Last updated on June 23rd, 2023
Is Airbnb legal in Birmingham?
Don’t worry, Airbnb is legal in Birmingham! Birmingham is the largest city of the West Midlands conurbation—one of England’s principal industrial and commercial areas—for which it acts as an administrative, recreational, and cultural centre.
Currently, there are 1672 Airbnb listings in Birmingham, with 38% of entire houses earning up to £1,728 a month, 59% managed by professionals, and 41% managed independently. Apart from complete houses, Birmingham’s Airbnb offerings include 33% of private rooms and 28% of apartments(condos). Average Occupancy Rates in Birmingham is 40% and average daily rate is £102. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Birmingham can make up to £23,760 each year.
Short-term rentals policy in Birmingham
– prohibits short-term rentals less than 30 days
– prohibits short-term rentals less than 90 days in low-density residential areas
Short-term rental policy in the UK
– The letting must NOT be for longer than 31 continuous days. A period of longer than 31 days is deemed to be a ‘long’ stay.
– The let property needs to be made available for rent for at least 210 days in a tax year.
– The rental needs to be actually let for at least 105 days of that tax year, for periods shorter than 31 days at a time.
Pros and Cons of running Airbnb
Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.
A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.
Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.
Pros
1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!
2. Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.
3. Earns more money than a long-term rental – It’s simple to calculate: £1500 for a vacation week vs. £1500 per month to rent for a year.
4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.
5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.
6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!
7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!
Cons
1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.
2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.
3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.
4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!
5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.
6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.
Conclusion
If you’ve made it this far, you’re thinking of starting an Airbnb.
We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.
You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as
-which neighborhood to target,
-which amenities are in high demand,
-what is the market’s historical performance,
-what are the occupancy rates of a two-bedroom house,
-should I do a two-bedroom house or a three-bedroom house?
Well, if you are new, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.
