With the latest round of interest rate rises negatively impacting property investors in the hip pocket, it is unsurprising many are now turning to Airbnb to increase their rental yield. In popular tourist areas such as the Gold Coast, Sunshine Coast or Melbourne’s Mornington Peninsula and major capital cities like Sydney, Melbourne, Brisbane and Hobart, investors can realise the same income in two or three days with, for example, Melbourne Airbnb management, that they would normally expect to receive in a week with a long-term tenant.
Unlike long-term tenancies, Airbnb offers hosts the transparency to personally vet guests. Airbnb also offers the security of $1 million insurance which covers a range of scenarios including injury, damage and theft.
Oasis Stay recognises the major investment hosts have in their homes and provides secure, reliable and professional Airbnb property management and housekeeping services so owners enjoy a ‘set and forget’ income.
Is my property suitable for Airbnb?
This is a question many property owners ask. Almost every type of property is suitable for Airbnb, as it aims to cater to the full spectrum of guest budgets. Airbnb stays must offer all the amenities one would expect in a home including access to clean, functioning kitchen and toilet facilities, and private, secure sleeping accommodation.
Many Airbnb hosts have a single room in a house or apartment to let for short-term stays. Naturally, whole homes and apartments are the more popular options for families and those seeking privacy.
At the other end of the scale, many Airbnb hosts are concerned that the significant investment they have made in their home may be at risk from rowdy or negligent guests. Airbnb has a feedback rating system to address these concerns and ensure that the host has the final approval of all guests who intend to stay at their property. Hosts can read through past reviews and ask potential guests questions about their intended stay prior to making a final decision.
Hosts have an option to include a one-off cleaning fee component in the pricing which can be costed to include property management and housekeeping charges. This can mean caretaking of the property becomes cost-neutral.
How to create a secure, comfortable retirement using Airbnb
Let’s do some number crunching to compare the income generated through long-term rental as opposed to Airbnb in a popular location such as Broadbeach in Queensland. Using realestate.com.au as a guide, a long-term tenancy for a one-bedroom apartment can expect a rental yield of around $590 per week in this location. Annual expenses on this property will likely include exorbitant body corporate fees of upwards of $300 per week, making the rental yield comparatively small.
Compare this to a similar property rented nightly through Airbnb which would attract a return of approximately $210 per night – bringing in more than the long-term rental in only three nights!
Furthermore, Airbnb’s calendar allows hosts to block out periods of time when they can use the property for a vacation or allow friends and family to stay – perfect.
Is managing an Airbnb property hard?
Cleaning and maintaining an Airbnb is demanding and time-consuming, as guests expect every level of property to be immaculate, regardless of their budget. Using a professional property management service like Oasis Stay takes the guesswork out of being an Airbnb host. Our local operators deliver full-service property management including maintenance and housekeeping. We can even assist with property styling and photography!
Contact the team at Oasis Stay today and let’s start the conversation that can lead you to a secure financial future through Airbnb hosting.
