3 Best Ways To Make Money on Airbnb Without Owning Property in the UK 2024

In the UK, it is possible to make passive income through Airbnb without owning a property. There are three paths that you can take to start your own Airbnb business without being a property owner. The first option is to sublet rental property and the second option is to start an Airbnb property management business. In this article, we will cover how to start an Airbnb business without owning property in the UK and also take a look at the guidelines that you will need to know before starting.

How To Start an Airbnb Business Without Owning a House in 2024

We have searched the internet to find the very best ways to make money on Airbnb without actually owning a property in 2024. There are several options to consider but the best 3 ways include:

1. Airbnb arbitrage - This involves renting a property yourself and asking the landlord if you can sublet it on Airbnb.

2. Airbnb management as a business - Manage Airbnb listings on behalf of property owners who do not have time to take care of bookings and customer service themselves.

3. Airbnb cleaning - Provide cleaning services to hosts in between bookings. You could work on a freelance basis, choosing when and how much you work.

Each Airbnb business idea has the potential to replace a full-time income and could be a great way to leave your 9-5. The easiest Airbnb business idea is Airbnb cleaning because it requires little existing expertise and low start-up costs. If you’re looking for a passive way to make money from Airbnb, subletting a rental property is the best option. However, this business model is also the trickiest to start as it involves working with a landlord to secure properties and build a portfolio.

Also read: 12 ways to make money from your phone

To help you choose the best Airbnb business without owning a property in 2024, we review each business idea below.

How to Make Money on Airbnb Without Owning a Property in the UK

As mentioned above, there are three ways that you can make money from Airbnb in the UK without owning property yourself. In the following sections, we will walk you through the steps of subletting an Airbnb, starting your own Airbnb property management business and earning an income by cleaning Airbnb properties.

Also read: How to Airbnb your house

Airbnb Arbitrage - How to become an Airbnb host without owning a property

One of the best ways to make passive income from Airbnb without owning property is to sublet a rental property, also known as Airbnb arbitrage. This can be a great side hustle for anyone who is able to take out a tenancy agreement and manage an Airbnb listing.

Airbnb arbitrage in the UK is entirely legal however, you always need to double check with your landlord before listing a rental property on Airbnb.

It is possible to make a profit by charging a higher rate for bookings than the total monthly rent. Shorter breaks are often more expensive per night than long-term rentals.

If subletting an Airbnb sounds like the perfect side hustle for you, follow these simple steps to get started.

Also read: How to start a vending machine business in the UK

Step 1: Look for rental properties that can be sublet

The first step to starting an Airbnb rental arbitrage business is to find potential properties that can be sublet on Airbnb.

Popular Airbnb locations include seaside towns, tourist attractions, big cities, and countryside escapes. A good idea is to picture potential customers in your head and try to find a property that would meet their vacation requirements. For example, you could try to find a property that meets the requirements of a busy working professional who is looking for a place to stay whilst they visit a branch of their company or a family that is looking for a summer holiday break.

After deciding what type of property, you want to sublet, you will need to find a landlord who is open to Airbnb hosting.

Not all landlords will allow you to sublet their property on Airbnb. This is because most landlords like to screen possible tenants before allowing them to live in their property.

One way that you could encourage a landlord to allow subletting is to offer them a percentage of the profits that you make from your Airbnb business.

Step 2: Rent out a property

Once you find a willing landlord, negotiate and sign a lease agreement for the property. Ensure that the lease agreement allows you to sublet the property for short-term rentals on Airbnb.

During this stage, you may need to pay a holding deposit for the rental property and also find an affordable energy and water supplier to use. It is also a good idea to set up WiFi if the property doesn’t already offer this.

Some rental properties come with bills included. In this case, the cost of utility bills will be included in the monthly rent. If this is the case, ask your landlord if there is a limit to how much water and electricity can be used each month. You may need to increase this limit or arrange alternative utility bills before hosting on Airbnb so that guests can use the water and electricity freely.

Step 3: Ask Your Landlord to Agree to the Subletting in Writing

To avoid any misunderstandings in the future, it's crucial to have written permission from your landlord to sublet the property on Airbnb. This will protect both parties and create a solid foundation for your hosting business.

Ask your landlord to provide a written agreement to Airbnb subletting. Make sure to store the agreement in a safe space and create two copies for both parties to own.

Step 4: Prepare the property for Airbnb hostingb.

As a tenant, you will not be able to make any major changes to the property. However, you could make the space more appealing by purchasing new furniture, adding luxury amenities, and purchasing extra toiletries and bedding for your guests.

It is also a good idea to give the property a deep clean before listing it on Airbnb. At first, you could easily do this yourself. However, over time you could outsource the cleaning to a professional company.

At this stage, it is a good idea to take photos of the property. Take the photos in natural lighting and make sure to include all the key features of the space so that guests know what to expect when they arrive.

Step 5: List the Property on Airbnb

Now it is time to list the property on Airbnb. Before listing, check for any insurance or licensing requirements that you may need to sort out. We have discussed Airbnb licensing below so scroll down to learn more about the potential licenses and insurance that you may need as an Airbnb host.

How to rent out an Airbnb without owning a property:

The Airbnb listing process is relatively simple.

Upload the photos of your property and then fill in all the required information. Make sure to include as much detail as possible in the property listing. It is also a good idea to mention that the property is a sublet so that guests are aware.

During the listing stage, set the property availability and also outline your cancelation policy and property rules.

Then, sit back and wait for guests to book your space!

Airbnb Management - How to start an Airbnb business without money

Another way to start an Airbnb business without owning property is to become an Airbnb manager.

Airbnb managers take care of listings on behalf of property owners who don’t have time to run an Airbnb business by themselves.

Typically, the duties of an Airbnb manager include: creating appealing listings, taking care of cleaning and property preparation between guests, handling cancelations and booking inquiries, and ensuring that guests have a great experience.

Airbnb managers often earn a percentage of the revenue that is generated from each Airbnb that they manage. By building a portfolio of 10+ properties, it is easy to turn this side business into a full-time job.

Here is how to get started as an Airbnb property manager in the UK.

Step 1: Take a property management course

Most Airbnb managers have some experience or qualifications under their belt. Therefore, a good place to start is taking an Airbnb management course that will teach you everything you need to know.

It is also useful to get some real-world experience within management. However, it is possible to start an Airbnb management business without this experience, as long as you know what you’re doing!

At this stage of the process, get as much experience and knowledge as possible so that you can showcase yourself as an industry expert.

Step 2: Familiarize yourself with Airbnb's policies and guidelines

The next step is to familiarize yourself with Airbnb’s policies and guidelines so that you can offer a seamless experience to your customers.

Airbnb managers should know the Airbnb process of by heart and will often be asked questions by clients and guests about Airbnb guidelines and policies.

You can find an exhaustive rundown of Airbnb’s guidelines on the official Airbnb website.

Another way to improve your knowledge in this stage is to watch YouTube videos, attend seminars and connect with successful Airbnb hosts or managers who may be able to help you.

Step 3: Create a personal website

The best way to establish yourself as a professional Airbnb manager is to create a personal website or portfolio that showcases your skills. This is a great way for potential clients to find you and contact you.

You can create a free website using Wordpress or Wix. On the website, make sure to include details about any training or experience that you have had. Then, you can add client testimonials as you build your business.

When your business is brand new, ask friends and family to leave testimonials on your website. They could testify to your management abilities, professional character, or even your ability to sell.

Step 4: Reach out to potential clients

The next step is to reach out to potential clients. A good way to do this is to find Airbnb hosts on LinkedIn and connect.

You could also use social media to share your knowledge and attract hosts that are looking for Airbnb management services in the UK. Share your website with clients to provide them with more information.

Step 5: Take care of listings, cleaning, and customer bookings

It may take a while to find your first client. When you do, you will need to employ all of the skills that you have learned to manage the Airbnb efficiently.

Create a schedule of tasks that need doing and complete them all to a high standard. Make sure to provide clear communication with the hosts throughout the process to get a good testimonial for your website.

Step 6: Build your professional portfolio

When your business is new, it may take some time to attract enough clients for your Airbnb management business to replace your full-time job.

The early stages of starting your business should be focused on building an exceptional portfolio of satisfied customers that will attract more bookings.

Step 7: Expand and outsource

The best way to grow your business is to outsource tasks to employees. This will allow you to take on more clients at the same time.

For example, you could outsource the cleaning and property preparation to a professional Airbnb cleaner. You could then use the time that you save to work with new hosts.

Airbnb cleaning - Easy way to make money from Airbnb without owning real estate

All Airbnb properties must be cleaned in between each guest. To keep on top of this basic rule, many Airbnb hosts employ Airbnb cleaning businesses to take care of cleaning and housekeeping duties. These businesses travel to different properties and provide professional cleaning services on behalf of the host.

It is possible to start your own Airbnb cleaning business and make money without owning a house on Airbnb in the UK in 2024.

All you need to start is some high-quality cleaning equipment and basic training. The typical services that are provided by Airbnb cleaning businesses include hoovering, making the bed, washing dishes, and cleaning the bathroom. These are all skills that are easy to pick up.

Perhaps the most appealing aspect of this side hustle is that the business has low start-up costs and you do not need to employ any staff at first. However, as the business grows, you may want to employ some trained cleaners who help you to provide great cleaning services.

To start, develop a basic plan, invest in products and training, and register your small business with HMRC.

Once your business is set up, start advertising your cleaning services to Airbnb hosts through social media. One of the most effective ways to find customers is to join Airbnb host groups and forums and advertising your services directly.

Airbnb UK Licensing and Guidelines

Before starting an Airbnb business in the UK, it is important to familiarize yourself with Airbnb’s guidelines and licensing policies.

Here are some key points to consider:

Do I Need a License for Airbnb UK?

In most cases, you don't need a specific license to operate an Airbnb business in the UK. However, it's important to comply with local regulations, including any requirements set by your local council.

Do You Need Council Approval for Airbnb?

Council approval may be necessary in certain areas, so make sure to check with your local council to understand the specific rules and requirements. Some areas may have restrictions on short-term rentals, so it's crucial to comply with the local regulations to avoid any legal issues.

For example, London hosts can only rent their Airbnb for 90 days per calendar year. This rule applies to many tourist areas in the UK to ensure that there are enough houses available for long-term tenants.

Do You Pay Council Tax on Airbnb?

Yes, you will pay council tax on an Airbnb if the business qualifies for business rates in the UK. If your Airbnb business does not qualify for business rates, you may not need to pay council tax.

In the UK, your Airbnb will qualify for business rates if it is available to rent for more than 140 days per calendar year.

What Insurance Do You Need for an Airbnb?

It's highly recommended to have appropriate insurance coverage for your Airbnb business. Standard home insurance policies may not provide adequate protection for short-term rentals.

Consider specialized vacation rental insurance that covers potential risks and liabilities associated with hosting guests.

Airbnb does provide Aircover to hosts that will protect you against some costs related to damage or loss. The Aircover offers up to $3 million in loss or damage protection, $1 million in liability insurance, pet cover, and a 24-hour safety line.

Conclusion

Starting an Airbnb business without owning a house is an excellent way to generate income and participate in the sharing economy. Whether you choose subletting or Airbnb management, the possibilities are within your reach. Remember to conduct thorough research, comply with local regulations, and provide exceptional service to your guests. By following the steps outlined in this article, you can embark on a successful journey as an Airbnb host in the UK.

For more ways to make money in the UK, visit The Rich Girl Guide.

FAQs