Calibre Real Estate’s Co-Founders , Alice & Justin Hagen own a property in the Sunshine Coast Hinterland that they short term lease on the popular holiday letting site, AirBnB. Given that Calibre Real Estate are in the business of longer term leasing & property management, it’s interesting to discover why they chose to pursue the route of short term holiday letting instead. Alice & Justin reveal to us their top tips about short term leasing.
1. What have you found are the Top Three Advantages to short term leasing your house?
There can be fantastic financial advantages, if you set it up correctly. So this would include;
- 1. Higher yield than longer term leasing
- 2. The higher rental yield then results in a better cash flow and;
- 3. When managed correctly, it’s an excellent way to build your property portfolio
2. What have you found are the Top Three Disadvantages to short term leasing your house?
1. Forecasting for cash flow is difficult because you aren’t guaranteed that it will be occupied all the time.
2. There’s more time and work involved in managing the bookings & the maintenance of the property
3. We have a higher risk of wear & tear due to the reduced screening process through AirBnB (compared to how Calibre would typically screen a long term lease tenant).
3. What basic furnishings are required?
Similar to styling a property for sale, I believe that furnishings are very important to attract quality guests. In our Airbnb property, we include a Nespresso machine with pods, soda stream and everything that you would typically find in your own home. We found this has helped to make people feel as though they are on holidays as soon as they open the door. It’s also important to include matching towel sets, we also include sanctum organic hotel range of amenities for that added touch of luxury.
4. How much effort should you put into decor?
From my experience, guests like to experience a hotel quality finish but at the same time want to experience a familiarity with the property. Those added stylish touches really can give a lovely point of difference to your property.
5. Do you worry about expensive/bespoke items, in case they get damaged/worn?
When setting up our holiday house as an Airbnb property, we firstly explored the available landlord insurance options for short term letting. We came across Terri Scheer’s short term letting policy. With the assurance of knowing that our property is insured, along with the security deposit that Airbnb holds for 3 days, we have had no incidents in the past 2 years. If you are considering setting up your property as an Airbnb property, you will have to allow some slight damage such as broken wine glasses or crockery, accidents happen. When furnishing our house, we purchased extra glasses, plates and cutlery that is on hand, should one break during a stay.
6. What styling tips seem to work well?
Style according to your property and niche you are wanting to attract. Generally speaking, a clean neutral palette appeals to a wider market.
Here’s some other financial advice articles we thought you might appreciate :
- 5 Things You Need To Know About Claiming Tax Depreciation on Your Property
- How To Choose the Right Landlord Insurance For You
- 8 Value Adding Improvements to Secure Better Rent Return
- The Best Financial Advice You Need To Buy Your First Home
- How To Buy A House : 9 Things You Need To Know Before Signing