Would you AirBnB your IP ?

I just wanted to know what are people's views on short term rentals for their IPs - AirBnB, stayz etc.
Would you consider it?
Why yes and why not ?

 

I would consider it if it will deliver much higher net return and pretty consistent booking. Just because I'd consider it doesn't mean i would able to do it though

 

What you mean, why wouldn't you be able to do it ?

 

Of course, could be a win win if it means you also get short term use for yourself or family/friends. If its in a good location you could also add in house exchanges. Just need to be close by or have a trusted person to handle change overs.

 

Most of my IPs are interstate or far away, which mean I would need PM specialise in short term rental. From initial search their management fee is high as it includes a lot of things, so for it to work the airbnb return should be higher and vacancy to be very low

 

I have 2 IP that have been converted to short term rental. First one started approximately 20 months ago. We had tenants leave and had some difficulty renting it out. We had a friend that was doing it and we also thought about it so we gave it a shot and so far it has been a worthwhile endeavour we started our 2nd one 8 months ago and can't complain.

 

Hi @Brisbane04 do you manage them yourself? Are they close to where you live ?

 

I would consider it if it's either close to city, beaches or have great views but none of my IPs have that.

 

You can still do it even if it isnt. You'd be surprised on the demand in suburbia too. But those features you noted would help for sure.

Ps. I just came back from a 4 day (3 night) stay in Melbourne, somebody's small (~20sqm) studio out in their backyard in Fitzroy. Fitzroy is a lively place!!! You can book their property via Airbnb or bookings.com


Im like Brisbane04. I have one I started Dec 2014, really strong from day dot! Started the second one maybe September/October last year?
Better rental returns.
But they are both really easily accessible via Public transport.

 

My parents have been doing it the past 6 months with their 1 bedder in mcmahons point, and feel that it is superior to the long term letting. That being said, they can get 6.5k for 4 nights over NYE, so that might help a smidge. As @Gockie has pointed out previously, once you get the changeover routine down pat (changing sheets towels etc), it can become quite efficient.

They use AirBNB and have used gumtree early on (but mum doesn't like it, although nothing untoward has happened).

 

OMG! That's awesome. In hindsight I should have set much higher rates than I have for NYE... I got mine already booked back in March! Still, the rate is still very solid!

 

From a finance perspective - lenders will likely want to see a year or two of individual tax returns in order to accept the Air BnB income.

Long story short - the requirements for proving income from Air BnB are generally tougher compared to a normal IP whereby you only need to show the most recent rental statement.

Cheers

Jamie

 

Apparently the strata is around 3.5k/quarter at the moment (common area upgrades), so it's well and truly needed! Unfortunately the balcony only has views of luna park, but the car space has bridge / opera house views ha!

 

You'll find that there are people who only want to stay overnight and they don't care if it is close to beach, views or city.
I personally do this when i am on a long trip where i would try to break the trip by staying at any place good.

 

Im actually looking at this as a creative way to afford a higher priced PPOR. We live in a holiday beach location just north of Sydney and we are thinking of a small acreage which either comes with an existing granny flat/ self contained living area or ability to add one which we will rent out via AirBNB or through our local holiday rental portals. This will provide us with a bit more income to cover a slightly increased loan repayment on a bigger property in the suburb we want to live. I could see this working in our circumstance because we will be close to the property being rented and can undertake the additional requirements of a holiday rental (changing sheets, stocking pantries etc etc) without having to outlay additional cleaning costs etc since we will be living on the same piece of land. Anyway, just a hypothesis at this point in time.....

 

Hi Teetotal both the properties are in my home town of Bendigo. We clean, do the laundry greet etc to keep costs down. Cheers Martin

 

We did story on this this month in the mag. It's becoming quiet a thing including businesses setting up to manage Airbnb rentals on behalf of owners, but you need both the right property and the right mindset for it to work – mind you it can increase your income by around 50% based on our research.

 

So where do you stand with CGT under this scenario if the let is part of your home?

 

I would. But I don't think I actually would.

 

Hahaha, thats cryptic. Why wouldn't you ?