4 Costly Mistakes New Airbnb Hosts Make

*This is a collaborative post on costly mistakes new airbnb hosts make

Opening your doors to travellers sounds like a great way to make some extra cash from a spare room or a second property. You’ll likely enjoy meeting new people and seeing your bank balance grow.

However it’s easy to get swept up in the excitement and miss the technical details that keep your property safe. If you get the start-up phase wrong you’ll find that the costs far outweigh the rewards.

Not notifying the mortgage company

Most residential mortgages in the UK come with a clause that says you can’t run a business from the property. Some lenders specifically forbid short-term lets. If you don’t ask for permission you’ll technically be in breach of your contract. This will lead to serious trouble if they find out later.

You’ll often find that lenders are open to the idea if you talk to them. It’s worth pointing out that they might charge a small fee or switch you to a different product instead of cancelling your agreement. It’s much better to have that conversation now instead of risking a demand for full repayment of the loan.

Not having specialist Airbnb home insurance

One of the biggest errors is assuming your standard home insurance will cover your guests. Most regular policies will actually be voided the moment you take a commercial booking. You’ll need to look for specific Airbnb home insurance that covers things like fire, flood, and public liability as standard, plus accidental damage by guests as an optional extra.

You’ll also need to check that your policy covers the specific type of property you own. For example while many providers offer cover for standard builds you should check for any exclusions regarding unique properties. Finding a policy that fits your specific needs will protect your finances if a guest causes a leak or a fire.

Not obeying the London 90-day rule

London hosts face strict limits on how many nights you can host. The law states that you can only let out your home for 90 nights in a calendar year. Once you hit that limit the platforms will often automatically block your calendar.

You’ll need planning permission if you want to go over this limit. It’s worth noting that ignoring this rule can result in heavy fines from the local council. You’ll want to keep a close eye on your booking numbers throughout the year so you don’t get caught out.

Not documenting and taking photos of everything

When a guest breaks something you’ll need proof of its condition before they arrived. Many new hosts forget to take detailed time-stamped photos of their furniture and electronics. Without this evidence it’s very hard to win a claim for damages.

To protect yourself from disputes you should keep a digital folder of images showing the state of your property. You’ll need to capture clear pictures of these items:

• Electronic devices like televisions and coffee machines.
• Upholstery including sofas and curtains.
• Floor surfaces and expensive rugs.
• Kitchen appliances and the inside of cupboards.
• The general condition of walls and paintwork.

The bottom line

Starting a holiday let is a rewarding venture if you prepare correctly. By dealing with your mortgage provider and getting the right cover you can build a successful and sustainable business. If you keep these simple rules in mind, it will be much easier to avoid the stress of unexpected fines, costly problems and unpaid claims.