that without the changes to the tenancy agreements discussed by the Government, the platform Airbnb is allowing this to happen anyway!

How can your tenant be allowed to make even more money from your property than you do? Is this plain and out right cheek on the part of the tenant or are they boxing clever and chancing their arm at turning your rental property into a hotel or HMO for much more money than they are paying you?

As Landlords ourselves we would be mortified to discover that our tenants were profiting from the sub-letting of our house and we feel that the Government should step in and place tighter restrictions on websites like Airbnb. There is no way that your tenant should be able to make more of a profit from your property than you do.

For more information on this topic read the article featured on PropertyWire