With high season quickly approaching, the Australian tourism industry prepares for full capacity and add-on extras like booked tours and overflowing restaurants. But how do property investors maximise their returns during peak periods?
The turning tide of investment properties utilised by holiday makers was an easy sell to a smart investor. Investments in bricks and mortar are no longer seen as a slow return asset, one to purchase and pay off while hopefully watching it grow over 40 years. When optimized to their full potential, homes can quickly become viable cash flow generators, helping many people reach their next investment goals and pay off their properties sooner.
“When a space is created to enhance its best qualities, marketed effectively for its location and positioned to its ideal market, property owners can expect great returns and peace of mind from their short term rentals,” says Melbourne property management specialist, Stephen Grocott of Propertifolio.
The trend for travellers to seek a ‘real life’ experience, whether for professional or recreational stays has reached a new peak that has seen platforms like Airbnb boom around the world. With reports of better maintenance and returns, even seasoned investors with long term rental histories are seeing the benefits of short term letting.
This exquisite property in Elwood is fully booked by corporate travelers
While long term renters were once seen as guaranteed occupancy and steady returns, the predicted increase of growing vacancies, coupled with horror story worthy damage bills and limitations like no flexibility to use your own space if required, has found many owners searching for solutions. But is it as easy as simply switching to short term rentals, listing on an accommodation site and watching the cash flow in?
Although local and international travellers are moving away from sterile hotel environments and looking for a more personal stay, visitors still tend to want all the hotel benefits and convenience, like 24hour communication, professional presentation and attention. That’s where the idea of short term rental can come undone for many people. Constant cleaning, maintenance and 24/7 availability can definitely put a dampener on the idea of more freedom with investment properties. It seems this is where professional property management is also seen as the smart choice for investors.
“We could see this vacation trend shifting twenty years ago in Europe. People were looking for unique holiday stay experiences, but when home owners saw all the work it took to maintain the expected standards, it became too time consuming and overwhelming. But to an experienced concierge team and hospitality industry experts, delivering an outstanding experience every time is our strength. We take care of the details, enabling you to focus on your priorities and enjoy the freedom and returns,” says Stephane Guerin from Propertifolio.
What’s also good news to the average home owner is it’s no longer the fanciest homes with beach front views, attracting tourists and travellers. Unique home experiences are on the rise, opening up a whole new opportunity to maximise returns on your investment. What might be considered small, convenient apartments close to airports can see a great return for short term rentals capitalizing on visitors seeking comfort between, or after long haul flights; while homes close to stadiums can take advantage of increasing rental prices during sought after events.
Location is still a keyword when discussing property investment, however we are no longer limited to traditional ideas of a great location like close to schools or city centres. When talking short term letting, homes can be highlighted for convenience to cultural interests and tourist attractions, or marketed towards professionals if close to a conference centre. With the rise of interest in eco design and sustainable building practices, homes can be sought after for the individual and bespoke features and architectural qualities, opening up a whole new world for property owners looking for high returns on their rentals in all areas.
Properties on the outskirt of the city such as this 1 bedroom in Malvern can generate great revenue.
These changes in location and style appeal can be wise to consider when purchasing future short term rental investment properties or planning on the switch from long term rentals. Consider ease of accessibility to and around your property; appropriate furniture, layout and facilities add value and aid the all important reviews; and flaunt your best assets. Professional photographs can really highlight the features that set you apart from other rentals in the area, so don’t skimp in these matters. Remembering a professional concierge team and management service can be the difference to your properties’ success and returns, not to mention your freedom.
It’s the little things that count for positive short term stays. When you guarantee a professional standard and personalised service, the reviews speak for themselves generating high occupancy, great returns and repeat guests. For more freedom with your investment, short term rental and professional property management is a wise choice for the astute property owner. Check online to see how much your property could earn with short term rental here.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
