Succeed With Me. Within this blog I will be sharing my journey to earn enough passive income from different means, until I can become financially self sufficient. As well as my successes, I'll also be sharing my down falls along the way. I'll also be showing you how you can earn your own passive income too!
Firstly, sorry for the lack of posts it has been a real busy few months and my online activity has really dwindled. However, this latest posts is about my progress in the holiday let industry and my time with AirBnb.
So a little break down, as I mentioned in my previous post about my buy to let journey I make a steady £525 net a month from one property, which isn’t bad at all. However after a little research I believed that I could make more from my next one, and that is when I started looking at the opportunities of a holiday let.
I found a fantastic little cottage in North Wales, it over looked the sea and had a balcony upstairs, it was only a small home so I thought the time to renovate it would be slightly less than one of the bigger houses in the cities. I was so surprised at the price of the property, listed at just £79,950 I had to put an offer in… I put an offer in at £71,450 and surprisingly the offer was accepted.
From the outside, the property looks half decent and you can see the potential…
From the inside, you need to have a good imagination…
I like to summarise the property in one phrase “It had carpet in the bathroom… with stains…”.
It was not enough to put me off, as I could see it had real potential, and the location was ideal.
After two months of waiting, I finally completed and had the keys in my hand and I didn’t waste anytime – I got stuck in the same day. It was disgusting, I’d never stripped out a house in such bad condition. There was nothing structural wrong with the property but by god it stank!
It took two months for the full renovation to take place and the last week in July we was open for business. After doing a lot of research I found out that AirBnb was booming at the moment – So, I spent some time to write a half decent description, some nice photos and information. A lot of thought went in to the pricing, as I decided to opt against letting AirBnb decide the price for me.
In a matter of hours we had our first booking, I was nervous as I wasn’t sure if we would meet guests expectations, even though I thought we went above and beyond. We kitted the property out with a new modern kitchen, swanky projector and kept it furniture fitting with the property, it felt luxury if I may say so myself. However I was aware each persons tastes differ from the next.
I decided on buying a smart lock box, so the keys could be collected without me being at the property. Also, it shows information on when they access the property, unique codes etc… it’s pretty clever!
The first guest arrived, however they was Brazilian and ended up walking around and couldn’t find the property. Luckily they phoned me and I guided them to the property. They then entered their unique number on the lock box but were surprised the door wouldn’t open when they entered it. I had to explain the keys are in the lock box and you take them out to enter the property.
I started to panic that I bit more than I could chew, and I would be dealing with every guest, every five minutes – but this has been the only instance. Thankfully, the guest never had anymore concerns and text me to say they loved the property after their stay. They left me a nice five star review on AirBnb too.
Bookings started to come thick and thin, and from the last week of July till the middle of September, I have only had one day whereby the property has not been booked.
In August we made a fantastic return, earning over £2,270, which even if you factor cleaning costs, mortgage and bills then the net profit was still over £1,500.
Now, we’ve had over £4,000 from AirBnb alone, which is pretty good going considering the amount of time we have been doing this. I do expect bookings to dry up in certain months. However, I believe the return is still a considerable amount more than your regular buy to let property. Yes, it involves more work and time, but it’s totally worth it.