We know a lot of home owners are aware of the opportunity to make an extra income from renting out their homes on Airbnb during the Christmas and New Year’s period, however, we wanted to discover what other key times during the year in Sydney that owners could make significant returns.
Based upon the analysis we undertook, owners have the potential to make an additional 88 per cent rent on a normal short-term booking during Mardi Gras and an extra 35 per cent by renting out their homes over Easter. A new and emerging period which owners could also achieve higher returns is during Sydney’s Vivid Festival, with initial bookings 34 per cent higher during the Festival dates.
1. Mardi Gras, 4 – 5 March: In 2016, over 20,000 international visitors arrived in Sydney to witness the world-renown Mardi Gras parade, spiking demand for accommodation significantly during the first weekend of March.
Accordingly, based on bookings we've already taken, one of our owner’s homes, a 2-bedroom apartment in Darlinghurst during Mardi Gras will earn $434 per night, which is $203 more per night than compared to bookings taken either side of the parade. This equates to a total of $609 more for this owner from a 3-night booking. Further, by utilising MadeComfy’s service, we’ve achieved an average of 27 per cent more rental income for our customers compared against other self-managed properties listed on Airbnb over Mardi Gras.
2. Easter, 14 – 17 April: Similarly, over the Easter break, our analysis has found families who are planning to go on holiday could earn an extra 35 per cent by renting out their home during this period. The increasing demand from locals taking ‘staycations’ and booking accommodation within their own city to experience the lifestyle and culture a different suburb has to offer is fuelling this demand. While the influx of inter-state and overseas travellers looking for accommodation in Sydney during the Easter break increases significantly.
Based on the bookings we've already taken for Easter, one of our owners’ who has a 4-bedroom home in Pittwater was able to secure $887 per night, which is $226 more per night compared to other bookings outside this period, giving this owner an extra $904 for the 4-night booking. Comparing the nightly rates of similar self-managed properties in the Pittwater region during Easter, our marketing efforts have resulted in a 51 per cent higher booking price for this owner.
3. Vivid Festival, 26 May – 17 June: A new and emerging period which owners could also reap larger returns is due to the growing popularity of Sydney’s Vivid Festival. In 2016, the Festival recorded its largest attendance yet, with 2.3 million visitors. With its growing notoriety, a larger proportion of visitors are travelling from inter-state and rural NSW areas to see the stunning displays projected on to iconic Sydney landmarks.
We have already taken several bookings during the Vivid Festival, with one of our owners who has a 3-bedroom home in Neutral Bay being booked for $268 per night, whereas outside this period the apartment can be booked for $200 per night. A 34 per cent increase in rent per night for the owner.
For this analysis we utilised our analytical pricing algorithms that measure the supply of other short-term rentals and hotel rooms in a local area against booking demand between specific dates. This then enables us to determine the optimum price to list properties, to ensure the maximum occupancy and rental income for our owners.
Our analysis has been picked up by The Australian Financial Review and the full article can be read here: Airbnb rent expected to double for Sydney's Mardi Gras
For more information about the regulations surrounding short-term renting in NSW, you can read about it from our article here: Short-Term Rentals to face “light regulations” in NSW – What does that mean for you?
MadeComfy provides an end-to-end property management service, which means property owners don’t need to do a thing when they hand over their keys. MadeComfy makes the process of earning greater returns from short-term renting effortless, achieving up to 40% more than long-term rentals and self-managed Airbnb listings. Get in touch with us today to see how we can help!
Image credit: The Seattle Lesbian