A survey by industry supplier CIA Landlord Insurance has analysed the comparative costs of traditional renting and Airbnb in major world cities.
And it shows that in London, landlords could make up to £75,912 every six months by switching to Airbnb letting.
The exercise by the insurer involved comparing the average monthly cost of renting a one-bedroom flat to the average monthly cost of an Airbnb .
It says a six-month traditional rental in London (average cost £11,088) is actually over £1,000 cheaper on average than the cost of just one month in an Airbnb (£12,652).
Amsterdam ranks second on the list with an average cost of £8,915 for six months of renting, which is only slightly more money than the cost of one month’s stay in an Airbnb (£8,367 on average). Canberra in Australia came third with one month in an Airbnb (£7,939) costing on average £6,769 more than a month’s rent (£1,170).
The insurer goes on to state: “For landlords looking to take advantage of the rise in longer-term Airbnb stays, the most profitable locations are London, Amsterdam and Canberra. In London, the average landlord could make up to £75,912 by letting out their property on Airbnb for a longer-term stay of six months. In Amsterdam they could earn up to £50,202, and in Canberra up to £47,634.”
|
Avg. rent cost for 1 bedroom in city centre (£) |
Avg. Airbnb cost for 1 bedroom in city centre (£) |
Cost difference between 1 month rent vs 1 month Airbnb (£) |
||||||
|
Rank |
City |
Monthly |
3 months |
6 months |
Monthly |
3 months |
6 months |
|
|
1 |
London, United Kingdom |
1,848 |
5,544 |
11,088 |
12,652 |
37,956 |
75,912 |
10,804 |
|
2 |
Amsterdam, The Netherlands |
1,486 |
4,457 |
8,915 |
8,367 |
25,101 |
50,202 |
6,881 |
|
3 |
Canberra, Australia |
1,170 |
3,509 |
7,019 |
7,939 |
23,817 |
47,634 |
6,769 |
|
4 |
Jerusalem, Israel |
1,120 |
3,359 |
6,719 |
7,809 |
23,427 |
46,854 |
6,689 |
|
5 |
Wellington, New Zealand |
1,150 |
3,451 |
6,902 |
7,716 |
23,148 |
46,296 |
6,566 |
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If I were in an area suitable, then I would be changing, this is why the government’s gaze has turned to this very lucrative ,and in some ways damaging area of the market.
Eye watering indeed I am still crying, my Rents for one bed Flats in London for regular letting is less per year than CIA quoted for 6 months would they like to recalculate, incidentally they are underwriters of some of my Policies.
Our Rents are dirt cheap and the Government wants to freeze them, come on now.
No mention of the need to be careful with longer term lets in ABNB needing to be sure that the lessor has an alternative permanent address to avoid accidentally creating a tenancy and the risks associated with trying to remove a non paying tenant. Also the additional costs of cleaning and wear and tear (of which there can be a lot) , and bills which will be included. All that said, in certain areas where there is demand for short let's, it is easy to see the attraction.
More lucrative buta lot more work and significantly higher costs but hey let's run an article using 5 year old economics and pretend turnover is profit
Completely inaccurate article. To start with you are only allowed to do Air B&B in London for 90 days max a year. Yes you’d make a lot of money if you could rent all year but you can’t!
Also there’s no such thing as a free lunch! I’ve got six city centre Air B&B’s and it’s no easy ride. The money is better yes but personally I’d happily go back to BTL if S24 was abolished.
As said previously. You can't compare the rental income when the costs are different. I don't have an air B&B but I had the impression that most were short stays, not long term rental. Two different markets?
Can CIA not do a factual Survey if AirBnB are only allowed to let for 90 days which was my understanding as well, how can 90 days income be expanded to 365 days income when it’s illegal.
What a load of tosh!!!
Next thing is we'll get an article saying that farmers who ditch growing wheat and potatoes and start growing cannabis and opium will be earning eye watering sums!
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