Who doesn’t want to put their feet up and watch their investment property make some money? Listing your home on short-term rental sites like Airbnb and BookaBach can be an excellent way to get great returns on your rental.
Airbnb and BookaBach have completely changed how we holiday, moving away from traditional letting methods (for example through a real estate agent) to connecting the owner and renter directly, usually on short term lets.
In Kapiti there are around 144 properties available on Airbnb, and 213 on BookaBach. As well as catering to tourists and holidaymakers, we understand anecdotally there is high-demand for short-term letting—potentially influenced by the work happening on the Kapiti Expressway to the north and Transmission Gully to the south, not to mention weekenders from Wellington.
It’s now easier for owners to use different renting methods to get a return on their property. We’ve seen recent reports of landlords in Auckland’s CBD choosing to only rent out their apartments on Airbnb instead of relying on a long-term tenant because of the higher returns—and with occupancy rates sitting between 80 and 89 per cent, it’s an attractive option.
While there can be a bit more work around booking guests and handling cleaning, short-term rentals can work well—if you’re willing to take the risk and uncertainty.
Some other issues to consider include:
- Securing the right insurance,
- Working with an accountant to understand your tax obligations,
- Maintenance costs with a higher turnover of tenants, and
- How much property management you really want to do.
Owning a holiday home has an added bonus in that you have somewhere to holiday yourself—and if you structure it right, the house should pay for itself.
Financial details need to be carefully worked through if you’re considering a holiday rental. Make sure you chat to an accountant and a trusted mortgage adviser who can help guide your application with the banks to secure your property. Then you can put your feet up and let it get to work.
Contact us to discuss your options.