While rental vacancy rates have risen in Sydney and Melbourne over the last 12 months, the prospect of obtaining higher yields in the short-term rental market in The use of platforms such as Airbnb has become increasingly attractive for investors wishing to take advantage of declining borrowings. costs.
In this article, we examine five key areas to consider when identifying a suitable investment property for a short-term rental property investment.
1. Location of the property
As for conventional rentals, location is one of the key factors that determine the success of your property as a short term rental. You should have a clear idea of ​​the type of guest who would be attracted to your property, the reason for his visit and what brings him to the area.
The best hotspots for short stays include properties located near:
• The CBD and shopping malls attract business travelers and guests needing accommodation for work trips.
• Coastal areas and the beach, frequented by a large number of national and international tourist travelers, families, individual travelers and couples, especially during the peak seasons of spring and summer.
• Tourist attractions and cultural venues, which can be particularly popular with visitors at major events, such as Mardi Gras in Sydney or a grand sports final.
• Transportation centers with easy access to other areas and downtown.
• Airports in the largest capitals offer convenient access for international travelers requiring a short stay before or after long flights.
2. Unique Accommodation Experiences
Many clients on platforms such as Airbnb are increasingly attracted by unique and interesting accommodation experiences that they could not find in a hotel or a standard furnished apartment.
Properties with unique styles and features, such as a Hamptons style home with a large outdoor pool may interest guests in search of unique accommodation options (photo: provided by MadeComfy)
Here are some examples of unique property features that can be highly sought after and attract significant daily rate premiums:
• Views on the roofs of a city or neighborhood
• Showers or Outdoor Baths
• Pretty garden or outdoor courtyard
• Properties with heritage and historical appeal.
• Architecture, interior design and unique building styles
The unique features of the properties do very well on Airbnb as they can be showcased in the marketing of your property, such as the featured photo ads. They also become a central part of your clients' reviews and evaluations.
3. Additional Installations
Some stratum units have common facilities that can be highly desirable for short stays, such as swimming pools, saunas, gyms or even tennis courts. When looking to buy a stratum unit with common facilities, consider again the type of traveler that your ad is likely to attract based on its location and the extent to which these facilities would add value to your stay.
The included facilities can be an interesting added value for certain types of guests staying in short-term apartments (photo: provided by MadeComfy)
For example, a large three-bedroom apartment that would be suitable for a family traveling on vacation would have less use of a gym, compared to a smaller unit or studio, which would suit a single traveler or to a business traveler.
4. Ease of Management
A short-term rental property requires much more direct management than a conventional rental. If you plan to handle customer cleanup and communication yourself, it is usually best to buy an investment in an easily accessible area that you can respond to. Getting to your property to resolve maintenance or registration issues can be time consuming and expensive if you are in another city, for example.
However, if you live far from an excellent real estate rental opportunity in the short term, it is possible to appeal to a professional Airbnb management company that can clean and manage your guests on your behalf.
5. Accessibility
Consider the accessibility of a property for less mobile travelers, such as seniors or families traveling with an infant or toddler. Properties with steep stairs can be difficult to access for these types of travelers and limit the number of bookings you receive. Travelers looking for longer stays may also have a lot of luggage and climbing a long staircase can be a major drawback.
Disclaimer: The views expressed by the contributors and / or the paid content do not necessarily reflect the opinion of Your Investment Property.
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