There are many benefits that come with a short-term rental property.
From increased earning potential to ongoing flexibility as well as the ability to attract tenants, the short-term route can have long-term benefits.
Whether you have a spare room an empty property, utilising your available space as a short-term rental is a lucrative venture allowing you plenty of options.
Short-term rentals are in high demand Australia-wide, with the furnished space rented out for a short period of time, often to individuals on holiday or on business. Interior designer, Gary Hamer
Rental removalist expert Blake Watson, believes that “short-term rental offers an earning potential which is up to 11%, this is because you are able to increase or decrease nightly rental rates based on the demand for a season.”
Even better, the benefits are not just limited to the owner, as tenants reap benefits from opting for a short-term rental too.
So if you’re looking to leverage your existing space as a short-term rental, here are 3 major benefits you should know about.
1 – Flexibility
As the owner of a short-term rental property, you have the flexibility to decide when your space will be available to guests.
Plan to be in your home for only a portion of the year? A short-term rental puts you under no obligation to have tenants in your property for extended periods of time, but instead for when it suits you best, leaving the space available for you when necessary.
Interior Designer, Gary Hamer, describes what it’s like working with short term rental property owners, “by creating a space when they need a home away from home, short-term renters love the personal and comforting vibe he incorporates into the space.”
Flexibility extends to the tenant too, who is likely to have more space and privacy in your property than they would in a hotel room. Renting a property for a shorter period of time allows greater freedom and less commitment for the tenant, who may find that the arrangement works best for their circumstances at the time.
Unlike longer rental periods, a short-term rental encourages tenancy through the flexible conditions and ease of movement when necessary.
2 – Earning Potential
Unlike a long-term rental where rent prices are rather fixed, owning a short-term rental allows you to take advantage of demand and high-peak times of the year. This may allow you to charge higher rates and leverage a greater financial return as a result.
Demand may also increase during times when events are held locally, when travellers expect to pay higher prices and are willing to pay for prime location. While some people consider a long-term rental situation as being the more financially sound choice, the ability for rental prices to fluctuate with a short-term rental may actually surpass the earnings from a long-term rental strategy.
Business owner, Sacha Davis, notes that short-term rentals are a great way to maximise returns, saying “they can get up to 40% higher than a permanent rental. While demand increases in areas where people are attending sporting, cultural, corporate and food/wine events.”
3 – Tenant Benefits
Short-term rentals are appealing to tenants for many reasons – whether they are on holiday, between homes or trying a new area. Tenants are often provided with a higher level of comfort than a hotel, with amenities they would find in their own home.
Short-term rentals feel like home in a way that hotels don’t. As fully furnished and private spaces it’s far easier to relax. A home away from home, on your-terms, at a price that works for you, is perfect whether you’re working, travelling or just settling down for a short period of time.
The returns from short-term renting can be great, but the effort to get your property in a position to do so can be extensive. Put your feet up and get and chill to take the stress out of it all.