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Any horror stories of noisy guests or rooms being trashed?
Do you need extra insurances and how do you pay tax? Do you use the rent a room allowances?
Do you need extra insurances and how do you pay tax? Do you use the rent a room allowances?
I'd love to know the total revenue declared to the taxman by AirBnB hosts, I bet it's a fraction of reality.
Not planning on dodging any obligations here, it's not entirely obvious what the rules are (well to me anyway)
Might only try it out once or twice, not sold on the idea of sharing my home, but the extra cash would be very useful
we use airbnb to host our holiday barn and cabin,
very good system and works well for us.
We've done it fairly regularly for a couple of years now (with a few breaks). Started out as I didn't have a job to see if we could bring in a bit of extra cash to help with the mortgage (1st time homeowners).
It's been great for the most part, we are in Swindon so mostly 1 or 2 nights with business people. We have a few regulars now who we 'host' off air bnb as we now know and trust them. Have had a couple of odd people- not offensive etc just a bit odd! We have also met tonnes of really interesting people.
My advice is to try it and see- it will very much depend on the price, location and facilities what type of person you get coming to stay.
Airbnb offer insurance packages.
I met their EMEA policy director the other day - he has a tough life working his way through the regulatory systems if every country and local area across the region.
Very interesting story to the way the business has grown and the decisions it has taken along the way.
That said I haven't yet used it to stay anywhere!
OP I wasn't implying anything about you just a gut feel as to what Is likely to be happening. If you are a couple perhaps the one with lower income declares the payments ?
We have used them quite a lot, generally substantially cheaper than hotels especially for example where for my wedding Paris we needed to put up a dozen people, much cheaper in 2 apartments than 6 hotel rooms. Some "landlords" seem to habe a dedicated property they rent out a lot, others its clearly their home and they maybe work away (IT guy we rented from works away 2-3 weeks a month) or they stay with friends when they have a rental, maybe a deal with another AirBnB renter. I stayed in them for a good few weeks in London in between rented flats, very useful and much cheaper than alternatives inc "serviced apartments"
I'd love to know the total revenue declared to the taxman by AirBnB hosts, I bet it's a fraction of reality
Given AirBNB have a record of what you've earned, which HMRC can access; I'd expect pretty good tax compliance.
NB You have a £7.5k tax free allowance for rent a room. https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme
Given AirBNB have a record of what you've earned, which HMRC can access
I don't know for sure but I suspect AirBnB records are held outside the UK and would require international co-operation to force them to give up information which would have to be requested on a case by case basis. Facebook etc have historically been very relucant to comply even in terrorism cases, Apple refused in the case of Pistorious and that was a murder trial. HMRC tracking of buy-to-let in the UK is pretty hopeless although better now as agents have to declare rents for properties they manage.
I wonder if we can ask under freedom of information for total rents declared and tax paid ?
Given you have a £7.5k tax allowance and most Air B&Bers would be below this, I suspect only a small minority are actually liable to pay tax.
We've a few clients who insure their homes with us that let out via AirBnB. All seem very pleased. The majority live in the homes as their primary residence. No horror stories when i quiz them at renewal.
Just make your insurers aware you are letting a room.
As mentioned, air BnB provide insurance but i'm unsure if that's the Public Liability only or covering material damage.
Mate of mine has just started hosting airbnb, she gets loads of business as she has good reviews. Gives them breakfast from the local bakery and fresh coffee/squeezed orange juice.
I would be tempTed if I ever moved back to London as the spare room has an en suite so they would be self contained. Suppose the pricing would be c travelodge premier Inn type per night, c 70 gbp. So if I did 50% occupancy I would equal the long term rental rate, not bad if it meets the rent a room criteria.