I've been a Airbnb host now for nearly a year and have had over 150 guests in that time. Most guests stay for only a couple of days which suits me fine as the longer guests stay I find they are more likely to hang around the house and eat smelly takeaways in the bedrooms instead of exploring the city.
Weekly and monthly rates
I choose not to offer a weekly or monthly rate for the reason that I don't like longer term guests. I don't offer use of the kitchen or living areas in my house so guests are limited to their bedroom and a bathroom. My ideal guests is a tourist who has come to visit the city of London for a few days and only uses the house for a sleep and a shower. This means I get the house to myself for the majority of the time and wear and tear is kept to a minimum. The downside is a greater turnover of guests means the sheets and towels need changing more often.
Guests will want to arrive in their own time and leave at a time that suits them. I have set my check-out time as 11am and my check-in as 12. I always ask my guests if they can give me a rough idea of what time they will be arriving but I always take their answer with a pinch of salt. Most guests misjudge the amount of time it will take them to arrive at my house especially those coming from the airport. If a guests says they will arrive at 3pm I usually expect them to arrive sometime after 4pm. I'm not out to rubbish my guests but most people don't realise just how big London really is.
I work full time in the city so It's usually impossible for me to check my guests in in person. I'm lucky in that my wife stays at home during the day and is there to meet the guests in person and show them their rooms and explain the house rules. If you don't have a family member to check your guests in then you are going to have to hire someone else to do it. This can be expensive as guests tend to arrive late and what seems like an easy task can mean waiting around, possibly for hours.
I would love to charge more for my listings but I really can't or I will price myself out of the market. Several new listings have opened up in my area and most of them at a slightly cheaper price than me (some as low as £17 a night for a double room!)
. However these listings don't look as professional as mine and my listings have lots of positive reviews so I still get plenty of guests. My experience so far has been that new listings come on at lower prices and some old ones tend to drop off as they no longer feel the hassle is worth it. Airbnb is still new so lots of people would not have tried it yet so the potential for market growth is still huge but we shall see.
Is the money worth it?
Being a host can be a lot of hassle and it's certainly not for everyone. I very rarely have an empty room (the city of London is a popular destination)
so I maximise my earnings potential. For analysis I would say the yield on a airbnb listing is about 5% (a normal buy-to-let might be about 4%)
so not massive. If your looking to get rich using Airbnb then your probably headed for a huge disappointment. I would say however in a good location the money is very steady and it's a great alternative to renting out a room full time to a local.