How AirBNB Has Affected UK Rental Markets
AirBNB has become very popular in western countries like the United Kingdom with a corresponding effect on rental markets. AirBNB is being used to sublet properties in the United Kingdom for short periods of time. Through AirBNB, a tenant who has rented a three-bedroom apartment can sublet two out of them without the consent of the landlord or any detailed contract with the subtenant. Moreover, a landlord can also let out his or her property on a short term through AirBNB.
Essentially, AirBNB is a disruptive approach to tenancy that is gradually changing the way tenancy operates. AirBNB has contributed to higher rents in the United Kingdom. For instance, London landlords have been allowed to rent their apartments for ninety cumulative days without the need of obtaining permit from the planning commission. Some Landlords even opt to rent their rooms out for a lesser duration.
Several landlords find AirBNB more lucrative compared to traditional tenancy. For instance, Emily Van Eyssem is a Landlady in London who prefers to let her apartments out through AirBNB. The arrangement fetches her several thousands per month. Emily Van Eyssem lets out 10 properties in London for not more than seven days at a time with a 98 percent occupancy rate. Emily Van Eyssem is just one out of thousands of landlords in big cities in the United Kingdom who have opted for AirBNB.
The implication of this scenario is that as more landlords opt for AirBNB, the number of apartments available for traditional tenancy has drastically reduced. In the big cities of United Kingdom, both professional landlords and residential landlords are opting for AirBNB. Another reason why the practice is popular is that it helps homeowners meet their monthly mortgage payments. Several homeowners in cities like London, Manchester, Glasgow, Edinburgh, Liverpool, Bristol and Cardiff among others now see AirBNB as the perfect solution to making their mortgage payments.
Although several people argue that AirBNB helps create jobs in the economy as more cleaners and workers are employed to clean and maintain residential apartments, the aftermath on rental prices is devastating. From London to Manchester, very few homeowners are willing to put their houses on the traditional rental market. This has forced traditional rental prices to go up. As a matter of fact, AirBNB is a threat to cities. According to urban planners, AirBNB encourages tourism in the center of large cities, this is because the prices of apartments on AirBNB are usually cheaper than what is charged in an average hotel in a city.
The cheaper prices of AirBNB compared to hotels has also increased the demand for AirBNB. Considering the fact that landlords find the arrangement more profitable, several houses have been yanked out of the traditional rental market in favor of the AirBNB rental market. Moreover, several professional landlords now acquire new houses for the purpose of renting them out on AirBNB. All these only contribute to the increase in the rental rate for traditional tenancy. As a matter of fact, AirBNB creates a problem in major cities, if this trend continues unabated, it would be difficult for traditional tenancy to continue in large cities due to exorbitant rental rates.