The following article is a summary of Soho's carpool series interview with MadeComfy's co-founder Quirin Schwaighofer, where he explains precisely what types of properties are suitable for Airbnb and how homeowners can generate higher returns through the short-term rental market.
Contrary to popular belief, running a successful and profitable Airbnb is not simple and there are many considerations for property owners to consider before taking the plunge.
Firstly, before looking into how you can get your property ready for Airbnb, property owners need to find out if their home is suitable for short-term rental to begin with.
What factors should homeowners consider before renting their property on Airbnb?
Your real estate location is one of the most important indicators of whether your Airbnb will flourish in the short-term rental sector. Areas that are best for Airbnb are places in or near central business districts, tourist attractions, and public transports like airports and train stations.
Before you put your property on the short-term rental market, you should contact professional Airbnb management services like MadeComfy to obtain a revenue analysis and forecast that will give you a realistic overview of whether your property can make better returns on the short-term versus the traditional long-term rental market.
People book Airbnbs by the photo and then by the price. Hence, if your property looks great and is competitively priced then your Airbnb's bookings will skyrocket. In other words, your property needs to be 'Instagrammable'. If your property is empty then investing in quality furniture that is stylish will add personality to your home, making it stand out from the competition.
Lastly, recognising how you are going to manage your Airbnb is crucial as it requires a lot of responsibility and involves numerous steps such as check-in, check-out, securing keys, maintenance, etc. MadeComfy offers property owners a hands-off approach so that you can enjoy your life without worrying about the tedious day to day tasks of Airbnb management. If you are going to go ahead with a short-term rental management service provider then make sure that they provide:
- Full transparency
The MadeComfy Dashboard lets customers see all of the activities involving their properties like who and how many people are staying at the property and what the nightly rate is.
- Trust accounting
Ensure your rental income is appropriately managed and handled through a real estate trust account.
- Account manager
During the onboarding process, we will work with you to gain a complete understanding of your property and how everything works, for example, if there are special items in your home that we should be aware of. Moreover, if you have any questions or concerns you can contact your account manager directly.
Property types that do well on Airbnb
As we touched earlier, location is a key determinant of an Airbnb's success. In general, the most popular property types in coastal areas are houses and for urban area it is apartments. For example, in the peak seasons, holiday homes will do well and locations such as Central Coast and Northern Beaches are perfect examples. And if your property is located in a metropolitan area then looking for that delta to long-term is really important. In general, the properties with the following characteristics perform well:
- 1-2 bedrooms especially if the property is a unit in an urban area
- Newly renovated (3-5 years) properties with modern bathrooms and kitchens
- Clean homes with presentable clean carpets and walls
Ask an Airbnb expert: want more information about short-term rental in Australia? Submit your question to the MadeComfy team below.