With Airbnb’s increasing popularity among travellers, those looking to invest in property have idealised the market value of short-term holiday rentals. One could earn 20 to 50 per cent more rental income for a furnished, well-located address marketed as a holiday rental as opposed to a long-term, private rental, so it’s easy to see the appeal. Though, with many leaping at the opportunity to turn investment properties into short-term accommodation, it’s wise to take a step back and objectively evaluate the risks and rewards associated with holiday rentals.
Overshadowed by the allure of a higher income potential, maintenance fees are an often overlooked reality of managing a short-term rental property. Many underestimate the costs of sheet-laundering, toilet rolls, soaps, house-cleaning services and furniture when considering transitioning a property into a holiday rental. Not to mention, the seasonality of holiday rentals’ demand may see a property remain tenant-less for more time than is financially comfortable. I discussed short-term rentals and their investment value with The Weekly Times. Give the article a read here for more thoughts on the topic.