AirBnB Megathread - ALL A&P related Airbnb discussion here please

_kookie

Michael D Not Higgins wrote: »

OP, from this and your other thread, I would suggest meeting with a professional to ensure you get the full rundown on your obligations with regards the legalities and tax issues.

Apart from that, any AirBnB I've been to has operated like this:
The place is only cleaned between lets if you're letting the entire place rather than a spare bedroom. What kind of cleaning equipment? If it's just a hoover and a mop and bucket that you can store in a cupboard, I'd leave it there.
There is no inspection procedure. As far as I'm aware there is an insurance policy which AirBnB provides in case of damage by someone staying.
You will need to sort out your key handover situation. This means either having someone meet them to drop off/collect the key or having a keypad locked box where the key can be stored between lets.

Well I have an accountant to do my taxes. Just looking for others experiences in the meantime.
Tax has got so bad for rentals that I dont think AirBnB could actually be much worse with regard to tax anyway. Add to that the extra revenue that SEEMS to be there to be made - im already booked up for 51 of the next 60 days from Monday and I only put it up last week. At least 50% booked for the 60 days after that, even Christmas, which I never would have thought would be booked in a million years.
The bookings are going so well so far that im thinking of opening the whole of next year to booking now, but i'll wait a while and see.
If I only had only 40% occupancy at the price i am booked for I would be making the same as renting. So so far it looks like a good idea. but it remains to be seen how much of my time it takes up and if it is stressful.
But im pretty sure nothing could take up more time and be more stressful than the tenants who just left the property.
We'l see how it goes.
Would be nice to hear others experiences of it first though.
I read the horror story from the guy in the paper doing AirBnB last week which is a bit scary, but I think he was doing it all wrong in the first place.
Lets wait and see.
I will report back as I learn.

For the handover situation I have arranged that a cleaning lady take over that and clean too. Hopefully I will have no dealings at all when she takes over.
I believe there are agencies that provide that service, but I havent had to look for one yet.

pc7

Will be very interested in your updates poster, Airb&b gets press as a real cash cow (bar recent article, & one today of pervy landlords taping people (it's in the daily mail so who knows)!).
Can I ask the general area/ type of property you are renting? Eg city centre apartment? House in suburb? Understand you may not want to post this but your occupancy seems great already. Best of luck with it.

solargain

I don't leave the cleaning materials there because I find people are inclined to leave & take it all with them and they may not have cleaned the apartment. Eg washing up liquid , full bottle will be gone when you come back

Yes I only clean at the end of the stay

Make yourself a check list for inspecting & for cleaning so you don't miss anything . Keep an infantry of what is in the property , but allow for some breakages like glasses & cups etc

For tax you can write off the cleaning expenses , I just give mine to my accountant at the end of the year , be careful once a property is let you are liable to capital gains on it.

Air Bnb are great to deal with I have been dealing with them for over 5 years

zef

I hope they don't annoy your neighbours with taxis, suitcases, and a lot of extra noise & traffic in your neighbours vicinity.
There are 2 on our small cul de sac of 20 houses- and the residents are getting together to see what can be done about al these total strangers wandering around our quiet residential area. Give me a rented house next door anyday- I didn't buy to live beside a business with high footfall.
(read http://www.airbnbhell.com to have an idea of some the pitfalls.)
If a rented house is a nuisance the LL is responsible, and can be sued for distress, anti- social behaviour etc.
I was kept awake ALL last night by an airbnb a few doors up, having a right shindig, glad I have it recorded.

_kookie

pc7 wrote: »

Will be very interested in your updates poster, Airb&b gets press as a real cash cow (bar recent article, & one today of pervy landlords taping people (it's in the daily mail so who knows)!).
Can I ask the general area/ type of property you are renting? Eg city centre apartment? House in suburb? Understand you may not want to post this but your occupancy seems great already. Best of luck with it.

Its a 2 bed apartment in Swords, Co. Dublin.
Also have a 1 bed there that might be coming up in a few months. Depending on how this goes I might AirBnb that one too.
I dont think i'll be videoing people, so the guests should be safe with that.
1st guests tomorrow night for 4 nights. A French couple with 2 small children.
Dealing with this one myself so i'll let you know how it goes.
In a couple of weeks i'll be handing all the dealings over to the cleaner.

solargain

zef wrote: »

I hope they don't annoy your neighbours with taxis, suitcases, and a lot of extra noise & traffic in your neighbours vicinity.
There are 2 on our small cul de sac of 20 houses- and the residents are getting together to see what can be done about al these total strangers wandering around our quiet residential area. Give me a rented house next door anyday- I didn't buy to live beside a business with high footfall.
(read http://www.airbnbhell.com to have an idea of some the pitfalls.)
If a rented house is a nuisance the LL is responsible, and can be sued for distress, anti- social behaviour etc.
I was kept awake ALL last night by an airbnb a few doors up, having a right shindig, glad I have it recorded.

I would prefer the house be rented through airbnb than to have a house full of students next door to me. The landlord simply has to put it in his rules about noise levels arrivals etc. The beauty of airbnb is you can review the guests and if they get a bad review they will not be taken at any property again

dudara

Here's my experience as someone who has used Airbnb several times

I like it when basic cleaning supplies are left in the apartment. If I dirty something, I will want to clean it. Usually, it's washing up liquid, bleach, cleaning spray, detergent etc. Leave toilet roll also

Airbnb lets are only cleaned after the let is finished

In some cases, I've met the landlord at the property to collect the key. Sometimes I've met the cleaning lady and sometimes, I've called to a neighbour. It's always been clearly laid out. To return the key, I've often been told to just leave it on the table and pull out the door/post it through the letterbox. Sometimes the landlord/cleaning lady will call.

Remember that reviews are everything on Airbnb and it's in the interest of both parties for the arrangement to work.

_kookie

Thanks all for the advice on cleaning etc.
On your advice I have done this
Ive installed a Dyson mini vac in the kitchen anyway.
I have an endless supply of the same cutlery and from experience of renting. I can replace 1 at a time instead of a whole set.
Ive a little dispenser for washing up liquid that can be refilled and a plentiful supply of toilet paper.


So here is my news so far for starting out. Anyone else with tips please feel free to let me know what you do.

So first let is at 7pm today.
Here are some figures if they are any use to anyone.
Obviously there will be more refined figures later but here are rough ones for now.

Im going to assume 80% occupancy for the figures, but im pretty positive it will average out to more than that over the year.

Normal rental €1400 pm at the moment. Expenses would be more than the usual renting expenses I think.
Airbnb €130 pd which at 80% in about €3000 pm. Im sure expenses will be the same or more as renting. But a lot will be covered when I settle on the correct cleaning fee. I think I have it at €30 per stay now. Also going to have things like toilet paper electricity, tv etc that I have to pay myself, well I got freesat so no tv to pay for. Internet has to be paid for too, but there are ways to make that cheaper im told.
If there are more than 3 people it will be an extra €10 per night per person at the moment. That might increase or decrease.
Depending how long someone is staying I'll organise a little welcome pack too. Food water etc.

Ive also been asked about pickup at the airport a lot by people but I cant do that. I might just let cleaning lady make her own arrangements for lifts etc and let her ask for what she thinks is fair for it. Otherwise I just send them a list of bus times and train times. A lot seem to be hiring cars too.

In the end I want to get the most income from expenditure, so it will be a long time figuring out how to weigh up price to charge against work and expenses. For instance if you charge 20% more and have 20% less occupancy that is better because it means less work for the same money. Lets see how it goes.

solargain

Eu30 for the cleaning is too little , you need to allow for laundry detergents , bleach etc Are you sending all the bedlinen , towels etc out to be laundered or doing them on site . If you are doing them onsite you have to wait for washing machines & dryers to finish. Cleaning has to be impeccable that takes a lot more time than you think, especially after the messy guest that doesn't clean the oven , spills milk in the fridge and does not clean up. They are not all good. Cleaning skirting boards around beds that accumulate dust has to be done a lot more often than you would at home means pulling out furniture and putting it back , slows everything down. Allow for paining a lot more often as well. You may be touching up twice a year. Your expectation of 80% occupancy is way too high unless your location is in a tourist trap or near an airport. Air bnb bookings are very slack over the winter , you won't be able to depend on them . I would think 30% would be a realistic figure balanced out all year and that would be doing good. You will find because they are not paying directly for electricity 7 heating they will leave it on and your welcome pack of food will add up to a lot on a lot of short stays. You won't have as much as you think

SmartinMartin

He is beside an airport.

solargain

solargain wrote: »

. I would think 30% would be a realistic figure balanced out all year and that would be doing good.

He has already stated he has nearly 70% occupancy already over the next 120 days which is right over the winter and that's not including more bookings that may well happen.

I agree on things like welcome packs etc, don't waste your time or money on these. People won't expect them and the cost will add up over time. Every euro counts when you are trying to maximise profits.

conf101

Kylee Millions Badminton wrote: »

I agree on things like welcome packs etc, don't waste your time or money on these. People won't expect them and the cost will add up over time. Every euro counts when you are trying to maximise profits.

I'd agree on it being an extra cost so you may want to give it a miss, but as an AirBnB user little touches like that make a huge difference to me. It's hard to know whether there's any long-term benefit in it or not, but small touches like that can be reflected in better reviews which could lead to more business in the longer term.

Hard to know though if it's worth it. At the end of the day it's very unlikely to be the difference in getting bookings or not.

Zzippy

Does changing from a long-term rental to short-term require a planning application for change of use? I'd be worried about possible breach of planning laws or management company agreements...

Zzippy

Zzippy wrote: »

Does changing from a long-term rental to short-term require a planning application for change of use? I'd be worried about possible breach of planning laws or management company agreements...

Technically yes but its almost unenforceable and there is no evidence that people are being followed up for this considering the amount of people that have started letting their house/apartment on airbnb.

_kookie

Kylee Millions Badminton wrote: »

He has already stated he has nearly 70% occupancy already over the next 120 days which is right over the winter and that's not including more bookings that may well happen.

I agree on things like welcome packs etc, don't waste your time or money on these. People won't expect them and the cost will add up over time. Every euro counts when you are trying to maximise profits.

Well first guest is in. Lovely couple with their children.
I will be stopping the welcome packs soon enough. Have to get a few good reviews out of the gate.
After that I can increase the price a bit too.
I'll post more later.

jsd1004

_kookie wrote: »

Well first guest is in. Lovely couple with their children.
I will be stopping the welcome packs soon enough. Have to get a few good reviews out of the gate.
After that I can increase the price a bit too.
I'll post more later.

I have been Airbnb'ing for 4 years. 5 apartments. Never had a bad experience.

Johngoose

Watch out for crazies would be my advice.You will get a few oddballs in any line of work,but I'm sure most users will be fine.

maxmarmalade

I recently moved into an apartment with my girlfriend. Its a 2 bed and costs 1,600 euro per month. We are planning to rent to spare room on Airbnb.

Currently I pay a marginal rate of income tax of around 52%, possibly more. I presume if I was to use my bank account details, Airbnb will release these to revenue and tie it to my earnings, meaning I would pay 52% and more on anything from Airbnb?

My girlfriend earns about 25k meaning she pays a marginal tax rate I would guess around 22%. Can I just change my bank account details to my girlfriends bank account details (on my own Airbnb account which has reviews which I'd like to keep for becoming a host), and the Airbnb earnings will be tied to her salary, meaning we pay a much smaller marginal rate?

Is there any way Revenue can get me for tax (even more so than they currently do) if we have everything in my girlfriends name?

By the way, I have quite a few friends who are using Airbnb, and have never paid a penny in tax, nor do they think they ever will. I presume this actually isnt the case?

athtrasna

Mod note

Suggesting tax evasion is not acceptable on boards. Any posts suggesting this will draw instant sanctions.

RossieMan

Have you been on this forum before?

Noone can answer any of your questions you've posted. Pay your tax like you're suppose to.

RossieMan

RossieMan wrote: »

Have you been on this forum before?

Noone can answer any of your questions you've posted. Pay your tax like you're suppose to.

Well if they are jointly renting the house what's wrong with the gf being the person to rent out the room on Airbnb and be responsible for it?

Baby01032012

Kylee Millions Badminton wrote: »

Well if they are jointly renting the house what's wrong with the gf being the person to rent out the room on Airbnb and be responsible for it?

While no one wants to encourage tax avoidance I personably don't see how the girlfriend claiming all of the income would not be allowable. It would be different if they owned the property would come down to who's name is on the deed or mortgage.

I'd be more worried about short term letting being against the terms of the lease or house rules of the management company.

Jayop

If they're not married and not considered together for tax purposes and it's both of their dwelling then why shouldn't the income from the airbnb be put through her salary?

That's not tax dodging, that's being a small bit clever.

P. Breathnach

If both OP and his GF have signed the lease on the apartment, then it would be difficult to justify treating Airbnb income a belonging solely to one of them. Prima facie it looks like a partnership.

jlm29

P. Breathnach wrote: »

If both OP and his GF have signed the lease on the apartment, then it would be difficult to justify treating Airbnb income a belonging solely to one of them. Prima facie it looks like a partnership.

Except that revenue don't recognise unmarried couples as a partnership. I find it very annoying that I can't claim tax credits for my partner, and vice versa, like our married counterparts. Revenue can't have it every way!

Grolschevik

Probably get a better view from the denizens of the Taxation forum.

Marcusm

Who is entitled to occupation of the apartment?
And
Who is entitled to retain the income from the lettings?

These are the most pertinent questions in determining who should include the income on their tax return.

P. Breathnach

jlm29 wrote: »

Except that revenue don't recognise unmarried couples as a partnership. I find it very annoying that I can't claim tax credits for my partner, and vice versa, like our married counterparts. Revenue can't have it every way!

Of course they do. In business (and in tax matters) partnership has nothing to do with a sexual relationship.

Eric Cartman

Baby01032012 wrote: »

While no one wants to encourage tax avoidance I personably don't see how the girlfriend claiming all of the income would not be allowable. It would be different if they owned the property would come down to who's name is on the deed or mortgage.

I'd be more worried about short term letting being against the terms of the lease or house rules of the management company.

tax avoidance is perfectly legal and should be encouraged at every possible opportunity.

Tax evasion is the illegal one the mod was talking about.
OP , you should be able to avoid tax by doing it all through your OH's details, you may qualify for the rent a room scheme under this which gives you 10k tax free a year (double check this though)

markpb

Eric Cartman wrote: »

OP , you should be able to avoid tax by doing it all through your OH's details, you may qualify for the rent a room scheme under this which gives you 10k tax free a year (double check this though)

I thought Revenue had decided that rent a room didn't apply to short term lettings like AirBnB?