Putting property on AirBnB during settlement period

Discussion in 'Airbnb & Short Term Letting' started by Kidgeeq, 20th Jul, 2018.

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  1. Kidgeeq

    Kidgeeq Active Member

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    Hey folks,

    I’ve got an interesting idea and need your thoughts

    Would you ever put your property on Airbnb after it has been sold, that is, during its settlement period (let’s assume 3 months settlement during Christmas time)?

    Would like your thoughts as both the purchaser, the seller and maybe the estate agent..

    Because to me, an empty home in prime location for 3 months is a waste of resource
     
  2. Trainee

    Trainee Well-Known Member

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    The seller still owns the property. The agent and buyer have no right to object unless its in the contract.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    What are the chances of major damage?
     
  4. thatbum

    thatbum Well-Known Member

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    I saw it done it with an apartment in my complex recently.

    But the apartment was already set up for airbnb before the sale and so it was more a fact of the operation continuing to run until closer to settlement.

    Otherwise what would be the plan? - to furnish the place and set it up just for a short 3 month period? Not worth it.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I wouldn't do it whether I was the seller or buyer. Not worth the risk/hassle IMO.

    Cheers

    Jamie
     
    Terry_w likes this.
  6. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    I did it through a settlement period and it worked out well. But it was already an airbnb property though.

    I would not do it in a low socio-economic area plus ensure you have the right insurances in place. And if you do it I can suggest that you only take guests with positive reviews.

    I haven't had airbnb horror guests ever in over 3.5 years of airbnbing (And probably at least 200 guest groups in that time) but it could happen. I had 1 set of guests who burned the carpet in a property with an iron and it left a bad mark on the carpet. (I was able to charge them for that though). That set of guests were 4 young Indonesian females (maybe only around 19 or 20 years old) in case you were wondering. That's the worst I've had in terms of airbnb guests. So perhaps if you want to be a bit discerning avoid groups of young people. (Or at least start by probing them with extra questions).
     
  7. Kidgeeq

    Kidgeeq Active Member

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    Interesting and varied opinions

    I’m thinking about those premium properties (beach side locations, future holiday homes, CBD located properties) that during holiday season would fetch some very respectable returns.

    I would imagine at 50% occupancy over the 3 month period at say $150 per night, a return of $6300 would be respectable

    I understand having insurance in place, due diligence in selecting the right guest etc would be critical, but I would say worthwhile for the return..

    But furnishing I see is the biggest drawback
     
  8. thatbum

    thatbum Well-Known Member

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    I would probably say "not a chance of being worth it" if you've never had experience being an airbnb host before.

    Hosting generally is already a tricky and time consuming thing to do normally at the best of times. Trying to learn it in a very short time frame and under dubious proprietary tenure is not the best of times by any stretch.
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Watch out for the land tax trap. eg NSW land tax applies AS AT 31 December. You could taint the main residence concession and be subject to land tax in some instances