Everyone wants to sell their property quickly and easily, but this isn’t always a possibility. In London, it takes an average of eight weeks to find a buyer. Between finding the right buyers and waiting for the property to complete, many sellers end up with a significant amount of wasted time. For landlords, this often creates a void period where long term tenants have left for a sale, but the property sits unoccupied while the sale takes place.
Utilising Airbnb might be the ideal solution. Occupancy rates have never been higher for Airbnb landlords in London, as rates neared 97% this December, and most properties are let 73% of the time. By letting out your property whilst you wait for buyers, you could earn an average of £135 per night. Even if you let your home out twice a week, around property viewings, that’s a net profit of over £1,000. The possibility for profit is far greater: net incomes for Airbnb properties have averaged £3,000 per property in December 2018.
Why isn’t this more popular with home sellers?
The truth of the matter is that the houses of many home sellers are not equipped for Airbnb. In most homes that are sold, features like furniture are simply non-existent. At Portico, we are helping to maximise profits for our landlords, by making Airbnb services during sales or between long-term tenants possible. Our account managers will manage the property for Airbnb guests and viewings. For a small fee of £150+VAT, we will even source appropriate furniture for the property, and provide the special touches that make all the difference.
We’ve trialled this method finding excellent results with a home on the market, with Portico, in Battersea. The four-bedroom home was freshly decorated and fully stocked with everything a short-term tenant might need. Your Portico Host account manager is available to handle any requests from guest, during this process.
The home has been on the market for six weeks, and has achieved an occupancy rate of 71%. The secret to this property’s success? We took the property over completely, finding furniture, decor, and making the home appealing to prospective, short-term tenants.
So, what do homeowners need to know about listing their properties on Airbnb when they’re trying to sell? Our London Portico Host manager, Pushkar Patel, gives his five top tips below:
1. Assess your property carefully
When you’re thinking of putting your home on the market and on Airbnb, you’ll need to think about how you manage viewings and guests. At Portico, we specify on the online listing that the property is on the market, and give Airbnb guests plenty of notice should a viewing be scheduled during their stay.
2. Don’t underestimate the power of good management
A professionally managed property is more likely to stay in good condition for viewings, and ultimately, homeliness will make it easier to sell.
3. Renting furniture is a great short-term solution
If you’re only going to use your home as an Airbnb, don’t invest in new furniture. Rental furniture works perfectly and you won’t need to re-home a sofa after you sell your property.
4. Price fairly
The average property in London rents for £135 per night, if the guest has access to the entire home, but this varies across the boroughs. Conduct some research to see what other, similar homes in your area are charging per night.
5. The little things make a big difference
We have plenty of properties on our books, but the ones that are most popular are the homes that go the extra mile. Putting paintings on the wall or a vase of flowers on the bureau can mean all the difference when it comes to positive reviews not only from Airbnb guests but prospective buyers.
For more information on our lettings packages or Portico Host packages, please call 0207 099 4000. Find out the rental value of your home or value of listing your property on Airbnb by visiting our !!!!!!Instant Valuation tool.
All data is sourced through Portico and AirDNA, December 2018.