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BTL: Can't increase the rent so we'll go Air BNB


maffo

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Recently on some other forums, messages boards and social media platforms I have noticed that the resident BTL gurus have cottoned on to the fact that they can't increase rents to cover their increased costs due to section 24. Apparently this will be resolved by "letting via Airbnb innit, get a normal month's rent in only a week". 

 

Is the demand really there? 🥴

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Just now, Lavalas said:

I was just pondering this question last week whilst on holiday in Doncaster. Yeah the demand is there, for sure for sure.

Doncaster?  For a holiday?  o.O

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Our last landlord/letting agents were trying to increase our rent again this summer in line with 'market value'. We refused as we knew we were moving out soon anyway. They put it back on the market for less than we were paying, back to the 2012 asking rent and it is still empty 3 months later.

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There may well be a right time to do this sort of thing, but it is almost certainly not when all the players are saying they're going to do it.

[being a landlord is all about void management.  Everything else pales into insignificance]

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1 hour ago, spygirl said:

For most IO BTL - Nope.

Besides, an BTL mortgage bans the borrower from short terms lets.

 

Like they'd generally take any notice of the latter.

Most BTL in the worst locations, may pull in some trade at lowest pricing but they'll be surprised what  they have to do to dress the property, get it thoroughly cleaned and prepped every changeover etc.  The shock of having to do some work and put in the effort or spend money to get someone else to do it will deter many and a few crap reviews will destroy demand for a lot of the rest.

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Do I have to have a certain post count for editing typos? 

 

I wonder what the next idea is when AirBnB turns out as duff an option as sticking rents up to cover section 24??

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Just now, maffo said:

Do I have to have a certain post count for editing typos?

I don't think so but there is a time limit. I can't recall exactly what it is, something like 30 minutes.

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1 hour ago, One percent said:

Doncaster?  For a holiday?  o.O

Methinks he's jesting.

I am sure that few people are queueing up to pay top dollar Airbnb rates to spend a week in February in an ex-council terraced house on a deprived council estate.

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1 minute ago, Frank Hovis said:

Methinks he's jesting.

I am sure that few people are queueing up to pay top dollar Airbnb rates to spend a week in February in an ex-council terraced house on a deprived council estate.

Alternatively, he could be a sociologist or anthropologist.  xD

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5 hours ago, dgul said:

being a landlord is all about void management. 

Exactly.  Like trading, avoid a loss as it takes exceptional performance to get it back.

And first you do a risky (tdb) IO BTL, then you double down on a risky AirBnB.  What could go wrong!

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On 14/01/2019 at 18:58, Harley said:

Exactly.  Like trading, avoid a loss as it takes exceptional performance to get it back.

And first you do a risky (tdb) IO BTL, then you double down on a risky AirBnB.  What could go wrong!

Ah well, unlike equities at least with btl you won't have a knee-jerk reaction sell off at the wrong time by watching the markets too much...with btl by the time you have found a buyer for your `asset` the market has changed completely! :-) :-) :-)

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2 hours ago, MrXxx said:

Ah well, unlike equities at least with btl you won't have a knee-jerk reaction sell off at the wrong time by watching the markets too much...with btl by the time you have found a buyer for your `asset` the market has changed completely! :-) :-) :-)

True.  But then instant bug out and no spiv agents (online).  It's all about leverage, which works both ways (tbd).  Otherwise, I can buy a divisable REIT stock, ETF, or trust and get a better yield.  Mostly in commercial property though.

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https://www.dailymail.co.uk/news/article-6612303/Grand-Designs-families-rent-homes-TREBLE-price-similar-properties-Airbnb.html
 

Quote

 

The home was on the market for £6million but didn't sell so was slashed to £2million and then later listed for £3.5million before being taken off the market. 

Now, a stay in the water tower costs £140 per night on Air BnB while the other floors rent for £100.

Mr Osborne said: 'I took it off the market and I'm going to wait until Elephant and Castle is developed. If you come out of the tube now, you think 'where are we?'. 

 

 

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sleepwello'nights

I was looking at Airbnb rates the other week in the West Country. Some are more expensive than hotels. Look at this one in Plymouth https://www.airbnb.co.uk/rooms/31578247?location=West Country%2C England%2C United Kingdom&adults=1&guests=1&toddlers=0&check_in=2019-01-28&check_out=2019-01-29&s=QCL9mbjB.

£395 a night for two people! No breakfast, restaurant or bar. 

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This is also happening in Montreal. AirBnb is getting more and more push-back from authorities. Like so many manias, people joining AirBnB now have missed the boat.

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15 minutes ago, georgist said:

This is also happening in Montreal. AirBnb is getting more and more push-back from authorities. Like so many manias, people joining AirBnB now have missed the boat.

Yep. Edinburgh now has over 7 Thousand :o

5 years ago when it was mostly US based and virtually nobody in the UK was doing it = cash cow.

Now ? I'm seeing places fairly close to the centre of Edinburgh going for £40 for an entire flat outside festival time. What's the point ? 

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2 hours ago, spunko said:

To be fair AirBnB is going to be a great option for these sorts of 'speciality homes' (with the presumption that making it an actual 'holiday home' would require more hoops to be jumped).  

It is the use of AirBnB for your standard flat that won't make sense for the masses (it does for the early ones).

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2 hours ago, spunko said:

Mr Osborne said: 'I took it off the market and I'm going to wait until Elephant and Castle is developed. If you come out of the tube now, you think 'where are we?'

Kabul?

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