Short-term letting is fast becoming the choice for savvy property investors, using platforms such as Airbnb to tap into nightly rates of up to 110 per cent more than they would see when renting long term.
Tim Hill, Queensland general manager for Airbnb management specialists Airsorted, gives his insight into finding the best suburbs to invest in, and reveals what he has identified as being “Super Suburbs” in Sydney, Melbourne, Brisbane and Auckland.
Airbnb disrupted the property investment landscape in 2008 when they introduced the concept of accommodation at a stranger's place instead of conventional hotels, and have since spread their reach to 81,000 cities worldwide.
Working as the GM for Airsorted Queensland means Tim has had the privilege to meet with potential clients throughout the region, and gets the opportunity to hear their stories and see their homes.
Take for example Andrew, owner of an 80s-style two-bedroom and two-bedroom in Auchenflower, Brisbane.
Andrew recently received the news that his long-term tenants would be moving on, and that he would be put in a position where what was considered a regular but small additional income would be coming to an end.
He was sceptical about the short-term letting industry, being familiar and feeling safe with the consistency of long-term rentals.
It was easy to change his perspective on this when he saw how short-term letting such as Airbnb could bring him in 78 per cent more, with an expected income in the first month of $2,776.
The question is, why would Andrew’s place in the sleepy inner suburb of Auchenflower be performing so well? The secret to Andrew’s success comes primarily down to location, an often surprising factor considered he is not in the CBD.
However, areas such as Auchenflower are identified as being accessible to multiple target markets and therefore provide fierce competition to their more modern CBD counterparts.
In Andrew's example, his modest two-bedroom Auchenflower apartment is within easy walking distance to The Wesley Hospital as well as the Suncorp Stadium, with the CBD still within easy reach.
Positive reviews are what drives success in Airbnb, you need to provide a high standard of cleaning, brilliant guest communication and an easy check-in for guests are all a must if you want to succeed in the short-term rental game. At the end of the day you are competing directly with the likes of hotels.
If you are looking into the investment opportunities for short-term letting and want to find the next Super Suburb try and follow the Golden Quadratic Formula.
See Airsorted’s top 10 list of secret super-suburbs to get the most out of your investment property.
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