The average two-bedroom London property let through Airbnb generates £106 in income for London landlords per day, according to Portico estate agent.
Average Airbnb day rates range from the most expensive in Westminster, at £224, to a reasonable £65 in Bexley, the agent reports.
At an average of £106 per day, letting a two-bed property on Airbnb would produce a healthy monthly income of £2,226 for London landlords on a 70% occupancy rate – the minimum occupancy that Portico expects to achieve.
In fact, the agent believes that some properties can achieve up to an 80% occupancy rate, plus, it expects Airbnb listings to receive a booking within one week, so London landlords can start earning immediately.
If you are interested in using short-term let sites to rent out your property, follow these ten top tips for success: https://www.justlandlords.co.uk/news/10-top-tips-success-short-term-let-sites/
When compared to the average monthly rent on a two-bed London property on a long-term let (£1,777), London landlords can earn a huge £449 more per month.
The graph below shows the estimated average Airbnb day rate for a two-bed property for each London borough:
The following graphic shows the number of active hosts per borough:
Westminster has the highest number of active listings, at 5,631, closely followed by the centrally located Tower Hamlets, at 5,076, while fashionable Hackney stands at 3,572.
Brent, at an average of £99 per day, and Newham, at £95, stand out for having a lot of active users despite their Zone 3 locations. This can be put down to the fact that Brent’s most famous feature is the legendary Wembley Stadium, while Newham is extremely popular for those who want to be close to the ExCel exhibition centre.
Merton is also in high demand, as it’s home to Wimbledon. Although there are only 642 active listings in the area at present, the number of hosts is expected to rise dramatically to cater to seasonal demand.
The Managing Director of Portico, Robert Nichols, explains how Airbnb could be a great option for London landlords: “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 the short-term.”
London landlords, if you decide to take advantage of the opportunities that Airbnb presents, remember that you will need specialist Landlord Insurance to protect your property from potential perils. Our policy has been rated 5 Star by Defaqto for yet another year, giving you all the cover you need: http://justlandlords.co.uk/landlord-insurance
Graphics courtesy of Portico Host Airbnb management.