Families looking for rental properties should turn to Airbnb for long-term rentals because there are so few properties available, realtors have revealed.
Money Mail has received messages from brokers and renters to Airbnb hosts about renting out their vacation rentals for up to a year.
And realtors say they’ve seen desperate renters track down Airbnb hosts on Facebook while looking for a place to live.
The number of available homes has fallen as landlords have left the market
Landlords have left the market en masse because of sky-high costs and stinging tax increases.
As a result, the number of homes for rent has plummeted. Real estate broker Zoopla said last week that there were a third fewer rental properties available compared to 18 months ago.
At the same time, the number of households looking for a rental home is increasing.
Realtors say rising mortgage rates are forcing some homeowners to return to the rental market because they can’t afford to re-mortgage.
Meanwhile, others are renting longer before buying because they wait to see what happens with shaky real estate prices, and some simply can’t buy because of a lack of homes for sale.
Sarah Bush, of Cambridge real estate agency Cheffins, says the city’s long-term rental market for Airbnb has “bigged” in recent months.
“Cambridge’s strong Airbnb market is currently fueled by long-term renters who can’t find a traditional host,” she says.
“Rentals go online within days of being posted, we do bulk viewings every 10 to 15 minutes, and 70 percent of viewers make offers.”
London has a rule for Airbnb hosts that prevents them from renting out their homes for more than 90 days a year, but in the UK people are allowed to stay as long as they want
Renters have a number of protections through traditional renting that they do not have with Airbnb. For example, even in a “no-fault eviction,” where landlords can evict tenants for no specific reason, they still have to give two months’ notice.
But if an Airbnb guest stays longer than welcome or causes problems, such as throwing a party, there is no obligation to continue hosting. The rules differ between England, Scotland, Wales and Northern Ireland.
Ms Bush says the lack of available housing means landlords are pickier and choose to hire those willing to rent longer, leaving tenants who need more flexibility out in the cold.
‘Cambridge is a fairly temporary region, so there are a lot of people coming over who want to stay for less than a year, including families,’ she says. “It used to be possible to rent that way, but now those people are turning to Airbnb – and are willing to pay a lot more to guarantee a nice home.
“People are reaching out to Airbnb hosts and asking to make some sort of deal for the nightly rate if they agree to stay long-term, and people are reaching out to us and asking for help with this.”
London has a rule for Airbnb hosts that prevents them from renting out their home for more than 90 days a year.
But in the rest of the UK, there’s nothing stopping people staying in an Airbnb for as long as they want.
Dawn Hardiman, rentals coordinator at Richardson & Smith in Whitby, North Yorkshire, says the mine just outside Whitby attracts workers in need of somewhere to stay and Airbnb is bridging that gap.
“People go directly to Airbnb hosts to request long-term stays and they also come to us, then go to Airbnb if we can’t find them anywhere,” she says.
‘There are simply not enough rental properties here.’
Ian Wyn-Jones, a North Wales estate agent, says: ‘With the massive lack of available rental properties at the moment, we are sending letters to Airbnb owners – as many estate agents do – encouraging them to consider long term . Rental.’
Landlords are being hit by a number of rising costs, including higher mortgage rates.
Meanwhile, stricter energy-saving measures will soon be introduced and mortgage interest deduction will be completely abolished in 2020.
Mr Wyn-Jones says a local landlord with more than 50 properties in North Wales has decided to sell his entire portfolio.
“There simply aren’t enough protections for landlords, so there’s no reason for them to stay,” he says.
As a result, rental prices skyrocketed. A two-bedroom flat worth £600 a month a few years ago is now going for £1,000.
“Now that people are turning to Airbnb, they’re going to pay even more.”
Last year, rents in Great Britain fell by 9.8 pc. increased to £1,184 per month, according to HomeLet.
But experts warn that renters will end up paying much more through Airbnb than through traditional renting.
“Airbnb owners can typically earn more from vacation rentals and don’t want to lose their income, so they won’t be willing to rent that cheap,” says Wyn-Jones.
According to Zoopla, the average monthly rental income in Manchester is £977, while a typical nightly price for an Airbnb in 2021 was £89.54, according to All The Rooms.
Based on these calculations, a typical tenant in Manchester would pay around £11,724 a year, but through Airbnb they would pay £32,682 for 365 nights – almost £21,000 more.
However, it is likely that those who turn to Airbnb will negotiate a much more reasonable price.
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