During Wimbledon, many Londoners seek to profit by renting out their homes. Yet, John Severino from GuestReady cautions that London properties face unique limitations. The Deregulation Act 2015 permits renting the entire property on Airbnb for a maximum of 90 days per year in Greater London. Once this limit is reached, Airbnb automatically delists the property. However, renting a spare room has no such restrictions. Homeowners should consider this workaround.
How much can I charge for a spare room in Wimbledon?
GuestReady’s analysis of Airbnb listings revealed interesting findings for Wimbledon. On average, a 1-bedroom property can earn around £106 per night, but one listing stands out at an astonishing £300 per night. Additionally, a private room within a Wimbledon property typically costs around £56 per night.
Do I pay tax on my Airbnb earnings?
John highlighted an important opportunity for property owners in England. Through the government’s ‘Rent a Room Scheme,’ individuals can earn up to £7,500 per year tax-free by renting out a spare room. If the earnings from Airbnb fall below this threshold between April 6 this year and April 5 next year, there is no obligation to report it to HMRC, allowing the full amount to be retained.
However, if the earnings exceed £7,500, individuals must complete a Self Assessment tax return via the government website. It is still possible to participate in the scheme to claim the tax-free allowance, and only earnings above £7,500 will be subject to taxation.
In addition to the limitations and opportunities for renting out properties during Wimbledon, there are a few more aspects to consider:
- Safety and Legal Compliance: Homeowners should ensure that they adhere to safety regulations and legal requirements when renting out their homes. This includes having appropriate insurance coverage, obtaining necessary licenses or permits, and meeting fire and safety standards.
- Managing Guests: Renting out a property, whether the entire home or a spare room, requires effective guest management. Homeowners should consider setting clear house rules, communicating expectations with guests, and addressing any issues promptly to ensure a positive experience for everyone involved.
- Property Preparation: Before listing a property on Airbnb, it’s crucial to prepare it for guests. This involves thorough cleaning, providing essential amenities, and making the space welcoming and comfortable.
- Pricing Strategy: While GuestReady’s analysis provides insights into average prices, homeowners should carefully consider their unique circumstances when determining the rental price. Factors such as location, amenities, competition, and event demand can influence the optimal pricing strategy.
- Marketing and Listing Optimization: To attract potential guests, homeowners should invest effort in creating an appealing listing. High-quality photos, an engaging description, and accurate details about the property and its amenities can significantly enhance the listing’s appeal.
By considering these additional factors, homeowners can maximize their earnings, provide a positive experience for guests, and navigate the regulations and opportunities associated with renting out properties during Wimbledon.
Read more Property Investing News HERE