Serviced apartment / used on AirBNB

Hi guys, was looking at apartments similar to the below. Just wondering how leasing works in a building like this when I can see apartments available on booking.com plus also on airBNB.

could they typically be listed on hotel sites and also be used on AirBNB to help supplement bookings or would it have to be one or the other?

Should I stop looking at things like this? Was looking at holiday spot we can use ourselves plus also cover costs in the other periods

3A/135 Parkyn Parade, Mooloolaba, Qld 4557
https://www.realestate.com.au/property-unit-qld-mooloolaba-140054003

 

Ad says, it is in the letting pool. This means that the owner has chosen to get the complex management to handle bookings. A buyer may or may not continue this arrangement.

Other owners in the complex may choose to live there permanently, rent out through Airbnb or retain them for their own holiday use.

Make sure you thoroughly check any letting requirements before buying. Some complexes restrict holiday renting, or stipulate all renting must be through the centre management.

Also be aware that if you intend to use it yourself in all peak periods (school holidays, Christmas, Easter etc) and rent in out in lower demand (cheaper) periods you may have issues with the ATO.

 

1, Can it be listed outside the pool ?
2. What is the contract arrangement eg is it a timeshare building ?
3. How does service support work and what does it cost ?

I would expect a 35+ year old holiday let building with resport facilities to have signifcant capital works and strata fees. Could be a costly hold,

I generally caution buying mixed use property in holiday locations when asked. Here is how ATO see it.... You list it and is rented from time to time in year. But since its in a pool you get no preference and its really rented just 20% of the time. Sure the rent is higher than weekly lease rents but its often vacant. The yield is appalling. But you use it in peak holiday periods. Ask yourself when peak rent period is (DEC + Jan and Easter, School Hols etc). You argue that you used it 10 week in year and adjust deductions by - 20%. You will tell me "but it was vacant"...ATO doesnt care. ATO however says it disputes this since the period you use it reflects perhaps 60% of the rental earning potential and its not really available all the year. Its hard to say isnt it ? ATO then disallows deductions that exceed rent. No neg gearing. Now this happens in three years time. They revisit past 2 years and disallow and add penaties and interest.

Lender may not consider rental income in servicing as its unreliable.

The ATO are aggressive in this area and see such arrangements as a rort. Even if its not. Its hard to defend.