AUTUMN/WINTER 2017 TRENDS Forget Fashion Week, we're more excited about the latest colour palettes, textures and materials for homes. Here's our round-up of the trends ... Read Feature
Ah, summer holidays: long, lazy days spent reading books, sipping Piña Coladas and switching off. Yes they may cost an arm and a leg, but what if we told you that your home could help pay for your trip – or at least clock up a nice bit of spending money…
Put your home to work while you’re away
Thanks to short-term rental site, Airbnb, you can now turn your home into a money-maker by renting it out to other holidaygoers while you’re on holiday.
Currently there are over 40,000 Londoners using Airbnb as a way to generate extra income – from those wanting to make an extra bit of money while they’re away, to seasoned landlords wanting to synchronise their tenancy or avoid void periods, to homeowners trying to sell a vacant property.
Hosts typically earn up to 50% more renting their home short-term than they would on a long-let – we’ll go into exactly how much later!
How does it work?
Portico offer a cost-effective Airbnb management service, Portico Host, to give you the flexibility of short-term letting without the hassle – ideal if you’re not in the same country! Effectively they play Host, looking after the whole Airbnb process from getting your property “business ready”, setting up a listing online, vetting potential guests, confirming bookings and of course handling the laundry and cleaning.
All you need to do is let them know which days the property is available to rent out!
Summer in the City
As London Hosts are limited by a 90 day limit annual on Airbnb, it’s important to know how seasonality affects potential income.
Take a look at this graph which shows a typical* monthly Airbnb revenue in London, from January 2016 to April 2017, according to AirDNA data.
As you can see from the graph, demand for temporary accommodation in London is at its highest in the summer months, with a two bedroom property costing a whopping 78% more in July 2016 than in January 2016.
To put that another way, a typical 2-bedroom London property* went for £91.76 a night in January 2016, compared to £163.33 a night in July the same year, (the price excludes the cleaning fee which is paid by the guest).
And prices will rise even higher this summer. Airbnb is growing in popularity each and every day, with millions of millennial travellers scanning the site for a home away from home while they visit another country, travel for business, or head to London for a specific event.
Portico saw a 21% price increase year on year to April 2017, and in line with year-on-year growth rates, expect July 2017 to command the highest prices yet: a typical* monthly revenue for a 2-bed London property should achieve £4,642 on an 85% occupancy rate.
That would translate into £1,866 in 7 days if you rented out your 2 bedroom property while on holiday. Or, after the Airbnb fee and the Portico Host Management fee, £1,475. Certainty enough for a few sangrias!
Some guests will stay for 2 days or a week, others will stay for months while on a short-term contract for work.
Jetting off this summer?
Of course the amount you could earn varies by the size, condition and location of your property as well as occupancy rate, but the summer months are definitely the ideal time to get your property on Airbnb.
Portico Host aim for a minimum 70% occupancy rate, but typically achieve anywhere from 70 to 100%.
Click on the image to the right to get an instant Airbnb valuation on your property and find out how much you could earn!
Where do I sign?
Portico offer two Airbnb management packages: Comprehensive or Concierge.
Comprehensive is a full management package, which includes a dedicated Account Manager who will arrange professional photographs to be taken of your property, create a property listing, handle all guest screening and communication and organise professional cleaning and hotel standard linen and towels. They will also implement an intelligent price management strategy to make sure you achieve the best possible income.
Portico Host also provide all their guests with a useful welcome book and a Portico Places card which entitles them to a range of fantastic discounts in the local area.
Their Concierge service includes all of the above, plus some extra services which will really boost the desirability of your property to Airbnb guests: installing and setting up Wi-Fi, furnishing the property and maximising the property’s appeal. This package is ideal for those with an empty property.
You’ll begin earning as soon as we confirm your first booking, receiving the payment directly into your bank account minus Airbnb’s 3% charge + VAT. Then at the end of each month after you’ve been paid, Portico will take their fee + VAT from your total earnings and the cleaning fee paid by the guests.
If you’re interested in listing your property on Airbnb, or if you’d like to hear more about Portico’s Airbnb Management London service, give them a call today on 0207 099 4000.
*83rd Percentile according to AirDNA figures
The potential Airbnb day rates quoted here are indicative, not guaranteed and may be lower if the property has a low occupancy.
Portico London estate agents have 18 offices across London. Click on the following links if you would like to buy, sell or let your property in that area: Acton estate agents, Battersea estate agents, Bloomsbury estate agents, Camden estate agents, Clapham estate agents, Dulwich estate agents, Fulham estate agents, Hammersmith estate agents, Highbury estate agents, Islington estate agents, West Hampstead estate agents, Bethnal Green estate agents, Leyton estate agents, Walthamstow estate agents, Ilford estate agents, Forest Gate estate agents, Woodford estate agents and Chigwell estate agents.
Mark Lawrinson, Regional Sales Director of Portico London estate agents, has spoken out about the possible effects of Brexit on the London housing market, saying, “... Read Feature
The Bank of England has increased its base rate from 0.25% to 0.5%, the first rate rise in 10 years – here's how the rise will affect the property ... Read Feature