Last month we discussed the pros and cons of AirBnb, and this month we are looking at the flexibility aspect of using this service. Maybe you want to use your investment property for yourself, or for family travelling to visit Wellington. This is no problem, all you do is book the property for yourself, with no need to give tenants notice, and no long periods of down time between tenancies. Short- term letting through online platforms also enables landlords to be flexible in choosing how long they rent properties for: it can be for as little as one night. This hyper-flexible letting can easily fit around a property owner’s lifestyle.
Trust Property Management have noted that travellers are choosing AirBnb as an accommodation option because it offers more space than hotels, is more affordable for families and can offer great extras such as coffee machines and breakfast options. There’s also great choice in terms of location. Properties can be in the midst of a tourist hotspot, off the beaten track or closer to other attractions, such as family. In some cases, unusual locations prove beneficial for owners as they can offer a service in locations other businesses cannot reach.
There are of course also some risks to offering your property through AirBnb, starting with cash flow.
The cash flow from short-term letting has peaks and troughs. It is less regular and more seasonal in nature, which stands in stark contrast to the certain income provided by a 12 month fixed term tenancy. Secondly, it would appear that banks haven’t got their heads around it yet. Some buy-to-let property investors are finding it difficult to obtain the funding they need to benefit from the higher yields on offer, because traditional mortgage providers see lending for Airbnb-style letting as a riskier choice than more traditional buy-to-lets.
If you are interested and want to know more about their experience with AirBnb
Management, Trust Property Management are Wellington’s largest AirBnb property managers, and are growing rapidly, and help you with an assessment of your property, so for more information on rental managers Wellington, property management Wellington and full house property management please go to http://www.trustproperties.co.nz .