I have a house in a tourist area of the sunshine coast QLD. It has been a permanent rental for quite a few years. Rentals are scarce and i have no dramas leasing the house. However, the current tenants are vacating soon and i am considering the airbnb option. I live close enough to clean it, change bedding etc. And would pay someone if i can't do it. My question really is about income, has anyone got any real experience on comparisons of rent we may receive. Obviously you have to take into account elec,water,buying furniture,ground maintenance,etc. But lets say it only rents weekends and school holidays would i really be better off financially? Any personal experience out there?
Rental Property- Lease or Airbnb
catichau on 17/07/2018 - 07:46
Comments
I've heard of more than one AirBnB that's had a 'party', with attendant damage issues, and more particularly annoying the neighbours, police, etc.
When you think about it, it's not too surprising that someone would work out it's a cheaper and less hassle way of holding a riotous party than doing so at their home.
The risk of that goes way up for tourist type area.
But lets say it only rents weekends and school holidays would i really be better off financially?
What do rooms go for on airbnb for the weekend in your area vs weekly rent?
airbnb income is up and down, vs fixed weekly income.
Are you good at dressing a place up? Airbnb is more than slapping a $200 couch, a table and a bed into a place and racking in the money. You need to sell the dream.
Obviously you have to take into account elec,water,buying furniture,ground maintenance,etc
Bedding, insurances, airbnb fees, INTERNET fees.
Plus need to be available to field calls and problems etc.
It's all dependent on where you live.
In Huskisson NSW I have heard stories of Waterfront or Close to Waterfront houses receiving a years worth of rent from 2 weeks of leasing on AirBnB in Summer!
On the flipside, I had an apartment in Marrickville that was on AirBnB and that was dead in Winter and actually lost me money and made me not much more in the summer periods.
Think about it from a tourist perspective, if you have something that would be tempting in Summer or in Winter then I'd say you have a good chance of being successful on AirBnB
get new tenants
It's a trade-off.
Airbnb - more work, more hassle, less stability, usually more money overall.
Lease - less work, more stable, less money.
Also depends on location, you say touristy area of the Sunshine Coast, but how far from beaches, etc? And expect for airbnb income to crater in the winter months.
I am currently renting out one apartment and airbnb-ing out one apartment
Renting out has been good, I don't have to worry about anything since the realestate is taking care of it.
The air-bnb has been a nightmare, I get messages at midnight asking why the internet is down, I need to call the ISP, who says try restarting the router etc etc
I get messages saying the lift is not working..
Basically anything thats not 100% perfect will be my fault.Unfortunately the place is zoned as short term accommodation so I can't rent it out officially via a real estate.
what other area have short term accommodation zoning? I can only think of caravan parks at the moment. Or is it serviced apartments?
serviced apt yes,
not allowed to live there or rent out for more than 6 months in a row
don't know about airbnb, but i've rented places on stayz when i've gone on holidays, have you looked at them?
thanks for all the comments, yes have looked at stayz, which is really a similar short term rental as airbnb is, I think you have all clarified, yes it will be a lot more work, and yes I have looked at nightly going rates and vacancys. I believe we would defiantly be in front financially short term rental, however, just need to decide if its worth the extra effort. again thanks for feedback
Have you at least done your research on how much you can get for leasing vs airbnb? And then how much the external cleaners would charge?
There's also the non-monetary risks such as damage every time someone new moves in.