UK Airbnb Business Startup Costs: How Much?

Nikka Sulton

UK Airbnb Business Startup Costs: How Much?

This article comprehensively covers key considerations before delving into a UK Airbnb business, costs, and more. Read on for detailed insights! The United Kingdom is renowned for its modern parliamentary democracy and pivotal role in the industrial revolution. As the world’s first industrialized nation, it offers a wealth of historical, cultural, and culinary treasures. The UK’s economic outlook is set to grow by 3.6%, with an anticipated 21.1 million increase in tourist arrivals by the close of 2022.

Notably, UK cities boast the highest occupancy rates, with substantial annual revenue averaging £26,937, as per Airbnb occupancy data. Given these insights, establishing an Airbnb venture in the UK presents a lucrative opportunity for earning in the current year.

Who can become an Airbnb host?

Airbnb is rapidly becoming the favoured option for both leisure and business travellers. It often proves more economical and convenient than traditional hotels, with a broader array of choices and a more authentic experience that enables interaction with locals. Airbnb boasts a whopping 4 million listings in 191 countries and has recently been valued at £31 billion.

Becoming an Airbnb host is accessible to anyone with a space for overnight stays. Whether you’re renting out your entire flat or house while you’re away on vacation, offering a spare room, or providing a unique accommodation like a boat, yurt, treehouse, or castle (as long as you own it or have the necessary permissions), you can join the ranks of hosts.

Steps to Start an Airbnb Business

Availability and Pricing: You have control over when to list your space and set its price.
Listing Process: Listing your space is free, and you can approve potential guests at your discretion.
Pricing Strategy: Research local rates in competitor listings to determine a competitive price.
Consider Hosting Expenses: Account for costs like cleaning, increased utilities, taxes, and Airbnb’s 3% host fee.
Guest Booking Fees: Guests pay Airbnb’s booking fees, ranging from 6% to 12%.
Meet Hosting Criteria: Follow Airbnb’s hosting standards, including accurate listings, clear communication, honoring reservations, thorough cleaning, and providing essentials.
Photographing Your Space: Present a clean and decluttered space in photos, and consider Airbnb’s offer for a free professional photographer.
Descriptive Listing: Highlight unique features, proximity to transport and attractions, and amenities like Wi-Fi, kitchen, cable TV, or outdoor areas.

How Much Does It Cost to Start an Airbnb Business?

The average initial investment for launching an Airbnb venture is around $6,000. This estimate is drawn from sources like SixFiguresUnder, PassiveAirbnb, and BiggerPockets. While costs might differ by location, it’s important to consider various expenses when embarking on this venture. Here’s a more detailed breakdown of potential expenses:

Purchase Costs: Varies
Insurance: Starting from $500
Furniture: $2,000 – $3,000
Utilities and Subscriptions: $40 – $70
Home Setup: Starting from $200
Consumable Goods: Starting from $50
Services (e.g. photographer): Starting from $100

List of Airbnb Startup Costs

1. Room Amenities

Ensuring a homely ambiance, the rented bedroom boasts a range of comforting amenities. Furnishings, procured from Facebook Marketplace, encompass a dining table, 2-seater sofa set, wooden bed frame, and a thrifted gypsy lamp. With an expenditure of approximately $3,000 per two-bedroom unit, the setting is complete. Additionally, several sets of linens, comprising mattress and pillow protectors, cases, washcloths, sheets, quilts, and towels, amounting to about $1,000 per unit, enhance the bed’s coziness.

2. Hardware Essentials

Prioritising guest satisfaction and convenience, especially given the substantial distance from the hometown, entertainment and comfort enhancements were essential. The investments encompassed:

Mesh Wi-fi installation: £300
Smart TVs for each room: £300 – £500
Installation of locks and smart thermostats: £250 per lock | £200 per thermostat

3. Cameras

Professionally installed hard-wired cameras, capable of simultaneous monitoring and recording, incurred a cost of approximately £2,500 per property.

4. Kitchen Utensils

To cater to guests who prefer cooking during their stay, comprehensive provisions were ensured, encompassing:

Mugs, wine glasses, cups, knives, dishes, and various dining utensils
Essential spices (salt, pepper, rosemary, paprika, cinnamon, and thyme)
Ziplock bags, pizza cutter, cutting board, baking bowls, foil, and parchment sheets
Holder for paper towels, corning ware, and spatula rest
Assorted pots, pans, coffee maker, garbage can, and refuse bags

5. Decorations

Adopting a bohemian aesthetic, local dreamcatchers, paintings sourced from the Facebook marketplace, and handmade plant holders were procured, amounting to approximately $100 per room.