This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Landlord Insider
On the Landlord Insider blog, you’ll find some excellent resources for landlords of all sizes. From the latest landlord news, to professional advice, tips and guides for landlords, there’s something for everyone. Brought to you by the excellent team behind the Landlord Vision property management software.

Data Reveals Airbnb Lets No Longer as Profitable Post-Covid-19

Back view of stressed young businessman looking at downward red arrow on blurry city background. Decrease, stats and economy concept. Multiexposure

The coronavirus pandemic has decimated the travel industry, with the number of tourists visiting from overseas down by 22%. Experts say tourist numbers could fall even further, by as much as 80% in as the pandemic rumbles on, so where does this leave short-term let landlords?

Top 7 Cities for Airbnb 

Research carried out by Vanquis Bank has found that there are only seven cities in the UK where it’s profitable to let a rental property on Airbnb. Elsewhere, the long-term letting model is more profitable. 

The seven remaining cities where Airbnb is profitable are:

  • Cardiff
  • Belfast
  • Manchester
  • Bath
  • Edinburgh
  • Newcastle

Other major cities, including London, York, and Cambridge are loss makers.

In Cardiff, the most profitable city, short-term landlords can make 86% more by letting their property on Airbnb. There, landlords make on average £3,408 a year from a long-term tenant, but if they use Airbnb to let the property out, they can make £6,344 a year. 

In Belfast, the difference is 39%, with an annual income from a short-term tenant £2,964 a year and an annual income from an Airbnb listing, £4,108. In Newcastle, number 7 on the list, the difference is only 7%, with long-term income £3,057 and Airbnb income £3,276. 

Cambridge is bottom of the list, with long-term tenants paying £5,722 a year compared to Airbnb tenants paying £3,744 a year.

It is worth pointing out that the Vanquis Bank data is based on landlords letting a private room rather than the entire property. For the Airbnb data, it’s based on the room being let for one night a week. If short-term landlords let a room out for more than one night a week, they’ll make significantly more money. 

Travel Restrictions hit Airbnb Rentals

Airbnb rentals are not completely dead, as people are still travelling where restrictions permit. Landlords are having to rethink their advertising model to attract tenants. Some Airbnb landlords are now offering big discounts to longer-term tenants. This is a bid to attract remote workers looking for a change of scenery. 

There is no doubt that the short-term lettings sector is going to be challenging for quite some time. It’s possible there will be travel restrictions for another 12 months or more, particularly for overseas visitors. In some countries, Airbnb landlords with a large number of properties have seen their rental income decimated and their businesses collapse. 

Is it Time to Switch to Long-term Lets?

If you’re a short-term landlord and you are struggling to find tenants, it’s worth doing the maths to see whether switching to a long-term letting model is going to be more financially viable. In cities like London where short-term lets are capped at 90 days a year and rents are much higher, it may well be more profitable to look for a long-term tenant. 

Has your holiday let business hit the buffers because of Covid-19? Are you thinking of switching to long-term lets? Let us know by reaching out on Facebook or Twitter. We’d love to hear more about your experiences.

Read More Like this.

Kat Black

Kat Black

Kat oversees marketing for Landlord Vision and so she curates, writes and edits posts for the blog, she has a wealth of experience in business and project management. Kat has plenty of hands on property experience too, she has worked in property insurance for 8 years and has helped her parents to grow a profitable portfolio.