Is it still worth it?

Jess4223
Level 3
England, United Kingdom

Is it still worth it?

As a host in London, I’m hit with 45% tax bill on stays, £200+ cleaning per stay, high heating and energy bills and on top of that the uncertainty of having strangers in my home (most of which have been absolutely lovely so far, to add, but you don’t know that till the stay is over).  And on top of that, the nightly rate others are charging in London is just getting lower and lower - way, way below the cost of a hotel stay - so now I get very few bookings anyway.  I got someone today enquiring but asking for a 80% discount, given it was for a last minute stay (5 days notice - hardly that last minute)!  Crazy request considering this was from someone who uses Airbnb a lot, so must have at least a vague idea of all the work that goes into getting a four storey family home converted into an Airbnb each time someone stays (storing personal belongings, getting the house covid-safe, cleaning etc, not to mention finding somewhere alternative to stay myself, often at a cost), plus the taxes homeowners get hit with.  Just want to add, this is my only property (my primary and only home); I’m not a property business - I’m merely just using Airbnb for the original purpose it was created for, helping to pay my colossal London mortgage.

2 Replies 2
Susan1188
Level 10
Marbella, Spain

Sadly we are in competition with first-time renter hosts who have no idea what to charge for all the services we offer. UBER economy.  Guest books your neighbour, with black market cleaning, no host services, no professionalism... but they got 40% cheaper than you

Marie8425
Top Contributor
Buckeye, AZ

@Jess4223 

I would say I treat my Airbnb Rentals as a business like my other businesses.  I calculate my businesses expenses and basically what value do I put on my varios duties'.

I use that number to determine my pricing.  I will review my market's pricing if a minor adjustment I will probably apply.  If major like your describing then you have to make the business decision, will I make cuts to offer that price?  Or do I believe in my business model?  

I have made both choices in my years.  I personally have had more success not jumping in the bargain mart most times.  Yes, I lived through lulls but staying at the right level in not too long actually increased my bookings of better guests.