Homeowners are looking for ways to combat rising energy costs and the cost of living crisis. An unused annex or outbuilding holds the potential to become an important source of passive income for homeowners. This opportunity comes as new research from IW Capital found that 39% of Brits see passive income sources as a way to supplement their 9-5 salary. 
 
David Hannah, Group Chairman of Cornerstone Tax, suggests that by taking the necessary steps needed to make your annex or outbuilding Airbnb ready, property owners have the chance to create a significant new revenue stream averaging at £6,000 a year. This amounts to the equivalent of two months paid salary for the median UK household, and UK hosts on Airbnb collectively earned more than £1.5 billion last year. Homeowners have the ability to decide the nightly price they charge on their property and research from the company showed that half of all new listings received a booking within five days of activation.

As Brits are forced to cut costs due to rising prices, David Hannah expects staycations will remain popular for UK travellers. With major events taking place across the country in 2022, including the Queen’s Platinum Jubilee, Women’s Euro 2022 and the Commonwealth Games, Airbnb hosts could be set for a lucrative year. Hannah states that whilst the demand for UK Airbnb properties is evident, it is critical you take the right steps to prepare your annex or outbuilding before making it available. 

David Hannah, Group Chairman at Cornerstone Tax discusses the steps you need to take when getting a property ready to be an Airbnb: 

“We’ve all seen the rise in the cost of living and energy costs and, during the course of the pandemic, the increase in the trend of staycations. The likely restriction in consumer spending power may well encourage people to carry on holidaying in the UK. You may be facing increasing bills on your property and thinking that your unused annex or outbuilding could be used as an Airbnb for people who want to staycation in the English countryside. So, how do you go about doing it?

“Well, it comes in three stages: the first stage in getting an annex or outbuilding ready is to make sure it’s suitable for people to stay. That means you’re going to have to go through that building and make sure it contains all the basic necessities for living – it’s got to have somewhere to cook, somewhere to bathe, somewhere to go to the toilet and of course, somewhere to sleep. It’s got to be suitable for use as a dwelling. More importantly, if you’re dealing with an annex, you’re probably already up to domestic insulation standards, but if you’re converting an outbuilding you’re going to need to think about insulating it. Making it green, maybe installing a log burner or some other form of heating. But ultimately, what you are going to need, above all else, is planning permission. This could take several months depending on where you are and the state of your property. Let’s assume that you can get all that in place – what do you do next?
 
“You need to make sure that your annex or converted out building has a separate meter, not necessarily a separate account, so that you can recover part of the costs of electricity and heating against the income that you earn from Airbnb. The important thing is to count everything that you use wholly and exclusively in that business and put it into your accounting software and claim it against your income tax – maximising the return. Airbnb, running holiday cottages, that’s a business of holiday letting and you’re going to need to register yourselves with HMRC as having this new trade so that you can do self-assessment returns at the end of the tax year.
 
“When you’ve got all that sorted, you’re ready to run and you’ve got to market it. This means you have to upload it to Airbnb, you might even want to build your own website to increase the promotion. You’re ready now, it’s open and you’ve got guests booked in. It’s a chance to make a separate source of revenue which is extremely useful in these times.”

Leading Leeds-based flooring supplier, Stories Flooring, has recently introduced a brand new exclusive LVT range to their collection. The Lusso range has been designed with style and affordability in mind, helping homeowners to transform their living space on a budget.

The new collection rivals the likes of Karndean and Amtico, yet it is sold at a fraction of the cost. Here, we will explore the new range and how it compares to its more expensive rivals.

Lusso Flooring by Stories Flooring

Lusso is a luxurious LVT collection launched by Stories Flooring. The Lusso Portofino range consists of 20 luxurious wood effect designs, each crafted to the highest standards.

Suitable for both domestic and commercial use, the floors are glued down during installation to produce a stable, long-lasting fit. Despite being one of the newest ranges launched in the sector, it has already started to develop a reputation as one of the best on the market.

So, how does Lusso compare to Amtico and Karndean flooring? Let’s take a look at some of the key differences and similarities between these popular collections below.

Lusso Vs Amtico flooring

The Lusso collection is comparable to the Amtico Spacia range. Both collections feature hyper-realistic designs to give them a high-end, stylish appearance. They have been crafted using eco-friendly processes, and there are plenty of designs to choose from.

While you might expect Amtico floors to offer more durability than the cheaper Lusso floors, surprisingly the latter comes out on top. The Amtico Spacia range comes with a 25-year domestic warranty, and a 10-year commercial warranty. Lusso meanwhile, offers customers a fantastic lifetime domestic guarantee, and a 15-year commercial warranty.

They both come with a water-resistant design, making them easy to clean and maintain. They also require a Gluedown installation method and come with a 0.55mm wear layer for added durability.

As you can see, Lusso provides practically the same benefits of Amtico flooring, yet it is offered at a much cheaper price tag. The Amtico Spacia collection ranges in price from £42.99 to £72.99 per square metre, while Lusso retails from just £16.99 per square metre.

Lusso Vs Karndean Flooring

The Lusso and Karndean LVT flooring collections also have remarkable similarities. They both feature a 0.55mm wear layer, excellent water resistance, and a range of hyper-realistic wood designs. They can be installed in any room and have been created using eco-friendly processes.

Like Amtico, the only real differences between the Lusso and Karndean LVT collections are the warranty and price. Once again Lusso LVT offers an extended warranty in comparison to Karndean, and it comes in at a much cheaper price tag. Customers can expect to pay up to 60% less for Lusso flooring than they would for the same quality Karndean floors.

Conclusion

Lusso is a premium LVT range that easily competes against leading brands such as Amtico and Karndean. It comes with the following features that highlight its exceptional value for money:

• Water resistant
• 0.55mm wear layer for incredible durability
• Underfloor heating compatible
• Gluedown installation
• Striking real wood effects
• Eco friendly design

Customers can view the entire Lusso Portofino range online at Stories Flooring today.

Are you thinking of converting your property into an HMO?

Whether it is a new landlord or a seasoned landlord. They will both agree that the HMO conversion process is a complicated process. No matter how high the cash flow and valuation reward, things can go wrong at any time. It is better to gain some knowledge and experience first.

Take expert advice and make a decision so that later you do not have to face any kind of problem. In this article, I have tried to cover all aspects of HMO services.

Have a look!

HMO conversion and its’ types

It is a legal conversion of a property where three or more than three unrelated tenants can share a house from different households. They can share the common areas like the living room, toilet and kitchen facility. 

What type of property are you going to convert into HMO?

I know that you don’t want to convert your farmhouse in the middle of the countryside into an HMO. This is for obvious reasons. You will not be able to find good tenants there unless they are rich and don’t need to work. You can do one thing. I will give you some suggestions to convert those properties into an HMO. 

You won’t believe that police stations, old factories, fire stations, shops, guest houses, churches, prisons or even GP surgeries can be converted into HMO. The best part is they already have toilets, kitchens, rooms and living rooms. You don’t have to struggle much. You can easily convince the local authority to operate it as HMO. Another way is to buy lets. 

Risks and Rewards associated with HMO

Let’s see the rewards first!

REWARDS

A. It offers more income than normal To Let. It is because the rent is paid per room for the property, not as a whole. If you optimize the space and perfectly design the HMO, you can achieve an increase in income of over 300%.

B. Another advantage is given by the government. If you convert your property into HMO, the government offers a 5 per cent vat reduction. Well, it is a great tax advantage. You are getting a 5% off on your building cost.

C. Due to tenant diversification, you have less fear of tenants paying rent. The chance of moving out of all the tenants at the same time is very less. Thus the cash flow will not stop. 

D. The commercial valuation of an HMO is very high. 

E. It is a great way of repurposing your old property into something that not only gives money but a sense of satisfaction also. 

RISKS

A. It has high entry barriers as it is difficult to buy, comply and find the tenants for the property.

B. Demands and demographic needs change over time. Choosing the wrong area can make things worse.

C. HMO management in London is a complex process and it can lead to the misjudgement of the project timeline. Unexpected delays can cost you more money.

D. It is dangerous territory as it does not have any exit strategy. Make sure you have a backup strategy.

E. Having an inexperienced team may result in the rejection of an HMO plan. 

F. It might be possible that the council does not give you planning permission. It is a tricky task to understand their rules and regulations. So, it’s best to work with experts in property management to operate further. 

HMO BUILDING REGULATIONS

Before starting construction work, it is advisable to consider the building regulations. Sometimes people forget and neglect the key part of HMO conversion. It can affect the layout. There are some rules and standards set for the building and construction work.

These standards may vary by the council. Thus, it is best to talk to an architect or builder so the building and planning permission process does not get hampered. House manage, a property management company in London helped me to meet every standard set by the council. 

Final words

House of Multiple Occupations has seen a rapid increase in popularity over the past few years, mostly around the busiest places of the city centre. It is a great investment in densely populated areas as it offers investment opportunities for landlords. More and more landlords are investing in HMOs because they are getting a high return on investments in these properties.