If you have a holiday home you are rarely using, or even just looking to get the most out of your investment property, this article is for you.
There has never been a better time to turn your property into a passive money-making machine through short-term rentals. With restrictions easing and many Australians’ looking to travel for a change of scenery, experts are predicting demand, particularly in key holiday destinations is to reach an all-time high in 2022 as friends and families look to get away and make up for lost time.
Short term rentals (otherwise known as holiday rentals) are quickly becoming one of the most popular ways to make great extra income with minimal effort. However, given the short term rental model is still quite a new concept, unfortunately a significant amount of misunderstanding still exists in the market. Many property owners still believe that putting their property up for a short term rental basically involves leaving their beloved house to a group of disrespectful partiers on Airbnb that will likely damage their property. This is no longer the case with the rise of holiday rental management companies. In fact, according to Booking.com, only 1 in every 5,000 bookings cause damage — and most of those incidents are accidental rather than intentional.
So, whilst some choose to do their rental through Airbnb themselves, many others choose work with holiday rental companies that offer a holistic solution that removes all responsibilities from the owner. The only worry left with the owner is how they are going to spend their extra disposable income each month.
In this discussion, you will see why holiday rental is a way you can make a lucrative profit from your property through a seamless rental experience.
What is a short-term rental?
A short-term rental generally means when you are renting out your property for a few days to a few weeks maximum to a group of guests. The people who rent your house or apartment would stay there for reasons such as a family getaway or even a business trip.
Guests are willing to pay a much higher premium per night for short term rental properties compared to long term rentals, thereby maximising the revenue potential of properties. Many property owners have found groundbreaking success with this practice. If your property is in a key destination spot your earnings will be even greater.
Property owners also love this model compared to having long term tenants as they can get professional cleaners into the property multiple times a week! Professional maintenance teams also regularly look after the property.
Holiday Rental Management Companies Vs. Airbnb
In recent years platforms like Airbnb, HomeAway, Booking.com, VRBO have made it much easier for property owners to find guests to book their property. However, there is great limitation to relying on these systems. They will only connect you with possible guests. The rest is up to you.
As a result, you are responsible for marketing your property, screening guests, managing bookings, responding to customer queries, dealing with payments, bonds, organising cleaners and maintenance frequently etc. whilst ensuring each guest has an amazing time so they leave an even better review! This is the reason many property owners opt out of doing it themselves. In this case, the best thing to do is renting your property through a holiday rental management company who are experts and have systems in place to manage all of this so you can spend your time on doing things you love.
The Post Pandemic Business Possibilities Of Holiday Rentals
A major impact of COVID-19 was on travel and vacation. Many people were locked down in their homes for an extended period; over 250 days for those in Melbourne! But now, as lockdowns slowly become a thing of the past and authorities continue to lift travel bans, it is expected that Australians will make the most of this newfound freedom to travel domestically to vacation spots for some much-needed refreshment with family and friends.
Although the COVID-19 situation is better than before, the fear of the virus is very real. Therefore, people will continue to practice social distancing techniques. As a result, most vacationers will prefer an apartment or house they can have all to themselves, rather than a crowded hotel.So, holiday rental property owners can expect more demand and willingness to pay premium prices than usual.
Lastly, due to worldwide vaccinations, international traveling is opening up again. People from around the world will again start visiting the many beautiful holiday spots around Australia to refresh their souls. So, property owners at these spots can expect a very profitable year.
Advantages Of Holiday Renting
Many property owners shy away from holiday rentals because they see it as a lot of hassle. But in comparison with a long-term rental, short-term rental is more profitable and gives you better control over your property.
Earn more and enjoy your property when you want
You can earn more money with a holiday rental than in long-term arrangements, particularly if it is in a holiday hot spot. Holiday rental payments can be two to three times the monthly income from long-term rents.
To give you an idea of what is possible, here is a breakdown of what we have achieved during the holiday season just gone. Over the summer we managed to have an occupancy rate of 85.5% and an average nightly rate $938.
Additionally, you can get the most out of your property through holiday rentals as you can book and enjoy your property when you want. All you need to do is book it out in the calendar in advance.
Less wear and tear
When a long-term tenant is using your property as their home, you are very limited in your right to intervene or practice much control over your property. The maintenance of your property is left to the mercy of your tenant.
With holiday rentals, guests are carefully handpicked, they come and go, leaving you plenty of time in between rentals for maintenance and cleaning. Plus, the guests do not see the property as their home, rather a place to stay for a few days. So, they are more careful when using your property.
Moreover, if in the unlikely case a tenant damages something on your property, your holiday management company should have insurance that covers such damages and collect the compensation on your behalf so you can relax and avoid this unpleasant process.
More control over rent prices
With long-term rental agreements, you don’t have the freedom to adjust rent as you see fit. The ethics of the tenant and property owner’s relationship does not permit you to raise rents whenever you want.
But with a short-term rental, you can determine the rent according to season and demand maximising your return.
Tax benefits
Holiday rentals will give you almost all the major tax benefits of owning a rental property.
You can deduct up to $25,000 dollars in taxes if you regularly and actively use your property for business.
Difficulties Of Holiday Renting
Maintaining a steady flow of guests
One of the main challenges with holiday rentals is to create and maintain a steady flow of guests. Doing that on your own is very time-consuming and requires a lot of expertise and hard work. Lively Properties are experts in this area and will take care of all the marketing, price setting, listing your property online and everything else needed to ensure your property is booked out and the money is coming in.
Save your time and money
Managing a rental property is a lot of work. You have to take bookings, talk to the guests, make sure they are having a good time, instantly help with any problem arising during their stay, and many more. When you do your business through us we take care of all these, and we do it more professionally and efficiently.
Moreover, if you hire people to do the washing, cleaning, and gardening it will cost you more. Our company will provide you with all these services saving you time and money. In addition, you can save time refocus your energy on your job or other things you like doing.
New Health Protocols
After the COVID-19 pandemic, the health and cleanliness protocols regarding living situations are stricter than ever. Plus, people themselves are more conscious and serious about sterilisation and health. Our Property Managers are well-versed in these rules and provide the needed assurance to your guests.
Benefit From A Holiday Rental Management Company
Most owners prefer a long-term arrangement because they find it more stable. They sacrifice the money, control over their property and maintenance just to avoid the hassle of management.
Now, when you use a holiday rental management company for your property you have the same stability (or more) but better more control, better maintenance, and higher income.
Our company Lively Properties has been working with property owners like you to deliver a seamless and effortless rental experience. The Lively team specialises in property supervision, maintenance, guest services, promotion & marketing to maximise the revenue of its homeowners and offer the best home care and hospitable services for its guests.
Conclusion
Lively Properties are the ultimate solution for property owners who want to earn more and do less.
If you are interested in how much your property could earn through holiday rentals, please contact us today at:
Email: hello@livelyproperties.com.au
Website: www.livelyproperties.com.au
