As Airbnb property managers, this is one of the questions we hear most frequently.
The other is, “Is Airbnb profitable?” And we understand why.
Whether you’re new to property investment or, a seasoned property investor, the idea is to make good returns, right? The higher the returns the better. However, (as we all know) high returns often come with high risk. And because this can be nerve-wracking, many property investors become too cautious and… sabotage their own returns. So, where’s the middle ground?
In this post, Easy Home Rentals will guide you through some must-know basics that will help you get the best returns and income from your investment property.
Is Airbnb profitable for Perth property investors?
Oh yes. Get it right and it can be very profitable but you must know your product, it’s potential and your target market. Who will be interested in renting your property, why and how much are they prepared to pay?
Becoming an Airbnb Host. (Do It Yourself)
With the ever-growing popularity of Airbnb over traditional accommodation options like hotels, serviced apartments and B&B, it’s easy to get starry-eyed about potential rental returns. Many do. That’s why it’s a good idea to step back and think…carefully.
Here are 12 things you must do when considering ‘do-it-yourself’ Airbnb:
- Research. You’ll find plenty of advice about hosting on the Airbnb website and online so be sure to read it. All of it.
- Read good stories, bad and the downright dreadful, so you have a realistic understanding of what’s involved and where things can go wrong.
- Take time to understand what Airbnb expects from their hosts and the agreements and legalities that surround your responsibilities.
- Expect a lot of competition as anybody and everybody can potentially be an Airbnb host. It’s becoming an increasingly crowded market with stiff competition.
- Know your competition. Who are your competitors? Where are they? What are they offering? Can you offer the same and preferably more—at a competitive price?
- Be realistic about your property. Unrealistic expectations around positioning (both geographic and market) and rental pricing will result in little or even zero, occupancy.
- Determine how much time you can invest in hosting and managing your Airbnb property. Again, be realistic.
- Know exactly what’s involved in making a good return: from standing out online, bookings, payments, key drops, cleaning, laundry, minimum stays and more.
- Apart from the time-commitment, research the costs involved, especially if you can’t manage cleaning, laundry etc. yourself.
- Check your agreements when renting properties that have body corporates. What about your neighbours? Unhappy neighbours can bring a swift end to your Airbnb ambitions.
- Look carefully at insurance; the cost and what you are (and aren’t) covered for. This post by Choice is worth a read.
- Imagine the worst can (and does) happen. Just one poorly-behaved or difficult guest can send things pear-shaped or worse. How will you handle it? What will you do?
Airbnb Property Management. Is it a Better Option? (Done for You)
If you have the time, energy and commitment to manage your own Airbnb property, of course, it’s perfectly possible to do-it-yourself. However, what’s clear is that most people underestimate the time, effort and costs involved. It’s just not as simple as it first appears.
Our Top 12 ‘things you must know’ (in the list above) highlight the most common things potential Airbnb hosts fail to consider when renting their properties. Or, if they do, they misunderstand. And there are consequences— most cost money and include varying degrees of stress.
That’s why Airbnb property managers, like us, exist…to help people like you.
Research Your Options. You Owe it to Yourself.
Regardless of whether you think you can make ‘do-it-yourself’ Airbnb hosting work for you, it’s worth researching your options, so you can fully compare the pros and cons. Airbnb property management is:
- Surprisingly cost-effective and time-efficient
- Profitable, boosting those much sought-after investment returns
- Totally reassuring—maintaining high occupancy rates and importantly, peace of mind.
Like everything in life, Property Managers come in all shapes and sizes and specialise in different types of property management. Be sure to choose an experienced Airbnb and Short Stays Property Management company who have been around for a while and know:
- Your area
- Your suburbs
- Your goals
- Your needs
And remember, talking should be free.
Just pick up the phone and have a chat, or contact us to find out more. You owe it to yourself, right?