SHOULD YOU AIRBNB & SHORT TERM LET ?

Renting your property as a holiday home/short term let is not a one size fits all.

You need to asses what your looking to achieve and whether short term letting is the correct decision to meet your personal or business needs.

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There is an array of things to consider:

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Are you just looking for the best return?

Short term letting when managed and promoted efficiently on AirBNB, Booking.com, VRBO and other OTA's along with Close to home, often provide a better return than alternatives like long term rentals. This is situational on your property and its location.

We're not here to convince you to list with us. We are here to provide an efficient service for those who decide that short term letting is the right decision for them. 

Some properties would be best suited to short term lets (AirBNB etc) for 6 months of the year during the peak period and having a long term Tennant in for the winter months.

while properties in a saturated market or those with 'short term flaws' may be best for renting out long term. 

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Do you require flexibility and use of the property?

Are you looking to utilise the property for holidays, storage or friends and family to use on an as needed basis? This can be tricky with a standard long term tenancy. Short term letting provides you flexibility. With our 'Owner portal' you view available dates and block these to utilise the property yourself.   

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What duration and time of year are you looking to let out your property? 

Some properties would be best suited to short term lets (AirBNB etc) for 6 months of the year during the peak period and having a long term Tennant in for the winter months.

while other properties in a saturated market or those with 'short term flaws' may be best for renting out long term. Then we have the bulk of properties were short term lets are better year round.

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What are the IRD/tax implications?

Are you conceding any tax implications in assign if short term is right for you? Talk too your accountant to understand your personal situation and potential tax liabilities.

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Regular upkeep and property inspections?

Are you house proud? have perfect landscaped grounds? or like your property to be kept up to a certain standard? then short term letting gives you that flexibility, 

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Online market place tax?

As of the 01.04.24 New Zealand introduced the new online market place tax. This has an implication to those non GST registered owners. We handle this on behalf of our property owners and take care of the flat rate credit scheme process. 

Talk to your accountant to find out more or see the following link for a summary from IRD

https://www.ird.govt.nz/sharing-economy/online-marketplaces/gst-on-listed-services 

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Do you require consents or approvals to operate short term lets?

If you're planing to base your long term strategy off short term letting you may like to understand your compliance requirements, if there are any effecting your property.  

You may need to apply for a resource consent under the local district plan rules. Contact your local council to find out more. 

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Upfront expenses?

A short term rental will typically require a higher upfront cost compared to a long term rental, as the rental should be fully furnished and the property well maintained to an acceptable short term letting standard. We can provide packages for furnishing your property and organising property updates if required. Additionally, premium photos are a must to maximise your click through rate, this is the first thing a potential guest sees and what can make you stand out against other properties. 

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Insurance?

Insurance companies look at short term lets differently compared to a long term rental. 

Some have no change, others increase your excess and premium while others may not provide cover. Contact your insurance company to understand your situation or contact us and we can provide you with a reputable insurance broker.  

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Market saturation?

Certain areas have an abundance of a particular type of property, this can greatly effect what these properties can earn.

Simply completing a furnishing update can set your property apart and make it stand out. Other times this may not be possible.

This is very much relative to the type of property you have and the market demand.

A simple and dated house with old furniture may out preform 10 other new build houses in the same street because of the nightly rate price point. It is not in competition with the 10 houses while the 10 new house are all fighting for the same guest. On the flip side, a new architectural house in an area of older homes, or one with a view, outdoor bath or other unique feature offers a point of difference and performance is increased. Even the quality of your photos and your listing title greatly effects the visibility of your listing, 

You do not need to offer a point of difference to short term let, however you should understand what value your property can provide and in return what returns you can make. 

 

We can asses your property and assist you in making a decision that's right for you. 

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If you have any questions on the above just sing out 

 

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