How to set up your business as an Airbnb Host in the UK

Property investment remains popular in the UK. However, there are more ways to monetise property than just buying, selling or becoming a landlord in the housing market. Making income from being an Airbnb host in the UK has grown in popularity over recent years too. More and more people are considering setting up Airbnb hosting businesses than ever before.

What began in the US as a side hustle is now a very popular pursuit among UK homeowners. It is fair to say that hosting an Airbnb is a useful way to generate side income.

The UK's tax legislation can even support this idea of 'side income', with the Rent a Room Scheme allowing eligible Hosts to earn up to £7,500 per year tax-free when renting furnished accommodation in their main home.

If you're considering becoming an Airbnb host, find out the steps you need to take below.

How does Airbnb work?

Airbnb is an app and online platform that connects Hosts to guests, with all bookings handled through their own system.

Hosts can set up their listing, choosing to let an entire property or a room in a shared home. Once your listing is live, you'll also be able to set the availability and pricing. You can even set variations for both, allowing you to charge more on the weekends or during school holidays. You can also determine long-term availability if you intend to leave your property for a while, such as going abroad.

Through their own accounts, guests can then browse listings and book based on pricing and availability.

How do you start an Airbnb business in the UK?

Starting an Airbnb business in the UK is surprisingly simple if you just want to be an 'individual Host' with a single property. All you need to do is create your listing, understand local laws and stay on top of tax regulations.

If you want to become a 'professional Host' with multiple listings, you may need to do further research into your tax liabilities and how you structure your business. You can operate as a sole trader, limited company or partnership, but you may want to speak to an accountant or business adviser for guidance. Hosts will also need to work out their profit margins and costs, with some choosing to employ property managers or use booking software to help optimise pricing and manage the day-to-day running of the business.

Hosts must ensure they have the appropriate licences and consents to be able to list. You'll need permission from your landlord if you rent, while homeowners should check their mortgage terms and speak to their mortgage provider where necessary. Rules also vary across the UK. For example, short-term lets in Scotland require a licence from the local council, while tourist accommodation in Northern Ireland must be certified. Check our guide to legal requirements for Airbnb Hosts in the UK and your local authority for the rules that apply to you.

Insurance is also an important topic to consider. Airbnb provides its own 'AirCover for Hosts', which includes Host damage protection and Host liability insurance. However, consider whether this provides enough protection for your needs and check what your existing home insurance policy may cover you for. Some Hosts choose to purchase an additional Airbnb insurance policy, such as the kind that Pikl provides.

Whichever route you choose, the first step is creating an Airbnb account on the platform itself.

Setting up your Airbnb hosting account

Setting up an Airbnb account is easy. All you need to do is visit Airbnb's website or download the mobile app that suits your device.

When you progress to the sign-up menu, you can use an email address or phone number to create an account. You can also use existing accounts from platforms such as Apple ID or Google. From here, account creation diverges depending on if you want to host or not. Hosts should visit Airbnb's specific hosting page, located here. For more information about signing up or logging into your account, you can also check out our Airbnb login guide.

Creating your first listing

Use the hosting page linked above to create your listing with Airbnb's listing tool. It'll walk you through the process in a step-by-step fashion and will cover everything you need to get started.

Property listing & description

Flats, shared homes, bungalows, boutique hotels and more are all options you can choose.

Airbnb serves a list of options related to your property type, and you have to select one that matches your listing. For example, if you choose 'home' as your property type, you'll see options such as 'cottage', 'townhouse', 'cabin' etc.

Unlike other platforms that only allow you to rent out your entire property, Airbnb allows you to list shared spaces and private rooms as well.

You'll also need to locate and select your property on a map tool.

Guest options

Think about how many guests you want to welcome and how many bedrooms, beds and bathrooms your property offers. Remember, if you're sharing your home with guests, you should only list beds available for their booking and not accidentally include your own!

Amenities

Select any amenities your home boasts, from simple necessities such as kitchens and Wi-Fi through to 'luxury' bonus options like a hot tub, pool and an indoor fireplace.

Photographs

Upload at least five photos of your listing. We'd suggest adding as many as you can and using the highest quality images possible. Taking a good photo of your listing is really important when it comes to maximising your bookings and Airbnb themselves provide tips on how to do this.

Title

Write an eye-catching title for your property. 50 characters is the limit. A title may be one of the first things that draws a guest's attention along with the listing photo. Lead with the feature that makes your property stand out, such as its location, view or a desirable amenity, and avoid wasting space on vague words that could describe almost any listing. Check out Airbnb's listing title tips for more information.

Description

Tell guests about your listing in 500 words or less. Try to include any exciting features or information and also some clear booking rules. Telling a story and putting yourself in the shoes of potential guests may help to make your listing stand out.

Price

Set a specific nightly price. Remember: you can adjust pricing freely later via your Host page. Don't worry if you want to price differently depending on seasons/demand.

Our Airbnb pricing and occupancy guide discusses how you can optimise your pricing strategy to help you maximise your income.

Final questions

Complete a set of confirmation questions about your listing and hosting setup. These can include whether you're hosting as an individual or business, as well as safety information such as permitted exterior security cameras, weapons or dangerous animals at the property.

Once you confirm the listing, you'll have a few individual confirmation questions to get through before your listing is reviewed and then, hopefully, listed live on the site. However, you can't get started yet. You need to head to the pricing page and set fees.

Setting fees

Airbnb's service fee structure has changed for UK Hosts. Airbnb is moving Hosts to a single service fee, typically 15.5%, which is deducted from the Host's price rather than being split between the Host and guest. Service fees are calculated as a percentage of the nightly price plus any additional fees charged by the Host, such as a cleaning fee.

As a Host, you can also set additional charges such as a cleaning fee where available. See our guide to Airbnb fees, and Airbnb fee calculator guides to understand these topics in more depth.

Managing guest bookings

Once your listing is live, it's time to accept bookings! Your listing will be competing against others in the local area, so it's worth looking at them and seeing if there's a way you can make your own property more appealing or competitive on a price-per-night basis.

When bookings come in, it's a good idea to get into communication with your guests early in the booking stage. Once a booking is made, send a quick confirmation email that sets out any house rules, outlines your check-in, and check-out times and offers a friendly welcome. Invite guests to ask any questions they have now, so you've got plenty of time to resolve them.

Remember: guests can only book for dates you list as 'available' in Airbnb's calendar tool. That means you can set specific timeframes aside for cleaning, holidays etc. Try to offer availability at times that will appeal to guests, such as holidays or weekends, as that will increase your chance of receiving a booking.

Airbnb usually releases a Host's payout around 24 hours after a guest's scheduled check-in time, although some payouts may be released later depending on the Host, listing or reservation.

Changeovers

Leave enough time between bookings to properly prepare your property for the next guest. For changeovers, you'll need to decide whether you want to clean the property yourself or hire a cleaner to do this.

When handling changeover directly, clean each room thoroughly, replace used linen and toiletries, empty bins and restock any essential supplies. Using a consistent checklist can help make sure nothing is missed. See our Airbnb cleaning checklist and printable template for a room-by-room guide.

The changeover period is also a good opportunity to check the property for damage or missing items before the next guest arrives. Inspect each room, compare the condition against your inventory where possible and take photographs of any new damage you find. This can make it easier to identify when damage occurred and provide evidence if you need to raise the issue.

How Airbnb Hosts get paid

Now that you've created your listing and attracted bookings, you need to finalise your payment details so you can enjoy the rewards of your hard work. Available payout methods vary, but can include a bank account, PayPal and Payoneer Prepaid Debit Mastercard.

Your payout will combine your nightly price and any fees, minus Airbnb's own service fee and other applicable deductions. After Airbnb releases your payout, there is also a processing period before the money arrives. Typical processing times are 3–5 business days for a bank account, within one business day for PayPal and within 24 hours for a Payoneer Prepaid Debit Mastercard.

Have a look at our Airbnb payout guide to find out more about getting paid by Airbnb.

Remember that you, as the Host, are responsible for tax obligations. That means understanding your tax status and reporting income to HMRC if required. Airbnb have their own page that discusses this topic, but you may want to speak to a qualified expert if you're not sure.

Airbnb hosting tips to help you succeed

Now that you've got yourself set up, here are some top tips for new hosts when managing their first bookings.

Make check-in simple

Give guests clear check-in instructions before they arrive, including the check-in time and how they'll access the property. Many Hosts now offer self check-in using a key safe, smart lock or keypad, while others prefer to welcome guests in person. Whichever option you choose, make the process as straightforward as possible and ensure guests know how to contact you if they have any problems. See our Airbnb check-in guide for more tips.

Top up the basics

Some of the best stays are those that feel as though a Host has thought of everything. For great Hosts, that doesn't even take much effort. Just think of the daily essentials a guest may need and put them in your property. Think about tea and coffee, optional added pillows or blankets, shower gel and shampoo, toothpaste etc.

Aim for Superhost status

The best Hosts can be awarded a special 'Superhost' status by Airbnb. This status gives you added visibility and displays a Superhost badge on your listing and profile. Try to achieve Superhost status quickly and maintain it by following Airbnb's guidelines.

As a final point, remember to sort the insurance before starting your hosting journey. If you have any host insurance questions, get in touch with a member of the Pikl team today.