How to invest in property for short-term rental
Short-term rentals have become a growing business in the past years. It’s an excellent way for investors to earn more than from an ordinary long-term rental. It takes a bit more work and effort to turn the property into a short-term investment, but it is definitely worth it as, in the end, it will also bring higher income.
Moreover, you don’t have to do it alone, because that’s where the property management services come in and do it for you. This is especially useful for those property owners who are already tight up with other jobs and simply won’t have time to turn their properties suitable for short-term rentals.
So, which is better short- or long-term rental? The benefit of short-term rental is that owners are able to charge a higher nightly rate compared to long-term rentals. Although the occupancy rate might vary seasonally, in the end, short-term rentals tend to bring more income than long-term. But it doesn’t happen overnight, and that’s why investors also need to consider some transition time until more guests will be interested in the property.
If you are planning to invest in the short-term rental business, do your research well first. Start with the legal part of the process. In Australia, the Airbnb business is increasing rapidly, bringing more properties for short-term rental each month. The boom can’t go on forever. Otherwise, hotels and other hospitality places would lose their business altogether. That’s why you always need to consult your local city council before setting up a short-term rental property. In Sydney, there is a limit for the number of nights each host can have guests in their properties, and some buildings also ban Airbnb completely by the vote of property owners. Bear in mind also that you don’t need a permit from the city council if you are only offering accommodation at your property. But if you also serve breakfast as part of your rental, you will need to apply for a special permit as then your place is considered as bed
and breakfast. Some cities might also limit the short-term rental periods to a maximum of one month.
After you have checked the legalities of the property, you can now take your time to research the local market and set realistic goals for your short-term rental. As a short-term rental management service, we regularly update ourselves about the existing trends in the local property market. We know exactly which areas are popular at the moment, what kind of properties the guests are looking for, what are the current trending prices. Also, we keep very detailed information about previously mentioned legalities.
We can help you by giving you an estimate of your earnings from short-term rentals, maintenance costs, and all the other bills that you may experience when going into this business.
There are a lot of benefits to choosing short-term rental instead of long-term rental. You can set up a much higher weekly rate, for example, a long-term rental cost is $1000 per month, but with a shortterm rental, you can set up a week to go at the same price of $1000. Also, the long-term rental fee is a fixed price and normally agreed for a year at a time, which means you can’t adjust the price in the middle of the yearly rental. The short-term property allows you to adjust the price seasonally, which can give you much higher profits during high-season. It also gives you the freedom to decide how often do you want to rent your property. There will probably be less wear and tear on your property as it will be controlled regularly after every guest leaves.
The more disadvantageous side of the short-term rental is that it requires much more work than longterm rental. You will need to be more available, there will be more maintenance and cleaning involved, and you might need to invest a bit more in the beginning too. That’s why many first time investors into this business often hesitate after calculating how much time and effort it takes in the end.
That’s why using short-term rental management service is an excellent choice, because we will make sure you get the best benefits from your property. The agreement between us will be completely flexible and negotiable. If you wish us to do everything, we will do it all for you. If you want us only to manage the bookings, we can do that too. A full package includes everything from Airbnb styling to cleaning and preparing the property for the next guests. We will add value to your property so that you are able to enjoy the best profits from it.
If the location or the size of your property concerns you in the available market, we can also do advanced market research for you, which is easy to do with all the available data that we already have in our hands. But don’t be discouraged if your property is in a small city outside of town. When it comes to Airbnb, distant locations have as much potential as central locations as long as we show the best parts of them to the guests. Not everybody wants to stay in the middle of the busy city, but rather look for places outside of them.
Investing in short-term property rental can be very beneficial and definitely a way to earn better than from ordinary long-term rentals. It would help if you were prepared to give it at least six months for a smooth transition and also considering the seasonal popularity of the property. It’s good to remember that in this way, the usual landlord scene changes quite dramatically, and we can talk more about business than just being a rental property. That’s why we also need to put more effort into it and handle it as a serious business. Investing in the short-term rental is an excellent opportunity if you are interested in making more profits from your property, have more flexibility, and meet wonderful people.
If you would like to learn more about Airbnb property management, or about Airbnb property management companies like HomeHost, click here to schedule a free phone call with us. We’ll chat about how much your property may be worth, how other similar properties in your area have been performing, and why HomeHost has so many great reviews on Google and Facebook.