Earn over an extra £2,700 a month from your spare bedroom – the 5 highest paying UK cities | Personal finance | Finance
Renting a spare room is one of the easiest ways to make money in 2023, as it could bring in a potential income of £2,742 per month on top of your main source of income. A new interactive calculator, developed by Airbnb experts Pikl, can reveal how much extra money people could earn with an Airbnb hustle, from renting a spare bedroom to an entire property.
According to Property Reporter, half of UK households have a spare bedroom and could earn an extra £7,500 a year tax free.
One way to earn an income from it is to list it on Airbnb where it is possible to earn up to £2,742 per month depending on which part of the UK the locals live in.
The interactive calculator has been created alongside an in-depth study of what Britons can earn across the country by renting out their spare room.
The data even revealed that those in St Davids, Wales could earn more in a month than those who shared their home in London.
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People renting a room in this area could pocket up to £92 every night someone uses the room, compared to £78 in London.
Below are the top five UK cities with the most impressive Airbnb profits.
UK city rankings: average spare room costs per night, potential earnings per month
1 St Davids, Wales: £91.40, £2,742.00
2 City of London: £78.80, £2,364.00
3 Westminster: £73.00, £2,190.00
4 Ripon: £70.40, £2,112.00
5 Kingston on Hull £69.80, £2,094.00
Full details can be found at Pikl.com as well as the ranked list of 68 cities according to their potential income.
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Before renting out your property, there are a few things to consider and practical steps to take.
The interactive calculator guides users through a series of practical considerations that will inform their Airbnb revenue forecast.
The average rate per night is the first aspect to assess, followed by the expected number of nights that potential guests expect their room to be booked.
Guests in some of the UK’s major cities can expect consistent bookings, while those in seaside hotspots or rentals near national parks may need to consider seasonality more dependent on weather.
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The average number of nights per stay is the next factor, and it is also likely to vary depending on the clientele expected – from providing one-off accommodation for commuters to accommodating long weekends for stag parties. girlfriends, Christmas parties or summer stays.
Moving on to more practical things, the calculator estimates the average cleaning fee per stay, the current whole-house electricity bill, and the monthly cost of insurance.
Taxes incurred with guest accommodation are then added to the mix, along with property management fee deductions – applicable to hosts who have someone manage the property on their behalf.
Finally, the tool adds the fees that hosts choose, charged as standard by Airbnb.
The resulting figure gives owners a glimpse of how they could get the most out of their property – and it’s a particularly lucrative opportunity given the current cost of living crisis, with many Britons already looking for creative ways to balance their expenses.
Kellie Steed, Mortgage Expert at money.co.uksaid: “One way you can benefit from renter accommodation is through the government’s Rent a Room scheme.
“This allows resident owners to earn up to £7,500 a year of tax-free money, everything after that will be taxed. If you earn less than the £7,500 threshold, you don’t have to do anything and your tax exemption is automatic.
“However, if you earn above this threshold, you can opt into the scheme by telling HM Revenue & Customs on your tax return, this way you can still claim your tax-free allowance.
“You can join the program at any time if you are a resident owner and run a B&B or guesthouse.”
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