With summer nearly in sight, have you considered whether or not your property is suitable to become a short-term holiday rental?
Here are a few considerations to keep in mind before you take the plunge.
Assess your location
If your home is in a less than desirable suburb with no sand in sight, you may have difficulty drawing in enough travellers to make short-term renting efforts worthwhile.
Properties located in major holiday destinations or urban centres are poised to bring in the most traffic.
Your main clientele will be holidaymakers and individuals travelling for business, so the location should make sense for these groups.
In addition to location, be sure to look into legal issues associated with short-term leases. Check that renting your unit to short-term tenants is allowed by your real estate agency and strata committee.
Is the price right?
Conducting a cost-benefit analysis is a good idea before you put your home on a short-term rental service or agency.
Look at similar listings in your area to see what the going rate is, and decide whether you will rent by the night or on a more long-term basis.
There are a number of expenses that come with renting your property, with some short-term rental services charging a certain percentage per booking.
You’ll need to consider cleaning costs as guests will expect their accommodation to be cleaned to a professional standard.
Any income you earn is subject to taxation, so be sure to research the local laws and to set this amount aside.
Finally, renting your property will cost you in terms of time – booking, maintenance, and marketing efforts all take time and effort.
Protect your property
Although most short-term rental services strive to provide a safe experience for both tenants and landlords, there is some risk associated with allowing a stranger to stay in your home.
Factor in the cost of property insurance, ask tenants for a security deposit and make them sign a booking contract.
Entice holidaymakers
Short-term tenants have high standards for properties, so to make yours competitive you’ll need to make sure it’s up to a standard they would expect.
Stylish décor, fresh linens, and AV facilities should all be included in the rental, with many travellers expecting free Wi-Fi.
A guide to local attractions, a well-stocked kitchen, fresh flowers, and a complimentary bottle of wine can add an extra touch of class to your rental.
At the very least, be sure to leave out extra towels and clear instructions for how to use the property’s appliances.
The bottom line
If you have a chic property in a desirable location, there are a number of real estate agencies that now make it easy to rent out to guests at lucrative nightly rates.
However, be sure to check all applicable rules and regulations first, and work out the small details that will make your property stand out from the crowd.
