times have changed in holiday rentals
Holidaymakers have more choice these days. Websites like Airbnb, HomeAway (others) give them quick and convenient access to more than hotel rooms, motel and caravan parks.
Many holiday and business travellers prefer to stay in homes rather than rooms, and that means the economics of renting your properties for short-term stays rather than permeant rentals have changed because now, people can easily book your property on a whim at any time of the year.
the pros and cons of holiday rentals for your property
There are many factors to weigh up when deciding if short-term or long-term rental is best for your property and your particular situation. For example, if your property is geared, then the certainty of fixed rental incomes may be vitally important to you. Here are some of the advantages of short-term holiday rentals for suitable properties.
- Potentially more returns than long-term contracts
- Guests pay up-front
- You can use the property your-self
- Upgrade the property for your retirement while guests pay the costs
how do you know if your property is suitable for the holiday rental market
Not all areas are desirable holiday destinations and not all homes are ideal for short-term rental. Here are some thoughts on what makes a successful holiday rental property.
- Is the property in a recognised year-round holiday destination
- Is the climate reasonable for most of the year
- Is there an unmet demand for holiday accommodation
- Is there a sense of exclusivity about your location
- Are there lots of activities for singles, families and groups nearby
- Is there a potential for short-term executive rentals
get income from your holiday home
If you already own a holiday home for your use, then listing the property as a rental can help you tap into the Australian market
where nearly three-quarters of a million people per month are looking for a place to holiday.
A report in the Australian
in January 2018, put Airbnb’s short-term rental revenues at $978 million. This is a rise of 60% from the previous year. Many more sites offer similar booking facilities.
Airbnb had a remarkable 4000% growth in customers using the its services over the previous five years. For Airbnb alone, 6.6 million visitors used its short-term booking facilities.
How is this growth possible? Holiday makers enjoy staying in homes and see massive cost saving compared to staying with their family in expensive hotels.
Holiday rentals for the owner, is a great way to turn the cost of owning your own holiday home into a long-term profit and get other to help you with maintenance costs and upgrade to the interior and exterior of the property for you to enjoy as well.
is it hard for me to operate a holiday rental property
The short answer is yes . . . no . . . maybe!
Successful holiday rental owners treat it as a separate business with all that entails.
But don’t stop reading!
- Legal agreements with renters
- Marketing expenses
- Booking fees
- Listing management and fees on travel websites
- Property maintenance
- Cleaning, provisioning for linen etc
- Dealing with guests and their special needs and requirements.
find a great rental property manager to take away the problems so you can relax
If you like dealing with the minutia of running a holiday business, then doing it yourself is an option, but if you don’t, then choose a great manager with the local knowledge and property rental experience. Let them take on all the worries and do it for you. For example Coast and Country Holidays has been operating continuously in the NSW south coast since 1985.
- A professional property manager will ensure that your property complies with all government rules and regulations
- They will manage all of the advertising and promotions
- They will ensure that proper legal agreements are in place with guests
- They will manage the maintenance and cleaning of the property
- They will deal with the guests, provide keys, answer their questions about the area and what to do there
- If anything goes wrong, the manager will fix it for the guest
- The property manager will take deposits and rent and disburse the money to your bank account regularly and provide accurate and timely reports on revenues and expenses
- They will be able to give you advice on the kind of furniture to put in place and the features that are in demand by guests
- They will advise you on the most appealing forms of presentation, photography and property descriptions that will bring high-value guests to your property
- They will advise on pricing issues so you can maximise occupancy and revenue in the various holiday seasons
- They will have the legal expertise to put in place terms and conditions for guests, binding legal contracts for rentals and deal with the strict data-management and privacy policies now demanded by the authorities.
take expert advice
If you are considering how best to generate revenue from your holiday home or investment property, talk to us. We can offer you an obligation free consultation on the pros and cons of holiday rental vs long-term rental for your property.
Or, if you want to do a quick comparison yourself, we have an online calculator that will allow you to see for yourself the financial comparisons between short-term and long-term rentals.