Due diligence question

Discussion in 'Investment Strategy' started by Jess Peletier, 22nd Apr, 2019.

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  1. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    Hi friends!

    I have an IP that I'm considering using the front rooms as office space and renting out the back of the house on air bnb.

    The configuration does lend itself to this.

    My question is with air bnb, does anyone do this by the room?

    I'm really not sure where to start with DD to know if there would be demand.

    In Summer we'd do the whole house but in winter the demand may not be there so thinking by the room for the winter months.

    No idea if feasible or even possible to do this on air bnb so I really value the feedback from any experienced hosts!
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    I haven't actually done it yet, but I've done plenty of DD on private room letting. Its a whole category of premises under airbnb so you can search for private rooms only rather than airbnbs that are an entire premises.

    So I'd usually start by seeing what prices the competition were asking for in the area, and also what their calendars looked like to get a rough idea of how busy they might be.

    I got the impression that private room stays were surprisingly popular. At least in the areas I was looking.
     
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