Airbnb has become one of the most popular ways for homeowners in London to earn money by renting out houses or rooms. Advertisements from homeowners are published on the platform showing what each property offers via a detailed Airbnb listing. That way you can evaluate options from the most popular to the more simpler ones.
Many guests prefer to choose cohabitation and enter into short-term rental agreements. However, it’s important to know and understand the legalities of Airbnb in order to avoid any legal problems. So let’s take a look at – How does Airbnb work?…
Airbnb: is it legal?
The law generally does not prohibit landlords from renting a house through London Airbnb. However, the government has laws in place to regulate and support this type of activity.
Why Airbnb is so popular in London
London is one of the most cultural capitals of the world. The city is filled with magnificent architecture, incredible performances in theaters and fine cuisine in restaurants. Every year, millions of tourists come to London and the demand for short-term rental housing is huge. Hotel rooms, especially in the city center, are very expensive. Many Airbnb properties are located in central London, which coupled with high demand has led to an increase in popularity of Airbnb.
Do you need permission to rent your Airbnb property?
The UK government has a law in place that requires homeowners to have a license for short-term rental housing on Airbnb. The rule applies to rentals that do not comply with the 90-day rule.
What is the 90-day rule?
In January 2017 Airbnb enforced a new ruling whereby all ‘entire home’ listings across Greater London are automatically limited to being rented out for no more than 90 nights per calendar year. This applies to both 90 consecutive days or 90 days spread throughout the year.
What do you need to do to get a rental permit for more than 90 days?
- Firstly, you will need to submit an application to the local council.
- Secondly you will be required to submit a description of the property along with a term of the proposed lease.
- Third you will need to specify the number of residents.
- And fourthly, you will need to pay a fee of £400.
Is there a tax on Airbnb income?
Landlords are required to pay tax, however, the exact amount depends on the type of short-term lease that is in place. For example, a landlord renting a room out at their main place of residence will not be able to exceed £7,500 pounds of income per year without having to specify this information in the tax return. If the landlord rents out an apartment, they are obliged to provide information such as a brochure and pay tax no matter what income they receive.
If you have any questions about renting out your London property, speak to an Airbnb manager who will be able to help.