Airbnb Property
Management Richmond

Different areas tend to attract different interests or clienteles. Given that Covid-19 has dramatically changed people’s renting behaviours, local/interstate short-term renting has since picked up enormously due to limited overseas travelling options. Residential suburban areas tend to attract longer stays and are less impacted by peak seasons, which in turn bring stable income to property owners. Touristy areas like city downtown area or holiday home areas along the coastline have constantly been attracting short stays at a higher nightly rate.

As long as your property is located in the convenience of public transportation, shopping districts, hospitals and schools, or is simply surrounded by spectacular views, it is short-term stay rental friendly.

There are three proven ways of filtering out irresponsible guests that we do to tackle this problem.

Complete positive guest profile

Firstly, instant bookings will only be taken when a guest has a completed profile with profile photo, and positive host reviews in the recent times. However, we don’t say no to all first timers. They will need to provide the valid reasoning/occasion of the booking is made for, and the detailed information on other guests staying, and show us the wiliness of looking after the property with all due care, and respecting the neighborhood. Booking requests will be accepted accordingly.

Minimum night stay set up

Secondly, minimum night stay for weekends and different type of properties will be closely monitored and set up according to public/school holidays and all other peak seasons. It largely disinterests party goers and avoids potential damages that those guests could bring to your property.

Thorough routine walkthrough upon each guest departing

Upon guests departing, we do a thorough walkthrough for your properties and look for damages. Any damages found will be identified and raised to the relevant guest for reimbursement. However, we do recommend you to take out your own separate insurance to cover you for damages that cannot be recuperated from the guests or Airbnb.

There isn’t a definite answer to it. Long-term rental is more of a traditional way of leasing, which offers great stability and security in your rental income, and doesn’t require you to invest too much upfront. However, you will be locked in to a contract where rent and end-of-lease time will be fixed for a prolonged period. You won’t be able to do anything about a delinquent guest or have any control over your property within the lease period.

Short-term rental on the other hand, gives home owners the flexibility of utilising their own property anytime they would like, or sell off their property when they are ready, as there is no lock-in contract with short-term rental. Higher nightly rates are also more commonly seen and charged onto guests when your property is being managed on a short-term basis, which in turn boosts your rental income in a short period of time, especially during peak seasons or holidays. Tax benefit is also one big thing that entices home owners to short-term rental. Purchases made to furnish your investment property, as well as items such as appliances and repair costs can be claimed as a tax deduction.

At the end of the day, you could easily convert to long-term lease if short-term rental isn’t working out for your property. However you will never know the rental income making potential of your property if you never try.

While some recognised sharing economy platforms provide some form of cover or guarantee for hosts renting their property to guests. For example, Airbnb offer a Host Guarantee as well as Host Protection Insurance and Experience Protection Insurance, which may protect hosts for some loss or damage caused by guests. However it doesn’t necessarily cover you for all instances of property damage incurred during a guest’s stay.

Examples of what may not be covered under covers or guarantees provided for hosts by some recognised sharing economy platforms include:

• Your liability to a guest or other person;
• Loss of rental income;
• Temporary accommodation;
• Natural perils;
• Identity theft;
• Valuable items and cash;
• Losses exceeding $1 million;
• Damages from indirect causes; and
• Damages from delays

Thus we would recommend hosts and home owners to take out short-term rental insurance where you can to have that peace of mind.

GST doesn’t apply to residential rent. You’re not liable for GST on the rent you charge, and you can’t claim any GST credits for associated expenses.

However, you may need to pay capital gains tax (CGT) on the rental income you make out of your investment properties. Hence, you will need to keep records such as:

• Statements from platforms that show your income 
• Receipts of any expenses you want to claim tax deductions for