How to invest in property for short-term rentals? What makes a good holiday rental property and which property features are guests' favourites? More importantly, what's an ideal location for a holiday rental property? In this article, we look at a successful Airbnb listing to understand what makes it perfect for short-term. Do you want a hint? It's a perfect mix of location, property features and efficient management.
The short-term rental market is growing across Australia. There’s been a 29% increase in the number of Airbnb listings in just the past twelve months, according to AirDNA. If you're thinking about investing in property for short-term rentals and don't really know where to start, or if you already have a property but would like to know if it's suitable for short-term, read on. We chose a successful Airbnb listing managed by MadeComfy and broke down the reasons why it works so well.
This top performing property is located in Bondi Beach, Sydney. This apartment is almost fully booked for 4 month ahead and the guest reviews are very positive. Take a look at some photos below:
Here are the reasons why this property is successful on Airbnb.
- Some suburbs perform better than others - Bondi Beach is by definition a top perfoming suburb because its located in a touristic area visited by a lot of tourists. According to Tourism statistics, over 1 million visitors make their way to Bondi beach each year. In Sydney, the eastern suburbs and also central suburbs close to the CBD and business centres are among the top performers for short-term rentals. If you would like to know more about top performing suburbs, check our latest whitepaper which covers this topic and also gives you tips on how to prepare your property. Location is a number 1 priority so be mindful on where to invest.
- Property is close to the major tourist attraction. In the infographic What Airbnb Guests Really Want, we talk about the fact that 38% of the Airbnb guests love being close to the beach. This property offers that. Short-term rental properties that are close to touristic highlights or major landmarks (universities, hospitals, convention centres) generally do better due to higher demand. It's important that the property is not only in a top performing suburb but also in a convenient location.
- Everyone loves a good view. There’s nothing more satisfying than an early-morning coffee in the balcony. If your outdoor area has stunning surrounding views, even better. Special tip - flaunt your property's outdoor spaces such as balconies and courtyards to fully enhance the enclosing landscape, and have plants and cosy furniture when you are furnishing these areas.
- An amenity highly valued by customers is parking, especially considering that finding a parking spot in the city is becoming a rarity. Having a private parking next to the house or an underground garage such as this Bondi property is a plus. If your property doesn't have that, it's important to include in the listing what are the available parking options close to the property.
- The more your property can accommodate, the better. Does your apartment have 2 or more bedrooms? Why not arrange some different sleeping arrangements? Think about placing different sizes of beds in different rooms to offer guests more possibilities. Being able to accommodate families will help you reach a winder audience.
A great property by itself doesn't generate a great income without efficient property management. See what else makes this property stand out from the crowd.
- A great listing - Let’s start off with some tips from Airbnb itself. First, have your listing up-to-date. The more information you can provide, the more reliable you’ll come across to the guest. The title needs to be catchy and in the description, you should add relevant and clear information about why guests would love to stay at the property. Get some more tips from Airbnb here.
- Great furniture - Take a look at the comparison below. We have the property we discussed above on the left and, on the right, and a self-managed property with the same size, similar features and located on the same street. There's a clear difference in the quality and style of the furniture. Investing in good quality furniture pays off: The average nightly rate of the first one is around $200 more expensive than the second.
- Great photography - A great property needs to be properly showcased. Investing in high-quality photography will attract guests and make them book. It's best to arrange a professional to do it than trying to "DIY" to make sure you highlight the best features of the property.
A high turnover of short-term rental guests means constant property inspections, frequent housekeeping and also guest management by the property owner. Property management for short-term is no easy task, but is worth the investment.
Not convinced that you have the time and know-how to to deal with a short-term rental property? Hiring an Airbnb management company like MadeComfy can make the difference between your property getting lost among many or becoming a 5-star listing. Click on the banner below to see how we can help you out.