Rent to Rent Airbnb - A Comprehensive Guide

Do you want to start making money on Airbnb without actually owning property? Rent-to-rent is the solution you have been looking for. Using the rent-to-rent strategy is a great way of getting into the property investment world without the hefty upfront investment costs. Read on to learn more about the Airbnb rent-to-rent model, what kind of properties are most suitable for renting out on Airbnb, how to propose a rent-to-rent package attractive to landlords, what pitfalls to avoid, and more.

Table of Contents

How to Make Money on Airbnb Without Owning Property
Is Rent-to-Rent Airbnb Legal?
The Benefits of Rent-to-Rent for Airbnb
What Properties Can You Put on Airbnb?
How To Get Started with Rent-to-Rent Airbnb

How to Make Money on Airbnb Without Owning Property

You can offer properties to short-term tenants on Airbnb without owning them as long as you have permission from the landlord or property owner. This is called rent-to-rent, and it’s a popular strategy for budding property investors with little startup capital. To start with, you find a property for rent and approach the landlord directly with a rent-to-rent offer which gives them guaranteed rent for a specific period, usually 3-5 years. You take over the management of this property and rent it out yourself for more than you pay to the landlord, often for short-term lets such as those offered on Airbnb.

Is Rent-to-Rent Airbnb Legal?

Many people hear the word ‘subletting’ and panic, thinking it’s some shady activity that will land them with a financial penalty or even in jail. But subletting is not illegal, except in cases when it is done without the landlord’s knowledge or consent. That’s why it’s always important to have a rent-to-rent agreement with the property owner in which both parties agree to the arrangement.

The Benefits of Rent-to-Rent for Airbnb

Airbnb is a great platform to find short-term tenants for your rent-to-rent property or holiday let. You can offer high-quality properties and serviced accommodation on Airbnb, commanding a premium rental value. This is especially true when your property is in a large city or sought-after holiday destination, has luxury amenities like a hot tub, swimming pool or gym access, or has some unique or unusual feature that makes it more appealing to tourists.

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What Properties Can You Put on Airbnb?

Not every property will be suitable for Airbnb. As well as okaying it with the landlord, you should take a look at other similar properties in the same area on Airbnb to see what kind of prices they are offered for. Obviously, you need to be making enough of a profit to make it worth it, so if there is little demand in the area for Airbnb or people prefer a different type of property, consider a different strategy. You will also need to keep the property in good shape and engage in more maintenance than you might for a regular residential property. Adding high-end furniture, fixtures and fittings will help you command higher rental yields, but this will cut into your profits, so make sure they allow for this. People who stay in Airbnb properties often expect a certain level of service, e.g. 24-hour support, broken appliances to be repaired or replaced immediately, and professional cleaning services.

Some local authorities have rules about how long you can offer a property on Airbnb. In London and other areas, you can only offer an Airbnb for 90 days of the year. This is why it is important to check with the local council in the area before starting the rent-to-rent Airbnb strategy.

How To Get Started with Rent-to-Rent Airbnb

Here are the first steps you need to take to start making money from rent-to-rent using Airbnb.

Find a suitable property. It should be in an area with sufficient demand on Airbnb, so large cities, popular tourist locations or other high-demand areas are ideal.
Approach the landlord or property owner. You could find good properties on platforms like Zoopla or Rightmove, but they will likely be advertised by an agency or property management company instead of the actual owner. You may have more luck contacting the landlord or owner directly if you use other platforms such as OpenRent or Gumtree.
Make them a tempting offer. You could get a discount on the rent they offer by agreeing to give them guaranteed rent for at least three years and taking over the property management responsibilities.
Renovate the property. The better the property looks, the more rent you can charge on Airbnb. Ensure it has a modern, functional kitchen and bathroom, invest in good quality furniture, add a few high-end appliances like a coffee machine or other luxury items, and make sure everything your customers may need such as linens, towels and cutlery are included.
Create your listing. Take some good photos on a bright, sunny day to show off the property to the best possible standard. Respond to queries on Airbnb quickly and professionally, and add as much information as possible to the listing and your host profile on Airbnb to show that you are reliable and trustworthy.

Following these tips can help you start your property investment journey using the highly successful rent-to-rent strategy for Airbnb. Remember to do plenty of research first on the best areas for Airbnb, and think about who is going to be managing the day-to-day running of the property. Doing the cleaning, admin and maintenance yourself is time-consuming but will leave more of the profits for you. If you don’t have the time, property management companies can do it for you, but this will cut into your earnings. You could do it yourself for your first couple of rent-to-rent properties but then transition to a property management company once you obtain more properties. Above all, retain a positive mindset throughout, treating setbacks as valuable learning experiences and coming up with creative solutions to problems. Good luck!

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