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Complicated Airbnb

8 replies

Gettingthereithink · 01/10/2024 16:04

I realise this is a very lucky situation to be in. I am just looking for potential pitfalls and advice - my UK born cousin who lives in Australia, has recently come in to lots of money. She is considering buying a property in the UK. She would use it for 2 or 3 months of the year and Airbnb the rest of the year. She has suggested that I manage the Airbnb months and keep any profit. This would allow me to retire, something we have spent months talking around, brainstorming how I can afford it. The cost of the property would be very manageable for her and she would cover any capital costs including furniture etc. I would then cover bills, fees etc from the income. She is prepared to commit to owning the property for 10 years which would take me well beyond state pension age, at which time I would need the help less. We would obviously take legal advice and write up some kind of contract. She feels this does nothing but benefit us both, and I am inclined to agree but I feel quite nervous about it so I'm just wondering if anyone has been in a situation like this or can advise.

OP posts:
BeanBeliever · 01/10/2024 16:23

i think this would be fine - many airbnb hosts employ someone to manage their property - as employees or ‘co hosts’ (latter is an Airbnb term)

are you also in a job?

you need to check:

  • employment contracts
  • tax implications for you both
  • in your shoes I’d agree a distance I’m willing to travel
  • insurance
  • likely income

pitfalls:

  • high costs / a fire or similar putting properly out of action (this is what her insurance is for)
  • lack of bookings /doesn’t cover costs
  • she’s not happy with you (you need to agree standards)
  • problem guests (not that big an issue - I’m a host)
  • wgat happens if you are ill/injured etc (you can find others to host)

none of these are insurmountable-get advice and agreements drawn up so you don’t fall out, otherwise looks a great plan to me

mitogoshigg · 01/10/2024 16:28

I echo to establish what you are agreeing to cover eg wear and tear replacement? Minor damage, annual checks eg gas, licensing fees if applicable in your town. Laundry, cleaning etc take time, what will your minimum stay be?

Hoppinggreen · 01/10/2024 16:31

Who would employ you?
You can't just "keep the profits" from a HMRC point of view. You would need to either be employed by her (tricky if shes non UK) or have your own company nad invoice her for your time

Gettingthereithink · 01/10/2024 17:23

Thanks all. Good to know you're pretty positive. Yes, wear and tear costs would need to be agreed and there'll obviously be tax implications. Will think on..and always good fun looking on Rightmove.

OP posts:
BeanBeliever · 01/10/2024 18:05

Gettingthereithink · 01/10/2024 17:23

Thanks all. Good to know you're pretty positive. Yes, wear and tear costs would need to be agreed and there'll obviously be tax implications. Will think on..and always good fun looking on Rightmove.

OP - I’m sending you a PM

Gettingthereithink · 01/10/2024 18:23

Ok BeanBeliever, thanks, but I don't know where to find it...

OP posts:
BeanBeliever · 01/10/2024 18:56

Click the ‘person’ at the top right of your screen

Complicated Airbnb
BeanBeliever · 01/10/2024 18:59

Hoppinggreen · 01/10/2024 16:31

Who would employ you?
You can't just "keep the profits" from a HMRC point of view. You would need to either be employed by her (tricky if shes non UK) or have your own company nad invoice her for your time

Airbnb lets people co host

you need to decide who owns the listing and who is the partner

it doesn’t need to be the property owner

OP : it might be easier if you own the airbnb listing (ie set it up) and have your cousin as your co host

then the income info will run off your NI number : might be easier for tax and managing it all

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