People are talking about the financial benefits of letting out properties short-term on Airbnb; but before investors get too excited it’s good to consider the full picture when using Airbnb in Auckland.
Daily Hands-on Management Expected
Long term Tenants usually like to keep to themselves for the most part. Tourists on the other hand have high expectations, wanting daily management of their accommodation and needs. Understandably, Airbnb guests expect the property to be regularly serviced including cleaning, the towels replenished, provision of kitchen, bathroom and toilet consumables, provision of tourist information on the area, and many other duties for the host to “deserve” a high review rating from them. This review rating is something owners become heavily dependent on to attract more potential Airbnb guests to achieve an acceptable occupancy rate.
Always on the Hunt for Guests
Rather than interviewing, reference checking and selecting tenants once a year, owners on Airbnb must deal with emails and calls daily throughout the entire year to keep the property vacated, as most guests will only stay for a night or two. It is difficult for Airbnb hosts to skip the slow winter season with a fixed term tenancy, but rather are out in the market trying to attract bookings in the sparse tourist market, at risk of long vacancy periods or heavy discounted nightly rates.
Owners Pay the Bills
Just like in hotels and motels, Airbnb guests expect the property owner to pay the Electricity, Gas, Internet, Sky, Consumable and Housekeeping bills.
Increased Wear & Tear
With so many guests staying in the property and your inability to adequately reference check each guest, it’s likely a few inconsiderate guests will use the property inappropriately (overcrowding, parties, drugs etc..). This will increase the wear & tear on the property potentially increasing the repair and maintenance costs for owners. Hosts can also be at risk of not being able to recover the costs of damage over the holding deposit charged.
Is there Really a Better Financial Return?
With the increased cost of providing services and consumables coupled with the occupancy rate owners need to calculate the net return. Often the financial benefits of a stable long term tenant paying regular weekly rent far out way the risks and perceived benefits to be gained from high nightly rates with Airbnb.
When deciding what’s best for themselves and their portfolio, investors need to decide whether they have the time and ability to daily manage their properties, or if they’d rather have a passive investment managed by professional property managers, so they can receive a regular return and live life uninterrupted.
To discuss your options and to explore ways you can more efficiently manage your property contact April Vaudrey at Quinovic Property Management in Takapuna. Call April on 449-2004 or 021 844-531 or visit our office at 166 Hurstmere Road, Takapuna. Email april@quinovic-takapuna.co.nz
