AirBnB or normal rental

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.

 

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.

 

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 !

 

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.

 

Great idea gockie thanks!

 

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

 

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

 

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.

 

But is yours in the $300/night bracket?

pinkboy

 

Nope!

 

So then we are talking cheese and chalk.

pinkboy

 

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

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

 

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

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


pinkboy

 

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...

 

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

 

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.

 

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!

 

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....

 

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

 

Have you airbnb'ed yourself??