Holiday home from home?
MANY of us would love to make a bit of extra cash – but could you be sitting on (or in) an easy money-making opportunity right now? We’re talking about your own home. Renting out your home, or just a room, can earn you anything from about £15 a night to more than
£4,000 a month, depending on its size, location and facilities, and whether you’re just renting out a room or the whole property – and you don’t have to be a second-home-owner to do it.
A number of people now rent out their homes while they’re away on holiday themselves, or rent out a room to travellers while they’re still there.
Your home doesn’t need to be in a typical tourist destination to be worth renting either: holiday rental companies like HomeAway.co.uk and Airbnb.co.uk point out that people may need somewhere to stay because of a family event nearby or if they have business in the area.
Karen Mullins, HomeAway regional director UK & Ireland, says: “If you ensure you’re compliant with local laws and regulations, it’s a great opportunity to earn additional income to assist in paying off the mortgage, making home improvements, funding the children’s education or even your own holidays.”
Here, Karen and Jeroen Merchiers, Airbnb’s Europe, Middle East and Africa regional director, answer some questions homeowners may have...
Many people now rent out their own properties to make extra cash while they’re not there. LISA SALMON finds out more
WHAT IF YOU DON’T LIVE IN A TOURIST DESTINATION?
KAREN says: “If you’re the legal owner of the property, you’re able to rent it out.
“There are also families who are looking to escape the hustle and bustle of reality and enjoy the peace and quiet of a secluded area.
“If you’re near local amenities, either walking distance or a short drive, make it clear on your property page. Whether that’s local shops, restaurants, pubs or attractions, this will be very attractive to families who want to stay in the area. ”
Jeroen adds: “Guests booking on Airbnb are discovering more than the traditional tourist areas, thanks to locals opening up their homes and unique spaces, allowing travel in previously undiscovered areas.”
WHAT FACILITIES SHOULD YOU OFFER?
HOSTS should check everyday appliances in the property – fridge, oven, microwave and kettle – are in good working order, clean and ready for use. Ensure there’s hot and cold running water, and provide basics like tea, coffee, sugar and store cupboard supplies, advises Karen.
She also suggests hosts should also consider leaving washing-up liquid, dishwasher tablets and toilet roll.
It’s also worth providing a welcome pack, including information such as where to find extra towels, bedding and kitchen utensils, etc.
“A welcome pack gives your home a personal touch,” says Karen.
Impress guests further by including home comforts like TV subscriptions, and it won’t hurt to offer extras like kids toys, pet treats, or a welcome gift for adults such as a bottle of wine. “You’ll make your guests’ stay extraspecial and inspire them to leave a positive review,” Karen points out.
“And make sure you have wi-fi – guests will want to know they’re connected.”
In addition, Jeroen suggests hosts provide safety essentials such as a fire extinguisher, smoke alarm, first aid kit and a carbon-monoxide detector, as well as fundamental amenities.
“These are the items guests consider important for a comfortable and safe stay,” he says.
HOW MUCH MONEY CAN YOU MAKE?
AIRBNB and HomeAway hosts set their own prices. Airbnb charge 3% commission, plus guests pay a service fee of up to 13% on top of their booking total. HomeAway charge 5% if hosts choose their pay-per-booking option, plus a 3% payment processing fee.
To help set a price, hosts can search for comparable listings in their area, or use tools such as the companies’ on-line calculators (homeaway.co.uk/lyp) or airbnb. co.uk/host/homes) to help determine the going rate.
HomeAway data shows average nightly rates for full holiday home rental in the UK, range from around £84-£500, and nightly rates for a private room through Airbnb range from around £15-£30.
WHAT TIME PERIOD CAN YOU RENT A ROOM/HOUSE OUT FOR?
“HOSTS manage their own calendar,” explains Jeroen. “They list their space when on holiday, when children fly the nest, ahead of major events in their area, and some for extra income.”
HOW DO YOU PROTECT VALUABLE POSSESSIONS IN YOUR HOME?
THERE are several options for how to store your valuables if you’re renting your home while you’re away, says Karen, such as a lockable pantry, bedroom or cupboard.
“If you don’t want to do that, store them with family members close by or trustworthy neighbours,” she suggests. “Renting your house or flat while you’re away also helps to make the property less of a target for burglars, because your home isn’t empty for days or even weeks.”
WHAT SAFEGUARDS ARE THERE?
BEFORE you rent your property to holidaymakers, make sure it’s not in breach of your lease or mortgage agreement. Airbnb and HomeAway provide hosts with up to $1million (approx £768,000) of property damage protection and third party insurance to cover stays reserved through them.