What is a rentalpreneur?

As if there weren’t already enough made-up variants of the word “entrepreneur” out there, a new one has sprung up. A ‘rentalpreneur’ is someone who makes money from renting out a holiday property or properties, and since the advent of Airbnb, it’s become big business. So big, in fact, that its global value is predicted to rise to $170 billion by 2020.

The rental market, reimagined

Renting out property for short-term holiday lets is nothing new, but Airbnb and similar online platforms have made it easier than ever for anybody to make money from doing it. Often cutting out property management companies altogether, individuals can list rentals directly on Airbnb and manage the bookings themselves.

The industry has boomed to such an extent that there are now events dedicated to helping the rentalpreneur and holiday rental owner community to boost their success. HOST, for example, has a focus on teaching rentalpreneurs about “increasing returns and more profitable management”. So successful are some rentalpreneurs that Airbnb has been restricted or even banned in some cities owing to its monopoly over the rental market.

Why so successful?

The secret to Airbnb’s success is the freedom it offers, which is in keeping with a trend towards flexible income that’s also fuelled the rise of platforms like Uber. In this new style of rental market, owners can decide when they want to let their property and for how long, so they have complete control over the rental process. In many cases the owner doesn’t even have to be present when guests arrive, with many choosing to use key safes so that guests can let themselves in.

‘Rentalpreneurs’ might start off by renting out a single property but then build up a portfolio that’s enough to provide them with a full-time income. Whole properties can be let as holiday rentals, but the Airbnb model has made it possible for people to rent smaller spaces than would traditionally have been let through a rental agency – a spare room or annex, for example.

From attics to shepherd’s huts in the garden, Airbnb and platforms like it offer people the chance to put space to good use in generating income – whether that’s a bit of extra pocket money or a full-blown Airbnb property empire.

Fancy yourself as a rentalpreneur?

The holiday rental market may have changed, but your obligations as a landlord haven’t. If you’re thinking about listing a property with Airbnb, you’ll need to make sure you have the right insurance in place just in case anything goes wrong. Talk to our friendly team about holiday home insurance or give us a call on 0330 022 5503 and we’ll help you get the right cover for your needs, whether you occasionally rent out your spare room on Airbnb or you manage your own full-time Airbnb business.