AirBnb

[errigal]

Looking for some advice from anyone who may have gone down the route of switching from traditional renting of an investment property to AirBnb.

My property is a 1 bed apartment in Dublin city centre and I figure I should get high occupancy.

I am looking into this option at present but not sure of the following:

1) Is this considered a valid reason to give existing tenants notice under the heading of "changing the use of the property"... is a switch from traditional tenancy to AirBnb tenancy a valid reason for giving notice in this regard

2) Can expenses incurred as a result of AirBnb letting be offset against income in the same way as expenses from traditional rental income. e.g. if I used an AirBnb letting agent

I'd also be interested in hearing feedback from anyone who has gone this route and how it has worked out.

 

[dubliner2k15]

1) You can't evict tenants for Airbnb. You could evict them if you or a direct family member was to move in. Even then if you were to relet it within the short term say 6 months and the tenants report you to the RTB for this, you will get a massive fine. You will have to wait for the tenants to move out on their own accord. If they are below market rate, that won't be soon more than likely.

2) AFAIK you can only offset your mortgage interest relief against your income if you have a RTB registered tenancy. You can write off your other expenses like cleaning, repairs etc.

IMO you won't be much better off using an Airbnb letting agent. They will take about 20-33% of the income for subcontracting out the cleaning and sticking a key box on the wall outside (most dont want to meet the guests). I know people who do Airbnb and Dec-Mar can be pretty dead. You will get weekend bookings, but you dont have close to full occupancy during this period. The Summer will be pretty much 90-95% occupancy.

You will only make really great money on Airbnb, you are changing your pricing 2/3 times a week and doing most of the grunt work. Plus your apartment needs to be really high quality to get good bookings. A one bed shoebox apartment built in 1992 and painted once since will not cut it.

 

[errigal]

Thanks for the feedback. Yes, I gave them a good deal 18 months ago when we re-negotiated as they are good tenants - and this is now limited to a 4% increase. Rent has gone up around 300e per month in the meantime. Thought of the AirBnb option but based on your advice above it looks like a non runner. It feels like I have little or no option other than to accept that other landlords with an apartment the same as mine in the same building can get 30% more rent due to no other reason than timing.

Had I been going the Airbnb route I would definitely have been using an Airbnb letting agent.

 

[cremeegg]

In my opinion, income from short term letting to holiday makers is trading income. If that is true, then all expenses of the trade can be offset, including mortgage interest and letting fees, and no registration with RTB is required.

I cannot understand why anyone would use a letting agent for Airbnb, the Airbnb company are the letting agents, what do you think an extra letting agent would do for you. Hiring a cleaner I can understand.