Hi there!
I'm new to the Airbnb community and I just have a few questions in regards to the setting up and logistics of hosting.
So, my boyfriend and I are looking at buying a 2 bed flat in Manchester city centre to rent out through Airbnb. We're not sure on whether we will keep it as an Airbnb (see how it goes) or let it out normally with an assured shorthold tenancy agreement. As we aren't sure... would using a buy to let mortgage rather than a holiday let mortgage still be appropriate/possible? I can imagine that many hosts started letting places out with a buy to let initially and then moved over to Airbnb.
We both work during the week so we wouldn't be around for keys/cleaning and general management so we are looking at using a management company. Is it correct that that kind of service will cost 20-25% of income before expenses?
Does tax work the same as it would for a normal BTL? So - 20% of profit after expenses (apart from the mortgage)? We are lower rate tax payers.
How much better are the returns than a normal BTL investment? As with a normal BTL we wouldn't have to pay for council tax/utility bills/cleaning/decorating to a higher standard etc...
What can we expect to make for a 2 bed flat (+ sofa bed) in Northern Quarter with room for 6 people? I've seen a few of the same at £175 per night +cleaning fee and service charge. How much can we expect the flat to be booked every month on average? possibly 10 nights making £1750pcm? I think if we were to rent out with an AST we would be making about £900 but obviously without all the bills/management fees I mentioned above.
Any help or push in the right direction of what to read/research would be massively appreciated.
Thank you 🙂
Danni.