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AirBnB or normal rental

Discussion in 'Property Management' started by Leo2413, 26th Jul, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I have recently been toying with the idea of turning one of my 2bed units ip only minutes walk to bondi beach into an airBnB.

    Currently renting for $850/week. It's very modern, completely renovated and fully furnished. Those who have experience in this area, what's your opinion on it? I was thinking because the unit is in such a central location and in luxury style it may be a good side business to turn it into an airBnB.

    All feedback is appreciated. Thanks.
     
    Last edited: 26th Jul, 2015
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    My opinion is to consider doing it when the current tenants move out. $850 a week rent without hassles isn't bad. While you could get more with Airbnb, (I dont know how much you can charge btw in that area) you also have to do some work for it too, it's not completely passive. Ensure the unit is set up for easy hands off checkin and checkout too, you don't want to have to do it personally as guests can check in at all hours.
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Thanks gockie. Had a look and it seems the prices range from 200-350 a night depending how close you are and also the condition of the place. If i were comparing my one to similar ones on the airBnB website I should be able to ask around 300 a night i would think.

    Yes definetly would want to have a system easy for them to get the keys without needing me there. Thanks for your advice Gockie !
     
  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Wow. Those nightly rates. Do you have a fixed term tenancy in place, or month to month?

    If you go for it I suggest spring is a good season to start if you can because you will have lots of demand in the summer.
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Great idea gockie thanks!
     
  6. pinkboy

    pinkboy Well-Known Member Premium Member

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    How much work are you going to have to do to ensure 3+ nights rental every week for 12 months to equal the relatively passive $850/wk now?

    Shedloads!


    pinkboy
     
  7. Perp

    Perp Well-Known Member

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    Do 1) Council's zoning restrictions and 2) body corporate by-laws allow for short-term rentals?
     
  8. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Well, what I do is set the minimum stay to something higher so i'm not needing constant checkins and outs, have lower rates to attract longer stays, (btw I offer long stay discounts, this may or may not be necessary but its working for me) and charge less over the winter and more in summer. Definitely doable.
    Also my place is completely booked out except the odd single night here and there cause I don't accept 1 night stays. But that just gives me a window of time to allow for maintenance.
     
  9. pinkboy

    pinkboy Well-Known Member Premium Member

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    But is yours in the $300/night bracket?

    pinkboy
     
  10. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Nope!
     
  11. pinkboy

    pinkboy Well-Known Member Premium Member

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    So then we are talking cheese and chalk.

    pinkboy
     
  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    But even if he rents at $200 a night I can see it would be successful.

    Yes... please give consideration to the neighbours....
     
  13. pinkboy

    pinkboy Well-Known Member Premium Member

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    52 different sets of people staying 5 nights a week to make the same $$$.

    Sounds like another job if you ask me. :confused:
    I'm not seeing your logic.


    pinkboy
     
  14. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    The numbers work. You get people paying what is 3x-4x normal rates over new years cause they need someplace to stay in Sydney cause it's the place to be...
     
  15. pinkboy

    pinkboy Well-Known Member Premium Member

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    Telling us the numbers work is one thing, show us.

    Show us how it's worth it including opportunity cost of the effort involved to make it worth it versus passively.



    pinkboy
     
    Last edited: 26th Jul, 2015
  16. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    It is literally the worst time of year to try to Airbnb a place in Bondi right now.

    In line with what Gockie suggested, the way to do it would be a longterm tenant on 6 month lease in the colder months then have a crack at Airbnb during the warm months (peak season). You'll make a hiding over Christmas and throughout summer.
     
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  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Thanks Steven. I would be considering trailing this out during summer and over Xmas period as you suggested. I think I'd look at minimum stay of 7 day period. Thanks for your advice mate! I have a friend who is doing just that and making a nice net return, which prompted me to consider it too.

    Btw Steven has just written an interesting article re airBnb in YIP magazine for those who aren't aware :) I love your upgrade comment Steven, was classic! :D
     
  18. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I'm not going to show you the numbers on my property but there are plenty of articles on the web that shows the numbers.
    Let's say the return is over $100 per hour of work....
     
  19. pinkboy

    pinkboy Well-Known Member Premium Member

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    If you're going to argue or defend an opinion at least provide some evidence instead of a general statement.

    Anyway, I'm off to plait the mane of my Unicorn.


    pinkboy
     
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  20. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Have you airbnb'ed yourself??