If you have a spare room, second home or other property, letting it through Airbnb can provide an extra source of income or become a business in its own right.
There’s plenty to sort out before you start taking bookings, though. As well as deciding what to charge and preparing the property for guests, you need to check the local rules, insurance, tax and whether you’re allowed to use the property for short-term lets in the first place.
The rules vary across the UK, particularly regarding planning and licensing, so it’s worth checking the position before you spend money getting the property ready.
Learn how Airbnb works
Failure to understand how the Airbnb business model works, from both the guest’s and the host’s point of view, is where many go wrong.
Learning the ins and outs of Airbnb’s procedures, rules, and etiquette should be part of your initial preparation before setting up.
Spend some time looking at other Airbnb properties in your area too. What are they charging? How booked up do they appear to be? What do guests praise or complain about in their reviews?
This will give you a better idea of the local market before you decide whether your own property is likely to compete.
Registering and listing your property
The first step to becoming an Airbnb host is to register and list your property on Airbnb.
You’ll need to submit photos and write an accurate description of the space, together with details of the facilities and amenities you’re offering.
Guests can then search for properties using criteria such as:
- Price
- Destination
- Availability
- Number of bedrooms and beds
- Amenities
- Parking
- Accessibility
- If you allow pets
Take some decent photographs and make sure the description reflects what guests will actually find when they arrive.
If you have something that makes the property stand out – a great location, parking, outdoor space, or particularly good transport links – make the most of it.
Airbnb fees
When it comes to payment, you decide what to charge for the accommodation, although Airbnb takes a service fee from bookings made through its platform.
Airbnb’s fee structure has changed considerably over the years and is changing again during 2026. Many hosts are moving to a single host fee, rather than Airbnb splitting its service charge between the host and guest.
The exact fee for your listing will be shown in your Airbnb account, so check it when working out your prices.
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You may also be able to charge separately for things such as cleaning, although guests will naturally be interested in the total price of their stay, not simply the nightly rate you’ve advertised.
Security and guest services
Airbnb requires identity verification for hosts and booking guests, although verification isn’t a guarantee that somebody is who they claim to be.
Reviews from former guests also help to build trust and enhance the host’s credibility.
Airbnb handles payments through its own platform, so you don’t have to take card payments or chase guests for money yourself.
Make sure you understand how its payment, cancellation and refund procedures work before you start taking bookings.
Licences and insurance
Insurance
A suitable insurance policy provides protection if something happens to your property or a guest makes a claim against you.
Although you may already have home or landlord insurance in place, don’t assume it automatically covers short-term paying guests. Tell your insurer what you’re planning to do and check whether you need specialist short-term letting cover. Our guide to business insurance covers some of the main types of cover available to small businesses.
Airbnb also provides AirCover for Hosts, which includes Host Damage Protection and Host Liability Insurance.
This is useful additional protection, but it isn’t a replacement for your own insurance. There are limits, conditions and exclusions, so check what is and isn’t covered.
Licensing and planning
The rules depend heavily on where your property is based.
In Greater London, the 90-night rule restricts the use of residential properties for short-term letting to 90 nights in a calendar year unless the necessary planning permission has been obtained.
If you want to go beyond the limit, you’ll normally need to apply to your local authority.
Scotland now operates a mandatory short-term let licensing scheme. You need a licence from your local council if you provide short-term let accommodation in Scotland.
Wales is introducing its own system too. Registration of visitor accommodation begins in October 2026, with a licensing scheme also planned.
Northern Ireland already requires tourist accommodation to be certified by Tourism NI.
For this reason, check the position with the relevant council or authority before taking bookings. Don’t rely on an old article about Airbnb rules, as this area has changed considerably in recent years.
Check whether you’re allowed to host
Local licensing and planning rules aren’t the only restrictions you need to consider.
If you’re renting, it’s unlikely that you will be able to profit from subletting the property without your landlord’s agreement. Check your tenancy agreement and, if in doubt, ask the landlord first.
If you own the property with a mortgage, check the mortgage terms. A standard residential or buy-to-let mortgage may not allow you to use the property for short-term accommodation.
Leasehold properties can cause problems too. Some leases restrict or prohibit short-term letting, regardless of whether Airbnb itself allows you to create a listing.
It’s much better to find out about one of these restrictions before you spend money preparing the property.
Tax on Airbnb income
Income from letting a property is generally taxable, although exactly how much tax you pay will depend on your circumstances.
One important change for existing hosts is that the old Furnished Holiday Lettings (FHL) tax regime has been abolished.
The special tax treatment ended in April 2025, so qualifying short-term lets no longer receive the separate FHL treatment previously available for areas such as finance costs, capital allowances and certain Capital Gains Tax reliefs.
If you’re buying a property specifically to use for short-term lets, this is worth taking into account when you work out whether the numbers add up.
You also need to consider whether your property should be subject to Council Tax or business rates.
In England, self-catering accommodation can generally be valued for business rates where it meets the relevant availability and actual letting tests. Different rules apply elsewhere in the UK.
Keep proper records of your bookings, income and expenses from the beginning.
Work out your costs
It’s easy to look at the nightly rate for a similar property and multiply it by 30 days. In reality, plenty of the money coming in will be spent on running the property.
As well as any mortgage costs, you may have to pay for:
- Airbnb fees
- Cleaning
- Laundry and linen
- Gas and electricity
- Broadband
- Insurance
- Repairs and maintenance
- Replacement furniture and household items
- Council Tax or business rates
- Management fees
Occupancy will vary too. A property in a popular holiday destination may be full for much of the summer but considerably quieter at other times of the year.
Work out what the property needs to earn over the whole year, rather than basing your plans on a particularly good month.
Enhance your host ranking
Listing a property is not enough to thrive in this industry – hosts need to build up a good reputation on Airbnb as well.
Securing plenty of bookings and good reviews isn’t straightforward and takes time. You need to build your credibility by making sure guests are satisfied with the property and the service you provide.
Keep your listing accurate
Make sure your profile and property details are complete and kept up to date.
Guests should know what they’re booking. If there’s no parking, don’t make it look as though there is. If the second bedroom is tiny, clever photography might get you the booking, but it may also get you a poor review afterwards.
Clear check-in instructions are useful too, particularly if guests are arriving when you won’t be there.
Reviews
Reviews are perhaps the most important part of building trust with future guests.
Provide a clean property, decent facilities and a good service, and deal with any problems promptly.
Once you’ve built up a collection of positive reviews, future guests have much more information to go on when deciding whether to book.
There’s nothing wrong with politely asking guests to leave a review if they’ve enjoyed their stay.
Running the property yourself
Another decision is how much of the work you’ll do yourself.
With one local property, you may be happy to handle bookings, guest messages, cleaning and check-ins.
As the number of bookings or properties increases, this can become a significant amount of work. You may decide to use cleaners, a co-host or a specialist short-term letting management company instead.
Naturally, paying someone else to do the work reduces the amount you make per booking.
Before committing to the idea, work out a realistic nightly rate, likely occupancy and all the costs involved. If the property only makes money when it’s occupied virtually every night, you haven’t left yourself much room for quieter periods or unexpected bills.
If you’re approaching Airbnb as a business rather than occasionally renting out a spare room, it’s worth putting together a business plan before spending too much money.
You may also find our guide to self-employed accounts and record keeping useful when you’re getting started.
This guide was originally written exclusively for ByteStart by Adam Kershaw, co-founder of Hopewell, a short-term lettings and Airbnb agent in Bristol. It has been substantially updated by the ByteStart editorial team for 2026.
