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Property investors are catching on to the AirBnb phenomena as an attractive alternative option for renting out their properties. The online accommodation website is growing in popularity and in larger centers it is affecting rental property stocks, as property investors turn their homes over to Airbnb management groups to make better returns.
This month Trust Property Management look at the difference in offering your property through AirBnb compared to a standard tenancy, and the benefits of renting your property out to AirBnb guests compared to residential tenancies. One of the biggest concerns for landlords is the cost of damage tenants can cause, and using AirBnb is a great way to reduce the risk of long term damage. AirBnb guests are all rated by their host, and this star-rating, including a comment is publically available on the website. Guests rely on your feedback to continue to use the platform, and secure future bookings. This means that they tend to
treat the property in high regard, and leave it as they found it.
Also, daily rents for short term lets are on average twice as much as those on a standard, longer term residential tenancy. Through increasing your revenue you naturally increase your investment returns. Daily rents can be modified to reflect peak periods, which means that during school holidays, Wellington’s Beervana and the World of Wearable Arts you can increase your nightly charge to reflect demand. Conversely, when the weather is bad and things are quiet, you can reduce your rent to keep your occupancy steady.
Yourself or your property manager will be in your property two to three times per week as opposed to every three months with a standard tenancy. You will receive regular and constant feedback from guests, so you will know as soon as there is an issue, or a potential issue. This allows the chance to be reactive with any maintenance as you are not relying on tenants to make the issues known
Next month we will discuss the benefits in the flexibility of AirBnb, and also the risks involved, so for more information on rental managers, residential property management and property managers Wellington please go to http://www.trustproperties.co.nz .