With a summer of major sport and cultural events around the corner across the UK, wannabe attendees will inevitably suffer from the classic hotel supply and demand troubles, resulting in a desperate search last minute for limited rooms, whilst trying to avoid overinflated prices.
Out of this customer demand and struggle comes the business opportunity of property owners making available the use of spare rooms or even their whole property for a rental fee. The growing popularity of rental booking websites such as Airbnb, HomeAway and Housetrip has made this process almost as easy as ordering a cab to the door.
Whilst guests can enjoy a unique stay, fully embracing the culture and living style of their destination, hosts are realising these guests are willing to pay increased sums to secure accommodation. Take a look at the current example of the Champions League final in Cardiff. We’re already seeing local property owners cash in on the serious demand for accommodation in June.
We searched listings on Airbnb for a one-night stay on 3rd June in Cardiff. Immediately we saw listings where they have included (Champions League) in the title – playing on the demand and likely searcher. Prices for a one-night stay start from £200 for an out of town, single bedroom to over £2000 for city centre based apartments.
But before you start listing your property online and run away with ideas on what to spend your extra cash on, there are two areas that are often overlooked or underestimated.
Generating income from renting out a room or property is basically a business activity and as such there can be tax implications. The Government allows people who rent out a room to a lodger to earn a % of income tax-free. However, these limits are currently being assessed with a view to introducing new tax rules after the general election. It is advisable for anyone wanting to undertake hosting to check their tax status and obligations before renting out their property.
Also, notifying your home insurer of your venture is absolutely essential to ensure damages are fully covered if you ever need to make a claim. Failing to disclose that you have a guest staying on-site can result in your insurer refusing to pay out, even if the guests didn’t inflict the damage themselves. Why, you ask? Insurers will justify their reluctance by claiming that you, the homeowner, withheld vital information from them. Insurers will often coin such circumstances using insurance terminology such as “non-disclosure”.
So if you’re looking to list your property on rental websites as a long-term venture, you will need to consider a specialist home insurer, such as CoverBuilder, who provides cover for home hosting within the home insurance policy.
2 Months Ago, Tuesday, October 10, 2017, 13:34:23