It’s no secret that house prices creep up the closer you get to the town and city centres. The more central you desire to be or need to be, the more you have to pay. If you have children and an entire family to home, then you might be looking at some crazy house prices to suit your needs.
The typical three-bedroom home is a favourite for a family with two children or less. However, if you need something larger and you live in a busy urban centre, you’re likely to struggle to find an affordable property with more than three bedrooms.
One option is to move further away from the centre where house prices are more favourable, but if you have your heart set on being in the hustle and bustle then there might be a way to afford your dream location. One way you might be able to afford a larger home in a town or city centre is to let the home partially pay for itself.
The Rent a Room scheme allows you to claim up to £7,500 tax-free per year if you rent out a furnished spare room in your home to a lodger. You can of course earn more than the threshold, but everything above this amount will be taxable by the HMRC.
So, how do you rent out your spare room? You can go down the more traditional route of getting a long-term lodger in which provides less work for yourself and some stability, but if you are looking for more flexibility and higher profits then Airbnb is perfect. Using the Airbnb service, which lets you rent out your bedroom safely, you can create a profitable source of income at home, which can make your dream of a spacious central property come true.
However, if you want to profitably put your guest bedroom on Airbnb, you need to put your business cap on and prepare your home for a positive return. In other words, your Airbnb success is going to be defined by your willingness to invest for your guests. You need to sell your guest room to paying guests so it needs to appeal. You also need great feedback from those who stay to ensure more and more guests want to stay which will ensure your business and profits thrive.
It’s a business, invest in it as such
First of all, you need to run your home as you would a business. While it’s not a matter of increasing your productivity at home, you can apply some of the work-at-home principles to your Airbnb business.
For example, a clutter-free environment is crucial to the successful home-based office. It keeps your thoughts running freely and makes your work more effective. Similarly, your clutter-free environment can also serve as a charming setting for your guest, as it projects an impression of order and clarity for the home.
Additionally, you wouldn’t consider launching a business without professional resources, such as a laptop or even a website. With Airbnb, the site is already built, but professional quality photos can bring the necessary business touch to your online listing.
Inviting people to come into your home as paying a paying guest or lodger means you are making money and therefore running a business. Make sure you are professional both online and in-person.
You'll also need to consider funding your Airbnb property. Perhaps you have a garage that can be converted into a room. Or maybe a loft space or side extension. For this, you may look at taking out a homeowners loan or even a specilaised Airbnb loan.
Airbnb Loans are a financial solution that enables hosts to secure funds specifically for their Airbnb business. With an Airbnb loan, you can access the capital you need to upgrade your current property, invest in additional properties, or enhance the overall guest experience. This can be particularly beneficial if you're aiming to create a luxurious and inviting space to attract discerning guests. By leveraging an Airbnb loan, you can strategically invest in high-quality furnishings, elegant decor, or even expand your property portfolio.
Before considering an Airbnb loan, it's important to research and compare different loan options to find the best terms and interest rates for your specific needs. Ensure you have a solid business plan in place, outlining how the loan will be utilized to generate revenue and repayments. Remember, responsible financial planning is essential when exploring any loan or financial opportunity.
By carefully assessing the potential returns on investment and making informed financial decisions, you can leverage an Airbnb loan to transform your property into a profitable and sought-after destination for guests.
Make the bedroom as inviting as possible
While it might be tempting to keep your costs to a minimum, when you’re letting your bedroom, you want to make your guests feel at home. A comfortable setting is crucial to your success.
Airbnb landlords rely on public reviews to survive; therefore, you can be sure that quality bedding and silentnight mattresses are not a futile luxury. They will keep your room popular and successful online!
As a rule of the thumb, guests prefer double beds with a minimum of 4 cushions. Ultimately, if you want your guests to advocate your space, you need to make it as cosy as possible.
Don't skimp on quality as items won't last long and the quality will diminish quickly. Instead, invest in a few high quality pieces of furniture and bedding that will stand the test of time and be admired by your guests. For bedding, choose high quality gorgeous Egyptian cotton bed linen to give your guests a luxury overnight experience. One of the main factors they will rate you on is whether they get a comfortable night's sleep, so be sure to invest in the bed!
Create an experience
Last, but not least, Airbnb is all about selling an experience. As customers can compare hundreds of different homes at the same time, you need to differentiate yourself rapidly.
A tastefully stylish bedroom can attract attention. For instance, you can create a rustic feel with wood furniture and flooring. For something more sophisticated, you can mix rich fabrics for the curtains and elegant wallpaper.
It’s a good idea to take photos of all the extras you provide, such as a welcome basket and a choice of toiletry products.
Don’t be fooled into thinking that all you need to launch your Airbnb business is a spare bedroom. You need to put your guests’ comfort first if you are going to use your Airbnb revenue to finance your home. From creating a professional listing to building an unforgettable experience, success belongs to those who care.
You can find out more about the government Rent a Room scheme here: https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme