Airbnb has seriously shaken the hospitality industry in the past few years. The “belong anywhere” slogan turned a modest online marketplace for vacation home rentals into a $20 billion worth company in just eight years.
Today there are 60 million active users on Airbnb in over 57,000 cities worldwide and 640,000 hosts who’ve decided to open up their homes. Some treat it is just as a side income and a fun way to meet new people, while others treat Airbnb like a real business– rent and afterwards sub-rent multiple apartment for profit, which can easily go up to $100.000 per year in some lucrative locations like New York City, San Francisco, London, and Paris.
Towergate Insurance has recently created a great infographic, outlining how much you can earn on Airbnb when subletting a one-bedroom apartment for three out of four weeks per month.
Now, about those profits– don’t forget that setting the right price is just part of the deal. You should also take the additional expenses into account such as cleaning, maintenance, occupancy taxes (if those apply in your area), Airbnb’s processing fee for hosts (3% per transaction) and your actual rent if you do not own the space. In fact, you can get covered for up to 81% on average if you list one room in a two-bedroom apartment on Airbnb (definitely more than you could expect from a roomie!).
So what are the most profitable cities for Airbnb in the UK?