Investing in a short-term rental can be highly stable and profitable. It’s stable because housing has been one of the most stable asset classes. Also, when you can’t do an Airbnb anymore, you can still rent it out to a long-term tenant with a lower yield. It is highly profitable because the monthly cash flow from short-term rentals typically is double the amount of traditional rentals. The true profit from home investing comes from capital appreciation and cash flow from your rental. Between 1850 and 2015, globally, the average home value appreciated at 5.5% annually. If your short-term rental yields 3% of your total initial investment, your investment’s annual return is 8.5% before taxes are considered. Without further ado, let’s see if Reigate and Banstead is good for Airbnb.
Maybe, it’s profitable to Airbnb because the average net rental yield for a one-bedroom property is 6.9%.
The national median net short-term rental yield is 5.4% in the UK. For more context, a traditional rental can typically yield 2-4% if you don’t have to pay a mortgage interest. A typical 1 bedroom listing in Reigate and Banstead is booked for 299 nights a year, with a median occupancy rate of 82% and an average daily rate of $126. Guests from London make up the majority of the Airbnb bookings here. In Reigate and Banstead, A typical host income (annual revenue) was $38,150 in 2023.
Best Areas in Reigate and Banstead for Airbnb
Are you wondering where to invest in Reigate and Banstead? Look no further! Here are 10 areas travelers often search for. You can find the short-term rental statistics of all of these neighborhoods from Airbtics! Check out which neighborhood has the highest rental demand. 🚀
Box Hill
Priory Park
Reigate Castle
Banstead Woods
Walton Heath Golf Club
Reigate Hill
Margery Wood
Nork Park
Earlswood Lakes
Redhill Memorial Park
Okay, you might wonder about more specific data. For example, how much can an average listing with 2 bedrooms and a pool make? Or, what is the seasonality in booking? When is the peak month?
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