Would you AirBnB your IP ?

I am doing it in Melb as well, but due to fierce competition, market has not been as good as previous years, but I am still hanging on there, hopefully it will get better as spring and summer time comes in. Generally for the past three four months, it's been pretty quiet, but I still get about 20% - 30% more net comparing to long term leasing.... It's really not for everyone to be honest, the most annoying thing is the check in and out thing, cleaning. It's good for retirees or someone who doesn't work full time or has flexible working hours.

 

That's what I was going to ask, how does it compare to a normal rental.
I looked at a dual occupancy holiday rental, although it got more in, I didn't want the hassle of cleaning etc. and extra wear and tear.

 

I heard a young guy on the radio last week, he and his mate set up a business organising air b n b let's and take a percentage. It is called Hey Joe.

 

Good name, where did they get that from?

 

No, they sound pretty tech savvy but not experienced enough to comprehend any similarities between the business and the great left hander himself.
They (apparently) had a mate named Joe who had a flat in a des res location and travelled often but did not have the inclination or tech skills to set up the air b n b on it himself. They went from there.

 

Hi Atang. May I ask which suburb is this?

 

i have an IP that's 8kms from Melb airport, we are currently renovationg- nearly finished a full cosmetic Reno on the inside.
The house is near Broadmeadows (rough area). Would there be any demand for it due to the proximity to the airport? Also has two train stations within walking distance (one 5 min walk one 10.) it's a 3 bedroom house. Only reason I ask as yield is pretty crap, air BnB yield would be way better if there was any demand for a house like ours.

 

Its best to see other AirBnB's in that rough area and see how they are doing and what they are charging. By looking at their calendar you can see what their occupancy is too.

 

So Excalibur, based upon the numbers you posted, is it right to assume that the GROSS rental for Airbnb is about double what you'd get for a permanent rental?

 

that is correct! I believe you can make that + maybe another 10-20% more if you have multiple units in the close proximity or in the same building and if you do cleaning yourself (although I would not recommend it). Automating the process as much as possible is the key to making more money with minimal input of your own time. @Depreciator has a nice set up where his property is next to his house. It is ideal if its in good location with public transport a garage is a positive too.

Have a look at the area around your place and see what is available. Don't just rely on the rate they advertised. It's a trick to lure people to look at their places. Pick 7 days on average, including weekend too (usually higher rate). Then proceed to check out to see how much it would cost. Divide that by the amount of nights and you get average cost per night. Do a conservative 85% occupancy (hotel industry in sydney last year is 86%.).

 

Tx. Gee 85% occupancy. That's pretty good.

 

In CBD you should be getting between 90-95% occupancy. The further out from CBD the lower occupancy I find. Although those paces (houses or semis) tend to charge more for the space, which when all the numbers are added up will show you that you can still achieve double the long lease. I find that the break-even point is 50-55%. That break even means that what you doing short term you could of made with long lease. Anything above that is profit as in you are making more than you would with long term lease.

As someone else pointed out a lot of people start doing it then stop because they are not prepared and don't know what to expect. start by following people around your property and see how their calendars are changing on daily basis. that will give you indication on what the occupancy is.

 

Slightly off topic here, but i was wondering if anyone had a property available to rent for 2 nights in late December for 8 people near a beach (either Central Coast way or Jervis Bay way)? Getting pretty desperate now, as not many properties are available to rent or want a minimum of 7 night stay. If you might have something that suits me, please PM me. I'd be keen to hear from you asap

 

Hi @kimba88
If you want 2 nights you'd better go to a hotel or camp... as a host I'd rather take a week long stay or longer, there is the demand there, especially during the peak periods.

Ps. Even with camping you have to book ahead.

 

he doesn't have any issues with his neighbours? doing airbnb..

 

Nope. He did live there at one point so he knows the neighbours, so I guess that helps.

 

Unfortunately, its very hard finding a hotel that will accommodate 8 people in the same room. I'm hoping something will come up anyhow

 

Hi Kimba You wont get any accommodation that accepts 8 people in the same room. Fire regs. Did you mean a large house?

 

Yep, meant a large house. Haha

 

Anyone knows of any airbnb property management services based in Geelong?