Since the emergence of short-term rental websites like Airbnb, Stayz, there has been much debate about whether properties rented on a short term basis provide a better rental yield for a property owner than on a long term lease. Property owners are trying to squeeze out every dollar when it comes to their homes so we made a list of pros and cons of both Airbnb short term property rentals vs long term property rentals
Pros
- Short term rentals can provide owners with rental returns up to 30% higher than a traditional long-term
- Ability to choose when you wish to use your property personally.
- Can use holiday rental letting to supplement your income
- Flexibility to take advantage of higher rental returns during peak seasons (e.g. school holidays, long weekends or summer).
- Opportunity to generate income from your own home when it is vacant (e.g. work travel or holidays).
- Opportunity to meet people from all over the world.
Cons
- Banks may prefer the stability of a long term lease when assessing a home loan application.
- Risk that your property may sit vacant for extended periods of time particularly if the property is located in a less desirable area with little tourist activity.
- Uncertainty around regulations, council, strata bylaws and insurance coverage.
- Competitive, as more and more listings are popping up, you’re not only competing against other airbnb properties but other hotels on listings, price and service.
- Ongoing fees, utilities, electrical and internet costs
- Capital outlay, furniture and linens for Airbnb rentals
Holiday rental letting requires a bit of leg work from guest check in, to ensuring the cleaning is hotel like. As a Airbnb property management company in Sydney and Brisbane we not only provide Airbnb cleaning but full Airbnb property management in Sydney and Brisbane
Real Property that we manage in North Sydney, not only does it receive more than standard long term rentals this also includes the owner returning home to his property.during Jan-June 2016
Long Term
Pros
- Stability of rental income received.
- Requires little involvement or effort from the landlord.
- Easier to profile a single tenant.
Cons
- Inability to flexibly manage your property to take advantage of periods of high demand.
- Tenants are likely to be more demanding for repairs.
- No accountability with tenants who damage your property after the lease.
- If traveling overseas you can’t rent out your property for the short term or ever be able to use your own property during the tenant’s lease.
Are short term rentals right for you? Data has shown that the properties which provide the best rental returns for hosts in Sydney are located in the inner city or near the beaches. You can either do all the work yourself or if you want we have an article here on what to look for in a holiday short term property management company. If you have any other questions on Airbnb, properties or just to say hi don’t hesitate to contact one of our friendly hosts at info@Hostmybnb.com.au
