Everything you Need to Know about Airbnb in Stoke

Since the launch of Airbnb in 2008, the booming of holiday homes in the UK changed the face of the country's property market, making the buy-to-let business more attractive and emerging as a more profitable business. Although, keep in mind that the success of Airbnb's business depends on understanding the local laws and regulations to avoid legal issues and challenges before kick-starting your Airbnb business venture.

Interested to grow your holiday home portfolio in Stoke? Let's first take a deep dive into:

• Getting to know Stoke
• Why invest in Stoke?
• What is short-term let in Stoke?
• Laws and regulations in Stoke
• Short-term let landlord responsibilities
• Short-term let taxes

Getting to know Stoke

Approximately halfway between Birmingham and Manchester lies a unique city, Stoke-on-Trent, also known as Stoke. The city was formed by combining six separate towns, with Hanley as the city center, famous and creative for creating art from dirt- globally recognized for ceramics and pottery.

But that's not all, the city itself holds its worldwide reputation for its delicacy of oatcakes often served with melted cheese or either a choice of sausage, bacon, and tomatoes. And interestingly, stoke is also well-known for calling strangers "duck". If you ask, why? Well, 'duck' is a classic stokie greeting as a term of respect.

Regardless of the season, Stoke appeals year-round with its historical sites, outstanding museums, beautiful Italian gardens, theme park- home to adrenaline-pumping rollercoasters, Shopping Village, a mile-long lake, and Trentham Monkey Forest.

Overall, Stoke is worth the visit as tourism continuously plays a huge role in contributing to its city economy and local businesses. Apart from that, stoke welcomed 26.6 million travelers in 2019 where 1.5 million travelers stayed overnight or more, according to Economic Impact Assessment, Staffordshire statistics.

Why Invest in Stoke?

Location plays a huge role in Airbnb buy-to-let properties. That said, major cities like Manchester, Birmingham, and Liverpool are only an hour away from Stoke- the heart of the country that significantly captivates property investors with relatively low house pricing and high rental demand.

You should be able to find investment property for excellent value for money that offers a buoyant housing market and a number of desirable areas to choose from, meaning plenty of opportunities, particularly for those looking for real and sustainable financial growth. According to Luxury Travel Blog, Stoke was the 3rd most profitable city to be an Airbnb host with a monthly revenue of £1,030.

Stoke is also one of the top ten areas in the UK for rental yield with almost 8.0% making it the leading buy-to-let hotspot in the country with the combination of house prices, local salaries, and rental returns (Simply Business, 2019).

Moreover, Stoke is also known to be a university city making it plenty of opportunities to tap into the student housing let market. With that being said, it is fair to say, Stoke is changing rapidly and emerging as a rising hotspot allowing property investors to fruitfully grow in their holiday let business venture.

What is Short-Term Let in Stoke?

Any letting of a house or flat or residential tenancy available for any period less than six months, provided with fully furnished amenities is considered a short-term let.

Laws and Regulations in Stoke

Although, Furnished Holiday Lets/Short-term let accommodation does not require a license to run an Airbnb business in Stoke, keep in mind, that buy-to-let properties in Stoke must obtain an HMO license before certain types of property can be rented out in England. Moreover, it is important to be aware of any changes in the short-term let regulations via Stoke's Council website.

Energy Performance Certificates (EPC)

Short-term lets may not require an EPC. Although, keep in mind, that an EPC will only be required according to the guidelines defined by HMRC, where the property is occupied for the purpose of a short-term let in which each guest stays for less than 31 days and is let out for a combined total of four months or more in any 12-month period, and if the guest is responsible for paying the energy costs during their stay.

Fire Safety

• Follow safety regulations in addition the landlord must conduct a fire risk assessment by law
• Provide a smoke alarm on each storey and a carbon monoxide alarm in any room with a solid fuel burning appliance (for example a coal fire or wood burning stove)
• Have access to escape routes at all times
• Ensure the furniture and furnishings provided are fire safe
• Provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)

Gas and Electric Safety

• Ensure the gas equipment supplied is safely installed and maintained by a Gas Safe registered engineer
• Do annual gas safety check on each appliance and flue with a registered engineer
• At least every 5 years, assess and carry out an electrical supply safety test (ECIR)
• The landlord should ensure and check electric devices are in good working condition and safe

Short-term Let Landlord Responsibilities in Stoke

To ensure the guests' well-being, short-term let landlords are obligated to follow the official legal obligations and safety regulations. In addition, Airbnb offers guidelines, that encourage responsible hosts to:

• Provide emergency contact information and instruction in case of an emergency
• Stick to gas safety regulations
• adhere to fire safety regulations and maintain a good working condition fire extinguisher, and fire alarm as well as install a carbon monoxide detector
• Ensure to mark the fire escape routes
• Ensure all electrical appliances are safe and in good working condition
• In line with Health and Safety Executive guidance, the host must provide clean water Ensure to restock first aid kits regularly and let guests know where the first aid kits are located
• Ensure the short-term let is properly ventilated. Moreover, provide safety instructions on how to use service boilers, heaters, and AC units while ensuring it is good working order
• Ensure to check and adhere to occupancy limits
• Point out potential hazards in your listings and provide a safe environment for the guests

Short-term Let Taxes in Stoke

Letting out a short-term that is available for less than 140 days a year is not classed as a self-catering property and is liable to pay council tax.

However, those short-term homes that are let for more than 140 days are required to pay business rates as they are considered businesses. Although keep in mind, that rates vary depending on the location, size, type of the property, and the number of occupants it can accommodate in the property.

Seek professional advice if any doubts as it is good to always stay on top of your taxes!