Am I mad?

Funny you should mention that, I'm doing some investigation now to see if it is worthwhile to start up my own business as opposed to buying one.

Buying a proven business model gives comfort to the property owner. So long as I can keep up the good work (or better), I assume they would stay with me. It also provides me with the instant cashflow so long as I work hard and do a great job. I've worked at a 5 star resort before so know what is expected and expect that standard myself.

Starting new has some limitations with credibility, although so so much cheaper. Toying with the idea to lease an apartment (12 - 24 months) and then put it on Airbnb (with landlord approval). Already have cleaning company in mind and also a plan to ensure all guests are verified and met for key handover. I like the idea of using Guesty as the PMS as they can provide the 24x7 communication and interfaces to cleaners (I have company lined up). I can do most maintenance work if needed. So much time required for legals, website etc etc etc though.

Any startup advice would be greatly appreciated.

Cheers

 

Anyone using a professional Airbnb management firm here? I know there are a few around but not many, if any, in Perth?

 

I used a Airbnb management company while I was on holidays. Then when I came back I managed it again. Previously I used my parents to manage mine while I went on holidays but my dad has zero customer service skills, it’s not his strength. Otherwise I would have used my sister but on this occasion she had recently had a baby so it was better if I outsourced it. It worked well.

 

Your comments are very interesting in that a professionally run hotel still offer value when compared with part-time airbnb operators

 

Have you considered just running a hotel instead?
Perhaps one that is part of a worldwide chain

 

Haven’t really looked into chain hotels but definitely not interested in a franchise model. Got close once to signing up to a franchise until it came to the contract where they effectively wanted my assets in return for the hope of a few pieces of silver.

 

@Gockie, would you say that running an airbnb in Redcliffe has been rewarding in terms of yield for your property? From my own experiences in Melbourne, net yields can double that of long term rentals but the management fees as high as 20%.

 

I gave it to a local agency to manage. But too many fees, too many random repairs. So I'd say, no. But then again, normal yields on the house wouldn't be that high either.