Airbnb-ing your PPOR whilst you're on holiday

Thinking about when we move into our PPOR and defraying the cost of the weeks of overseas holidays we take every year by Airbnb-ing our place. Has anyone done this? Is it worth the risk...and trouble of cleaning, having strangers sleeping (or worse) on our beds etc? What did you do with all your personal items?

And who do you get to let guests in and out if you're not there - am not talking about one of those Airbnb PM's who charge 20+% either.

 

Which city are you in?

 

Haven't done it' but many people down where I Iive do it. They rent their place out for the summer escape the crowds and it usually covers a trip to Bali in full.

 

Sydney (Eastern suburbs close to UNSW) - 4 bed house though

 

Yeah that's what I was thinking - free/almost free holidays. But I've read the horror stories of places being trashed - that's what I'm afraid of.

 

That will do very well... lock your stuff up though. You will have to pay someone to manage it, but I reckon I can get you someone to manage it...

 

Thanks Gockie that might come in handy and I'll ping you in future.

We have a LUG on premises - would you just put stuff in there? Have tweaked my initial post - how would you feel about people sleeping on beds, using cutlery etc etc. May be good money but its a complete PITA.

 

What do they charge out of curiosity?

 

Consider the tax consequences.

 

I do that in Brisbane.... I have a great lady who manages it for me.

I pay her:
* $25 a week, or $50 if it's a busy week as a retainer.

* $75 per clean (3 bed 1 bath house with backyard patio, 4 beds all up.) Your house sounds bigger so let's say $100 for yours.

* $15 standard payment for laundry (I'd suggest yours could be/should be a bit higher).

* I also pay for garden maintenance, $50 per service. (It's not every week).

* If she has to visit the place several times in a week, I pay her $5 per extra visit.

The cleaning charge is mostly offset by the cleaning fees I collect.

Btw. This individual is excellent, her communication and her organisational and management skills are second to none and I would highly recommend her to anybody needing a person to clean or handle short term lets on your behalf. She lives on the north side of Brisbane but can travel.

In Sydney I manage it myself, but when I can't do it myself I get someone else to clean, I pay them $55 or $60, however I still manage the laundry. My thoughts... Once you find a great asset to help out, stick with them!

 

Garage... do you have on street parking? If so, then, yes, by all means, lock your stuff up in the Garage.

Other people sleeping on your bed... that's a personal question. If you think it's an icky thought, perhaps buy a Koala or Ikea mattress if you want your guests to not sleep on your mattress? Then you could probably resell the mattress on Gumtree anyway. You could buy a mattress from Gumtree. .. your personal choice though if you want to go down that path. But you might just have a look in Ikea first... it will probably be the better option for peace of mind.

Pillows etc, they aren't expensive if you buy the $15 types from Target. Decent quality. Make sure sheets, quilt covers and towels for guests are absolutely spotlessly clean, and invest in new stuff if you need to.

Cutlery, pots and pans etc, I personally have no issue with other people using mine. But you can buy new cutlery from Kmart etc if you don't like that thought.

 

Didnt think of that...damn. But if it isn't a 'business' is tax liable on that income? Does Airbnb-ing a PPOR have any land tax repercussions?

 

Yes, consider income tax, CGT and land tax. Airbnb is a business, but even if it were not there are still tax consequences.

 

Hi @Lacrim we airbnb our ppor out when we go on holidays (and when we take our dog)- last year it paid for two holidays with a bit of spare cash.

I have no issues with people sleeping in our bed / using our things. Our apartment is nice but honestly all our stuff of value is mainly with us so I'm not fussed at all.

I'm located in the eastern suburbs and more than happy to help you manage it if you're looking for someone - we also have two Airbnb's that we run full time in Melbourne . Feel free to pm me if you have any questions !

 

Thanks Jodes, might just do that when the time comes. Concerned about the (land tax) implications though now more than anything else.

 

im curious how many people actually report the full income via airbnb to the ATO

 

I've also considered this - we have a lock up garage also so could easily nick off for a few weeks and let it out over summer - we're right on the beach so demand would be high.
Damage is a concern - I imagine normal H&C insurance would not be covering Air BnB damage.

 

However there is airbnb coverage. Though whenever there's been the rare occurrence of damage by an airbnb guest, i've always been able to get compensation from the guests.

 

What's Airbnb's customer service like - can you actually talk to a (competent) case handler or is it all online BS.

 

Emailing is fairly useless, but calling gets results! What I would do is try to resolve any issues directly with the guest first, and if that doesn't work, get airbnb involved.