Perth Airbnb/Shortstay management

Discussion in 'Airbnb & Short Term Letting' started by thydzik, 14th Oct, 2019.

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  1. thydzik

    thydzik Well-Known Member

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    Hi All

    I'm investigating using a property manager for Airbnb/shortstay for some properties in Perth, does any one have any recommendations or any business members that provide this service?

    Thanks in advanced.
     
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  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  3. Depreciator

    Depreciator Moderator Staff Member Business Member

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    The fees for this service are usually 15-20% of the rental. That's a big chunk.
     
  4. Vee84

    Vee84 New Member

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    It's in the 25% percent now with no hidden fees involved. Some think it's a big chunk but all the different aspect that's involved makes it a reason why alot of host who have managed it themselves finally started to give up and use a reputable management company. You can surely find cheaper providers but you will get that form of quality. Cheaper isn't necessarily always the best option. One has to do its on research and work out what's best for them in the long run.. going cheap and then realising they were mismanaged or rather go with a management team that is growing and has it's sop and process in place.
     
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  5. thydzik

    thydzik Well-Known Member

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    What returns are you seeing on Airbnb compared to normal long term leases? I don't mind paying more for management if the overall returns are higher
     
  6. Vee84

    Vee84 New Member

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    The returns are generally 20% higher then normal rental return, secondly the property gets maintained aswell, the key to having a successful short term property is ultimately the presentation of your property as it's a core driving factor then it would be your property managers if they 're doing what's needed. Especially keeping the property at it's best to start with. If you have a good property and bad management team that would reflect on your properties review and performance aswell.
     
  7. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Agree. Hard to figure but it's gold. We pay fees to booking.com of 15% and same to the pm. Net yield is now approaching 30% after this with 100%occ across summer and winter. we use Airbnb for short gap bookings to fill the odds days. Gotta keep spending to maintain the standard. Demand sets the rate
     
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  8. Vee84

    Vee84 New Member

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    I would advise you to do your due diligence with booking.com. They can be great but they are also known for alot of credit card scam, and vetting issues. Anyone can be John doe using anyone's card. I avoid them at all cause unless they improve their standards and get the ball rolling to protect owners and guest.
     
  9. Perthguy

    Perthguy Well-Known Member

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    My partner is managing and Airbnb in Perth that was previously rented out for $420 per week. Typical per night price is $220 per night, min two nights plus $150 cleaning fee. On average it seems to be booked out around 5 nights per week.

    Costs are high though. This property needs cleaning, laundering, mowing, pruning, pool cleaning and general repairs and maintenance.

    I have no idea if it is actually profitable but I can run some general figures from the first 9 months if you would like. From memory it cost about $30k to set up. But then it's a massive 4x2 with a lot of beds and furniture etc.
     
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  10. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Never had a single issue in 12mths and prior owner used them for years. All our bookings are fully prepaid which helps. We do cancel on request without penalty up to 4 weeks. And bookings are usually well in advance (3-6mth even earlier) which helps for card dispute detection. If a dispute happens a vacancy occurs !! Short stay gaps are listed with airbnb at a higher charge.

    We dont do those free cancel within 24hrs bookings. Can imagine they are a concern.
     
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  11. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    I’ve handed mine over in Sydney to someone else to manage day to day. She takes 15%, however, she’s also managed to lift the nightly room rate approx 24%.

    I hardly need to worry about the place now, I monitor and read and respond to messages as I feel needed (if there’s a question I’m better at answering, I’ll do it or if appears she’s offline, I’ll do it) but don’t need to be very involved. It’s been really good from my perspective, and now I’ve been hosting for 5 years. Just had some really good bookings come in, one worth 14k.

    :)
     
  12. moridog

    moridog Well-Known Member

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    Westminster do you have an email address for Lauren? I don’t have insta. Thanks!
     
  13. Beano

    Beano Well-Known Member

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    Thirty percent net ! That is a fantastic return .
     
  14. Beano

    Beano Well-Known Member

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    Would you make 30% net too like Paul?
    I.e. if the property is worth $1m you make $300k ?
     
  15. Beano

    Beano Well-Known Member

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    Is 30% net profit the norm on Airbnb (so $300k on a average $1m house) ?
    Or is it on the low or high side ?
     
  16. Perthguy

    Perthguy Well-Known Member

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    No.
     
  17. Beano

    Beano Well-Known Member

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    Is 30% on the low side ?
    Do you make much more ?
    After your labour input (calculated at say $100ph ) would your yield be 30% ?
     
  18. thydzik

    thydzik Well-Known Member

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    I'm going to start speaking to some airbnb managers shortly as I have some long term leases ending feb/march.

    Do the managers use existing airbnb profiles and accounts?
     
  19. thydzik

    thydzik Well-Known Member

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    @Vee84, what rates and utilisation do you think is possible for a 1 bedder in Cloverdale?
     
  20. Big Aussie

    Big Aussie Active Member

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    So what exactly do the managers do for their 25%?
    I've never used AirBnB either way, so don't have a good grasp of what's involved.

    I would imagine that the costs of paying somebody to clean and prepare the property every time, would take a large bite out of the earnings?