Why You Should Reconsider Putting Your Property on Airbnb
The recent introduction of accommodation-sharing site Airbnb has taken the world by storm, and it has changed the way many of us think about travel. Offering ‘hosts’ the opportunity to rent out entire properties or spare rooms, Airbnb provides an affordable accommodation alternative to travellers as well as a chance for those with space to spare to earn some extra cash.
In fact, Airbnb has risen to such fame that there are some landlords who are now wondering whether they might be better off listing their investment property as a short-term holiday rental rather than a traditional rental property.
While there’s no denying that a short-term rental can offer some great benefits, there are a number of important aspects for landlords to consider before making any major decisions. For those who are considering making the switch, we recommend proceeding with caution. Here’s why!
Seasonal changes are likely to affect bookings
In order to generate a profit that equals or exceeds that of a traditional rental property, you’re going to need to attract a significant number of bookings all year round. While your seaside property might bring in guests in droves throughout the warmer months, you may find it more challenging over the winter period.
Conversely, most professionally managed properties call for a 12-month lease period, which means you’ll only need to worry about advertising once per year at the very most.
More guests mean more risk of property damage
We’ve all heard the horror stories of serious property damage caused by negligible tenants, which is why it is so important to employ a professional property manager to help you find responsible and reliable tenants.
On the other hand, Airbnb operates on the basis of welcoming a continuous stream of strangers into your (fully furnished!) home. All it takes is one bad guest, and you could find yourself thousands of dollars out of pocket.
Depending on your location, the legalities can be complicated
What many people don’t realise is that the legal aspects of Airbnb can considerably more complicated than they appear. Unlike traditional rental properties where the rights and responsibilities for both landlords and tenants are clearly defined, Airbnb falls into a grey area in many Australian cities, with new legislation surrounding short-term accommodation still unfolding.
Further to this, Airbnb doesn’t currently provide localised legislation support, whereas a professional property manager can provide the most up-to-date information and support surround all legal property matters.
You may be required to provide round the clock support
Another key aspect to be aware of before you commit to becoming an Airbnb host is that you may be required to provide quite a significant amount of support to your guests. Not only will you need to ensure your property is appropriately prepared to welcome visitors, but you will also need to provide check in and check out support as well as promptly answer any questions guests may have during their stay.
In the event of an emergency, you will be the first point of call and it will be up to you to arrange the relevant trades or services to rectify any issue. In professionally managed properties, this is rarely the case, and your property management agency would step in and oversee these situations on your behalf.
For further information on how Stockdale & Leggo’s property management service, contact your local office today.