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AirBnB vacancy rates

Discussion in 'Innovative Techniques' started by HappyCamper, 23rd Aug, 2015.

  1. HappyCamper

    HappyCamper Active Member

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    Anyone here regularly rent out their place using AirBnB? Care to share some details (location, property type, vacancy rates)?
     
  2. Excalibur1

    Excalibur1 Well-Known Member

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    Thanks for asking that question. I'm interested to know too! I have been "following" on airbnb one person who has 3 apartments in Sydney CBD and they always seem to be booked out 3 months in advance. That could be because either he is really booked out or there are certain periods of time when he doesn't want to rent it out and makes it unavailable. but still he charges around $250 per night and more around new year. it seems like a great money maker....
     
  3. Depreciator

    Depreciator Moderator Staff Member

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    On average the returns are higher than a normal rental, but it involves more work and a lot of people doing short term letting in apartments have been getting nasty letters from strata managers and the local council.
    CBD properties would rent the most consistently. My Airbnb pad is in Marrickville and it's mostly booked till next April, but it's not a standard sort of property.
    People with properties further out don't get many takers during the winter months. Beach side suburbs also have a winter downturn.
    Scott
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Air BNB is not a tenant. It a service provider. I dont calculate car finance based on uber.
     
  5. cheekykoon

    cheekykoon Well-Known Member

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    Property letting is a business, you should look at the profit / loss statement.
     
  6. Gockie

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

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    I've got an Airbnb in Darlington (next to Redfern and Chippendale). It is more work, you always need to find out when people want to checkin and out to make sure you have time for the turnaround, sometimes its not so easy to get a cleaner but overall, it works very well. Its always booked out and most months i'm vacant only 2 days - but that's because I don't do single night rentals.

    My property is a 4 minute walk to Redfern station - which is excellent as it's extremely accessible by public transport. Its a 2 level 1 bedder - suitable for up to 4 people. At the moment I have a vacancy between 30th August to 6th September which is pretty unusual - I am pretty confident it will get filled though, it always does. Other than that, I'm nearly fully booked for the next 2 months.

    If you go out to the suburbs I think just offering rooms in a house works quite ok - i'm not yet game to do a full home listing of a suburban property, as i'm a bit unsure of demand for that product.

    If my furnished property in West Ryde doesn't lease soon though I may give it a shot.... but I know there is interest in leasing that one long term.

    Also, I found as an Airbnb guest (in a hosted property, private bedroom), staying in townhouses really appeal to me. Bedrooms are good, they have modern, nice bathrooms... if you can offer a full bathroom to a guest for their own use.... bliss!!!! :) It has consistently been a good option and I've stayed in a few interstate (Canberra and Brisbane)
     
  7. Excalibur1

    Excalibur1 Well-Known Member

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    That's really good to have low vacancy. You are lucky Gockie. I'm still wondering if it is worth it?
    I know you can get more from renting through AirBnB, but the fees they charge up to 17% eat up most of the difference between renting the conventional way and renting through AirBnB?

    Do you mind me asking how much do you rent it for and do the numbers make sense. The way i'm calculating it and it shows me that it is maybe 5-7k a year better to rent throgh AirBnB than long term lease. Can you please correct me if i'm wrong to assume that? Sure 5k is good to have at the end of the year.... but is it worth the extra work?
     
  8. srirang

    srirang Well-Known Member

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    Are the fees that high?

    Their website (https://www.airbnb.com.au/help/article/63) says its 3% and gives the following example.

    @Gockie, are you able to confirm the fees? I'm considering doing something similar and have a lifestyle apartment in the city that will be on AirBnB when we're not using it.

    Example: a 4-night reservation at a listing with a nightly rate of $100 and a $50 cleaning fee

    Subtotal: (4 X $100) + $50 = $450

    Payout: $450 - (3% X $450) = $436.50

    $450 - $436.50 = $13.50

    Host service fee = $14
     
  9. Depreciator

    Depreciator Moderator Staff Member

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    Airbnb charge guests 10-12% on top of the host's room rate.
    They only hit hosts for 3%.
    So Airbnb make most of their money from guests.
     
  10. Gockie

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

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    Yep, that's right. They only charge the host a 3% fee, but they charge the guest 6-12%. So you get most of the money, its even better than going through a property agent.

    Also, they pay you the money into your bank account 24 hours after the guest checks in, so even allowing another day for bank tranfers, the money comes through in a very timely manner.
     
  11. Gockie

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

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    I'm charging about $130 per night (goes up or down with seasons) plus charge an extra $18 per guest per night past 2 guests, and $50 cleaning fee.
    Additional outgoings are electricity and wifi, plus consumables, toilet paper, tissue paper, kitchen paper, welcome snack, basic breakfast items (I provide milk, cereals, spreads, breads), shampoo, body wash etc.

    Plus purchase of towels, sheets etc as necessary.
    The interesting thing is people often leave things there - bathroom items, food etc - it becomes yours!!!
    A normal rent for the property is $500 per week.
    Plus I can use it when I want to as well. I could possibly increase the rate a bit more too (Airbnb suggests something like $200 per night) but I want longer staying guests so keep it a bit lower to get the kind of bookings that are lower maintenance.

    Just a tip... a 9kg washer dryer is a godsend for all the washing you'll be doing!!!
     
    dante678 and Perthguy like this.