Traditonal rentals versus airbnb

Hi guys,

Thought it would be interesting to post this case study. We have two IP's- one in which we rent out traditionally and the other we have on Airbnb (which I have written about separately).

We know our neighbours to our IP which we rent out traditionally and our tenants recently asked our PM whether they could extend their lease (several months before it expires). We thought we would ask our neighbours if they had any thoughts before extending.

Unfortunately our neighbours (who are lovely and pretty laid back) did not come back with very positive news- they have four people (lease says three), three dogs (no dogs on the lease and they even asked us if they could have dogs a few months into their lease and we said no) and are loud, constantly have people coming and going, parties etc. Our inspection report showed a kitchen cupboard door has also come off. Our PM is working through these issues at the moment.

This is compared to our airbnb where we've had lovely guests, no complaints, and the apartment gets cleaned 2-3 times a week (not to mention 2.5 times the amount of income )

This isn't a discussion on whether we could have poor property managers/ bad tenants etc but more to show that airbnb isn't as bad as the media often portrays- and I know which is my favourite property to own at the moment

 

Even if airbnb guests do party, it is only short lived as general stay period is 4 days. assuming 10% of your guests party like its 1999, then neighbors will put up with it for only one month. compared to long term tenant that likes to party and is locked in for at least 6 months!

 

Not sure its completely a fair comparison though. They're completely different styles of leasing.

Only certain properties would be viable for airbnb, and the work involved is quite a bit different.

But I do agree with the point that behaviour wise, short term guests are anecdotally better behaved in general - its been my experience with airbnb as well.

 

This is the choice which people now have that wasn't available 10years ago.
I think it makes sense to use AirBnB where the numbers do stack up.
Traditional-rental supply will reduce as a result, which will keep rents high.
Win Win for the investors from both sides.