The short-term rental market appears lucrative to property purchasers, and can seem like a straightforward way to generate additional income from an investment property.
However, one bad tenant is all it can take to ultimately damage a short-term letting investment, as well as the reputation of the investor.
Despite heated opinions on the issue, it is clear that the rapid growth of the online accommodation platform Airbnb has generated immense discussion around the future of our cities ā especially as the traditional buy-to-let market gives way to a more contemporary short-term rental market.
With the unprecedented growth of the short-term letting market, a string of fears have arisen in both neighbours, strata managers and body corporates of properties that are using the help of platforms like Airbnb to generate additional income.
If these fears are not properly addressed, they can damage the reputation between the investor and the stakeholders while also minimising any potential returns from the property.
However, there exists premium Airbnb management services ā like Airsorted ā who understand the nuances of the short-term letting industry, and can guide homeowners on how to protect their asset while securing returns that, in some cases, are up to 110 per cent more than typical long-term rentals.
To get the most out of a short-term rental asset, there are a number of ways that investors can mitigate the risk associated with online platforms such as Airbnb.
From vetting potential guests, to engaging a management company ā here are 7 tips that will help owners better manage their investment.
Related: The Secret Super Suburbs for Property Investors
Investing in an Airbnb property means a stream of ever-changing guests that will need to be checked in and managed ā by allowing someone to take control of this, while managing and mediating any issues, it can simplify the entire process.
Investors should choose a management company that has internal guest vetting processes and that invoices for their services while remaining professional and easy to communicate with.
If an investor chooses to manage their rental without a management service, they should be aware that Airbnb has various verification settings to help attract the perfect guests.
Before accepting all potential bookings for profit purposes, these settings can be used to check that the property is only going to be booked by the right people. The platform offers the option to ask for verified accounts with photo ID or positive reviews from other hosts, before they can book the property instantly.
It is also good practice to ask guests the purpose of their stay and whether they will be bringing any guests.
If a guest attempts to book the property and they are travelling alone and are from the same city, this can be a major red flag. Always triple check with the guests the reason they are wanting to stay at the property and donāt hesitate to turn guests away if the activity seems suspicious.
Although single night bookings can be profitable in the short-term, a greater turn-over of guests can harm the propertyās reputation in the long run. Daily guests not only carry a greater risk of parties or disturbances, it could also potentially draw negative attention from your neighbours, Strata managers and Body Corporates.
An easy way for issues to form with neighbours and property managers is having guests not being able to access a property. Whether they are knocking on neighboursā doors or milling round in reception areas, it is always best practice to keep guest activity at a minimum to eliminate any potential disturbances.
When setting up or communicating the check-in process, make sure that all instructions are straightforward and obvious to avoid any potential misunderstandings.
Writing and curating the propertyās content on Airbnb is a simple and direct way to remove any undesirable guests. Specific filters such as "no parties" and "no smoking" help attract the right guests for the property. Airbnb also offers additional instructions such a "make a minimum security deposit of $200" to further ensure that the property is only allowing the best guests to stay.
The most detrimental facet of short term lettings for owner/manager relations is not having transparent communications.
Management companies like Airsorted offer a point of contact for Strata managers and Body Corporate members if there is ever an issue with a guest. Airsorted will even introduce themselves to neighbours and property managers to ensure an open and transparent future relationship.
Ultimately, short-term lettings allow owners both flexibility and potentially higher returns ā however, whether an investor is a full-time landlord or travelling ex-pat, the property needs to be managed effectively in order to minimise any conflict with neighbours, guests, strata managers and Body Corporates.
Effective short-term rental properties canāt be managed with a hands-off approach. Airsorted helps to protect your best asset by maximising profit opportunities and providing constant support for your guests.
Click here for more information on how to get your listing Airbnb ready.
The Urban Developer is proud to partner with Airsorted to deliver this article to you. In doing so, we can continue to publish our free daily news, information, insights and opinion to you, our valued readers.
