How to get Airbnb "approval" for a property for a BTL Mortgage UK

[Tom4728]

Hello community, 

My mortgage advisor has found a mortgage suitable for my needs with the condition that I can provide proof from Airbnb that I am able to rent it out through Airbnb (it is a buy to let mortgage).

I spoke directly to the support, who could not offer any assistance. 

I have spoken to a few mortgage advisors and they have all said it is common practice and something Airbnb should be able to provide. 

Does anyone have any experience with this? 

Thank you,
Tom

[Elisa]

Hi @Tom4728 😊, 

Thank you for asking this in the community center, and I wish you all the best with this new step in your life! 🎉

I’m mentioning hosts from the UK to see if they know anything about this: @Mike-And-Jane0, @Abi010, @Livia120  and @Beverley120 .

Thank you in advance, everyone!

In the meantime, I suggest you take a look at our 👉Local Host Clubs to connect with people from the UK and ask them your question directly.

Warm regards, 🌻

[Helen3]

No Airbnb is a marketing channel for your STR business . Your mortgage advisors are incorrect they don't provide you with evidence of likely bookings/income  @Tom4728 and would have no way of knowing this.

if you are using a holiday lettings company or airbnb management company to manage your Airbnb they might do this.

what research have you done around this in terms of day rates /likely demand to see if this might be viable? Many markets are oversaturated.

[Tom4728]

Dear Helen, 

Many thanks for your message! 

The question was purely around the possibility that Airbnb provides this "evidence" and if anyone has ever heard of this. I also spoke directly to the building society and they confirmed they require this as part of this exact mortgage. So it must be "a thing", just might not be that common. 

I'm confident in my own research (including on day rates and market saturation) and general investment decisions, but thank you for sharing your thoughts regardless. 

Tom

[Helen3]

Yes as I said I understand it's a requirement for your mortgage - your mortgage advisors are incorrect in thinking that Airbnb would provide it .

it would be whatever holiday let or STR management company you would be using to manange bookings who could provide this @Tom4728 

[Livia120]

I would be wary relying fully on Airbnb income to secure a mortgage.  It’s not a constant income in the same way as a secured tenancy fixed for a set period. 

Remember mortgage brokers make their money from selling mortgages so they don’t always care about the outcome… 😬

I am not a financial advisor, nor trying to be but perhaps, if you already were renting on Airbnb for the past two years you could then demonstrate your average income….but to randomly guess, especially in a new property as a new host, could be kinda risky. 

[Livia120]

also … and this is important …There are new(ish) regulations across England, affecting all cities, including London. 

In Oct 2023, the Levelling-up and Regeneration Act 2023 says ALL short term lets (not used as a main residence - so basically, includes many Airbnbs) may require change of use applications… and a short term let property register is being established.

Local councils have the authority to add additional measures. So consult the councils planning department for guidance before going all in…

For example, currently in Lambeth London, hosts need official planning permission if they want to rent properties over 90 nights in a year. (Yes, 90!)… so please check. I applied and was refused. 

…aside from that, of course hosting with Airbnb is fun and very flexible.  Hope you manage to do whatever is best for you.✨✨❤️🏡 

@Elisa - do you have any threads about this? 

[Helen3]

Hi @Livia120 

I don't know of any London local authorities that give planning permission for you to operate outside of the 90 day STR limit to be honest.

But Tom isn't in the UK so our regulations don't apply to him .

i agree mortgage brokers aren't the ones to get advice around under this .

in addition you normally need a holiday let mortgage rather a buy to let mortgage which is designed for long term rentals which offer a secure ongoing income . @Tom4728 

[Helen3]

Sorry I apologise just reread Tom's post and see although he's in Vienna he's looking to buy in the UK @Livia120 

[Tom4728]

Indeed, I am from Yorkshire born and raised, and that's where I will be investing again. 

I am seeking advice from the local authority as well, and of course I know mortgage brokers want to make their money too! 

The fact that: 
- Multiple mortgage providers suggested Airbnb providing this evidence is common practice
- The building society in question confirmed it 

Lead me to ask the original question about Airbnb providing evidence like this. 

Thanks,
Tom

[Helen3]

Okay you and your mortgage advisers clearly know more than we do as experienced Uk hosts - keep asking airbnb for evidence of projected income @Tom4728 

obviously if you as the business owner have an existing Airbnb you can download data on existing income and projected bookings . As someone new to STRs you can't. 

( I am both a landlord with buy to let mortgages and own and manage STSrs). 

[Livia120]

Yep, @Tom4728 so once rented, you can now easily download the annual statement of earning…(or income on whatever dates or listings you wish) so could be an easy way to support a remortgage, but I’m unsure how to prove an income this in advance….if you know a friend/family already hosting in your area, perhaps that could help as a comparison…? 

Maybe, if you just took average Airbnb nightly prices in the area for similar accommodation?  Or ask the broker to send you an example of what previous applicants have included (deleting key information for privacy!) and if you’re already an Airbnb host, include your current data too (length of time as a host, Superhost status, etc) to demonstrate you’re a solid professional.

And perhaps there are some specific mortgage providers who understand how Airbnb works so happy to support hosts..:: ✨❤️ and good luck. 

[Helen3]

What the mortgage company requires is a projected statement of earnings based on the actual property either from a holiday let or airbnb management company as I've already suggested to Alex.

they won't take any informal research from the owner I'm afraid or for other properties . @Livia120 

[Tom4728]

Thank you! 

I'm not located in London and I am in contact with my local authority about this already. 

[Tom4728]

Hello, 

I understand your concerns and have already considered them as part of my business plan 🙂 

Technically speaking this mortgage is "secured" by my actual income, of course the plan is the airbnb income pays off the monthly payments. 

Thank you