Scottish homeowners paying off mortgages with holiday rental profits
UK: A recently-published study by HomeAway has shown how many Scottish homeowners are opting to rent out their homes to tourists as a way of making a profit and paying off their mortgages.
The report claims that British homeowners could earn on average £15,150 a year by renting out their homes on a short-term basis through HomeAway’s marketplace.
HomeAway underlined the average earning potential for current holiday rental hosts in various regions in Scotland, which are as follows:
Edinburgh: £186 average nightly rate
Glasgow: £124 average nightly rate
Aberdeenshire: £154 average nightly rate
Dumfries and Galloway: £141 average nightly rate
Fife: £147 average nightly rate
Highland: £147 average nightly rate
Scottish Borders: £138 average nightly rate
Out of those surveyed, 48 per cent of Edinburgh-based hosts said they are using their profits to pay off their mortgage, whilst 35 per cent of those in Glasgow use the additional money to boost their savings and pensions. Meanwhile, 50 per cent of hosts in Aberdeen are using their short-term rental profits to save up for larger investments such as homes and cars.
Other noteworthy statistics from the HomeAway report include:
- 70% of short-term rental hosts in Scotland are benchmarking their properties against others in their local area, and 39 per cent claim to use the prices of local hotels to decide on their nightly rate.
- 13 per cent of Scottish hosts have used an online holiday rental calculator to determine their pricing structure
- 74 per cent say they frequently check prices of other properties in the local area, and of those, 48 per cent then went on to increase their nightly rate
- 80 per cent of owners say they would include free Wi-Fi in their properties and 41 per cent provide logins for Netflix / NowTV platforms
- 37 per cent of Scottish hosts report that they would allow pets to stay at their property
Talking to Property Reporter, HomeAway regional director for UK & Ireland [and Shortyz judge], Karen Mullins, said: “Owning a property, whether buy-to-let or the home you live in, is now an opportunity to tap into an additional income channel. This is no longer seen as the preserve of the elite, but anyone across the country who owns a property.
“It’s great to see so many property owners of all generations doing this to earn additional income to assist in paying off the mortgages, making home improvements and even funding their own holidays!
“With staycations on the rise, the current demand for holiday rental properties in the UK is at an all-time high – property owners are in an ideal position to make financial gains through short-term rentals throughout the year, whenever their home is unoccupied. If this inspires you to investigate letting out your own property to holidaymakers, go to “List your Property” on HomeAway.co.uk and take a look at just how easy it is to use our online calculator to see how much you could potentially make,” she added.
For more information, visit the HomeAway website here.