28 Jul Discover the best locations for Short- Term letting
Location may be important when buying a property, but for short term renters, location is everything. Holidaymakers want to be near the action. If you’re lucky enough to have a property within walking distance of a local hotspot, you’ve got it made when it comes to renting through AirBNB. But how do you make sure the price is right for your potential guests when there are hundreds of houses in the same area for them to choose from?
Sydney is a city teeming with things to do and see, but it’s no secret that certain areas are way more tourist-dense than others. This density means demand, and that translates directly to both AirBNB property availability and an increase in price.
The Eastern Suburbs boasts a whopping 3,200 listings on AirBNB, over 1,250 of which are in Bondi alone. Of the Northern Beaches’ 1,800 listings, over a third are in Manly. It’s clear that our famous beaches are a massive drawcard for tourists, especially those coming from overseas, but it’s not just the surfers that come to Sydney. Our nightlife and culture get a look-in too, with centrally-located Surrey Hills eating up 500 of the 1,500 listings in Sydney’s CBD. (Statistics taken from www.airdna.co).
With guests given so much choice, it can sometimes feel like you’re throwing your fishing line over the end of an already-crowded wharf. The secret to attracting customers is to make your bait stand out. You need to balance the heavy competition with the best return on your investment. That means a little bit of research; knowing which kind of guest you want to catch, knowing who else is fishing, and what kind of bait to use.
As competition ramps up in these areas, prices become more competitive. Check out similar properties to yours in the same area. You will need to expect prices to fluctuate, so looking in on the market every now and then is a good idea. From a guest’s point of view, the cheaper option is the better option when comparing two similar properties. To make your property stand out, you’ll need to provide a point of difference. Think about the unique features of your property. Views of the ocean, an outdoor barbecue area, a fireplace, unlimited WiFi or access to sports or leisure equipment will all feature into a guest’s decision. Modern, comfortable furnishings will help your property become almost like a second home for your guests.
Depending on the type of property you have, prices will flicker between seasons. Over the busy holiday – especially December and January – expect pricing to jump in areas where there is water. Whole houses near beaches can expect a large return in summer, but typically a slight dip in winter. Smaller units or studio apartments in the city will enjoy a fairly steady return year-round. Just like the features inside your property, the features surrounding your property will affect your asking price.
With the popularity of short-term renting climbing steadily, and more and more people jumping into bed with AirBNB or other companies, you’re going to have to work a little bit to squeeze the most out of your property. Having a chat with an AirBNB property manager at Beachside Breaks is worth your time. We know the ins and outs of this slippery market and can help to set you on the right course.
When it comes to renting out your property short term, it’s no secret that the best time to start was a couple of years ago. But the second best time to start is right now.