Understanding Airbnb regulations in Leeds

Leeds is a vibrant and bustling city in the north of England, famous for its diverse culture and exciting attractions such as the Royal Armouries Museum, the Leeds Art Gallery, and the Roundhay Park. Every year, the city attracts millions of tourists for events such as Leeds Festival and the Leeds International Film Festival. And how does it rank in terms of short-term rentals market?

How much can you make as an Airbnb host in Leeds?

The short-term rental market in Leeds is thriving, with an average room rate of £106 per night and an occupancy rate of 65%. This results in an average revenue of £1,526 per month (Source: Airdna, access: February 2023). If you're thinking of investing in a short-term rental or an Airbnb unit in Leeds, read on to find out more about the regulations that you'll have to know.

What are the main policies for short-term rents in Leeds?

In Leeds, landlords are required to comply with a number of policies related to short-term rentals. 

All short-term rentals must comply with the national housing and health and safety standards, as well as the fire safety regulations. It's also important to note that there may be local council’s regulations in place that landlords must abide by, such as noise control and waste management policies. 

Properties that contain a combination of self-contained flats and flats that require access through a communal area to access amenities may be required to obtain an HMO (Houses in Multiple Occupation) license. Additionally, properties located above commercial premises may also require an HMO license.

It is a legal obligation to have an Energy Performance Certificate (EPC) for each property before it can be advertised for rent. The EPC is valid for 10 years and must be obtained again if the property is sold.

If you have hired staff such as a host, housekeeper, cleaner, or gardener, employers' liability insurance is mandatory.

Mortgage lenders usually require building insurance, and if the property is leasehold, the terms and conditions may prohibit short-term rentals, so it's important to review the lease and consult with the freeholder.

Overall, if you are a landlord in Leeds, you must make sure that your short-term rental property is safe and suitable for guests, while also ensuring that you are in compliance with all relevant regulations.

Does the 90-day rental rule apply to properties in Leeds?

In Leeds, there is currently no specific 90-day rental rule in place for short-term rentals. However, it's worth noting that the local authorities do have the power to impose such a rule if they believe it to be necessary for the well-being of the local community.

What should you know about taxes on short-term property rentals in Leeds?

It's important to note that all rental income must be declared for tax purposes, regardless of the length of the rental period. In the UK, there is a tax-free allowance for rental income of  £7500 per year, after which landlords may be required to pay tax on the additional income.

Regarding council tax, it's important to note that the rules for short-term rentals can vary depending on the length of the rental period. If a property is rented out for less than six months in total in a tax year, it may still be considered a primary residence and be eligible for council tax discounts. However, if a property is rented out for more than six months in a tax year, it may be reclassified as a second home, and the council tax bill may be higher.

It's always a good idea to seek professional advice and to check the latest regulations and guidelines in regards to taxes on short-term property rentals in Leeds, in order to ensure that you are fully compliant and paying the correct amount of tax.

Tax-free allowances for short-term accommodation in Leeds

Airbnb hosts in the UK are eligible for a £1,000 tax-free allowance on their hosting income. However, it's important to note that this allowance cannot be claimed in conjunction with Rent-a-Room relief on the same income. The £1,000 tax-free allowance is known as the Micro-Entrepreneurs allowance, and more information can be found by following this link.

Do I have to charge business rates on my short-term property in Leeds?

The classification of a property as a business-rate property by the government depends on the number of days it is rented out each year. Properties that offer self-catering accommodations and are available for rent for 140 days or more in England, Scotland, or Wales are considered business-rate properties. The amount of the business rate charged is determined by factors such as the size and type of the property, its location, and the number of guests it can accommodate. Additionally, guest houses or bed-and-breakfasts that have the capacity to host more than six guests at once may also be subject to business rates. For further information on this topic, follow this link.

Consider KeyNest for an efficient and cost-effective solution for managing keys and check-ins as a landlord or host in Leeds. 

With KeyNest, you can drop off a key at one of our 4,000+ convenient locations, such as local stores or cafes. Guests, cleaners, or contractors will be able to securely retrieve the key from the KeyNest Point (usually open 24/7). 

You'll receive notifications each time the key is picked up and returned, and you can even set custom check-in and check-out times for added convenience.

 KeyNest has an expanding network of locations in Leeds, likely just a few minutes away from your property, so visit their website at https://keynest.com/ to learn more.