http://gizmodo.com/i-bought-an-apartment-just-to-rent-it-out-on-airbnb-1458666661
Would this work in Australia? Or are entry points, labour and rates too high?
Would this work in Australia? Or are entry points, labour and rates too high?
Airbnb related - Came across this and thought it's interesting
- Thread starter Lamingtons
- Start date
I'll let you know if it works.
I'm settling tomorrow on a place I'm putting on Airbnb. I'm only considering doing this because the new place is about 200 metres from where I live - and from where my other Airbnb place is. I'm aiming for longer term rentals with the new place to reduce the work - and to not upset the owner occupiers in the building.
Scott
I'm settling tomorrow on a place I'm putting on Airbnb. I'm only considering doing this because the new place is about 200 metres from where I live - and from where my other Airbnb place is. I'm aiming for longer term rentals with the new place to reduce the work - and to not upset the owner occupiers in the building.
Scott
Report back!This is the listing as it is now with the pics from the RE agent sales stuff:
https://www.airbnb.com.au/rooms/1802870
I've got someone moving in on the 26th for 6 weeks. Before then, it needs a paint, new flooring and furniture (much of which I have hanging around at home). I hope settlement happens tomorrow. I've got a couple of youngsters lined up for a painting weekend.
https://www.airbnb.com.au/rooms/1802870
I've got someone moving in on the 26th for 6 weeks. Before then, it needs a paint, new flooring and furniture (much of which I have hanging around at home). I hope settlement happens tomorrow. I've got a couple of youngsters lined up for a painting weekend.
scott....do you think its worth renting it out that way when i guess you'd get at least about $400 a week if u rented it out to a long term tenant. By the time u factor in the cleaning etc and time involved, i can't see the advantage.
cairns is a good idea though- might be able to get a pretty cheap place there that airbnb rental may make it more worthwhile
cairns is a good idea though- might be able to get a pretty cheap place there that airbnb rental may make it more worthwhile
I spoke to a guy a few months ago who owns a bunch of Sydney pads around Potts Point/Darlinghurst etc.
He switched his entire portfolio from residential tenants to airbnb, is booked almost 100% of the time and his portfolio instantly went from cashflow negative to significantly positive.
Others who are making a tidy profit (and are heavily booked) have places around the city.
Scott's got the right idea though. Buy in an excellent suburb for future CG, and have a crack at paying the mortgage with airbnb.
It's going to take about an hour to clean. My kids will be doing it for pocket money in a few years time. The person who lives in my garage owes me ten years of favours and she'll do it for me whenever I ask - free. And the cleaning only happens at the end of a stay, not during.
It takes an hour and a half to clean my other place, but it's twice the size. I like doing it, too, because it's such a nice space. I hide up there and put a couple of albums on the record player and marvel at my DIY skills.
As a long term rental, with a better kitchen (it's on my list) it might get $380-90pw. On Airbnb, it will get close to $500pw (more next Dec/Jan). And the Airbnb fee is only 3%. No idea what occupancy rates will be, though. It's an experiment.
In the last 18 months, I have had three overseas couples come and stay at my other place for a month while they look for cheaper long term digs. If I had the new place then, they would have moved in there in a flash.
A US friend tells me the IRS have been actively scanning AirBnB listings and are looking for people avoiding tax and/or running a unlicensed private hotel (you would think that there are laws around how many days per year a place can be rented out before it's considered a commerical operation, etc).
I don't know what the laws are, but something to check out.
I don't know what the laws are, but something to check out.
I declare all my income and claim expenses as per a normal rental property. No point trying to hide it. I think the waters get muddied when people rent out a room in their house (lots of that on Airbnb). In that case, there is an argument that the guests could be considered boarders.
In New York there has been an ongoing tussle - driven largely by the hotel lobby groups, I suspect. There are a lot of New Yorkers who rent and are putting their apartments on Airbnb - and moving out when they are occupied. These are the ones I think who are being pursued under the 'illegal hotels' law. I believe it's a pretty old law. I have no doubt the hotel associations here have lots of lobbyists trying to muscle councils to stop people renting out rooms in the their houses.
That's the thing with a lot of this new stuff - legislators are having to think about how to deal with a whole new area of commerce.
In New York there has been an ongoing tussle - driven largely by the hotel lobby groups, I suspect. There are a lot of New Yorkers who rent and are putting their apartments on Airbnb - and moving out when they are occupied. These are the ones I think who are being pursued under the 'illegal hotels' law. I believe it's a pretty old law. I have no doubt the hotel associations here have lots of lobbyists trying to muscle councils to stop people renting out rooms in the their houses.
That's the thing with a lot of this new stuff - legislators are having to think about how to deal with a whole new area of commerce.
I'm currently using Gumtree for furnished rental in Elizabeth Bay which is working a treat. The challenge with Airbnb is just being available I think, as I recently moved to Melbourne. Does the guy you mentioned manage them himself? It's a great strategy.
If I recall, he's paying someone a nominal amount to handle check ins, cleaning, changovers etc.
Not sure how a furnished rental on Gumtree would differ from a furnished rental on Airbnb? Both will involve some work. I'm not planning to rent out the new place by the day or anything like that. The aim is longer term bookings. If I can't fill it through Airbnb, I'll list it on Gumtree - but make people book through Airbnb because they handle the money.
Already covered in the thread.
Close to 100%. There have probably only been about 10 vacant days this year. But the loft is pretty attractive - and relatively cheap. I keep it cheap because I suspect if it was more expensive I would get people who whinge about there being no dishwasher or air con. Or they might not like the fact that a couple of evenings a week there are people downstairs chatting and making art. I've had Sydney people come and stay there because they have wanted to spend a long weekend in the space. I've had some 2-3 month bookings this year, which has been good. Interesting people, too.
Hmmm... this thread has me thinking. I'm about to go OS on a holiday for two weeks, and currently live in a really trendy pad close to Melbourne CBD. Maybe I should rent my place out for the 14 days I'll be away. I already have some nice photos. I also know someone who would probably be happy to check people in, out and even do a clean for some money of course.
What would be the best to do with my 'stuff'?
Obviously small valuables are easily locked away.
I'm sure people won't mind if I have my clothes, books, cutlery, glasses, food and toiletries in place? Not keen on the idea of people going through any of my stuff (i.e. underwear and so forth) but it becomes more hassle than it's worth if I'm to move all this stuff out.
In my study I have a large computer setup (big case/monitor), plus toolbox, etc etc. Leave all this in place?
What would be the best to do with my 'stuff'?
Obviously small valuables are easily locked away.
I'm sure people won't mind if I have my clothes, books, cutlery, glasses, food and toiletries in place? Not keen on the idea of people going through any of my stuff (i.e. underwear and so forth) but it becomes more hassle than it's worth if I'm to move all this stuff out.
In my study I have a large computer setup (big case/monitor), plus toolbox, etc etc. Leave all this in place?
Might not be worth the hassle for two weeks. My loft is a dedicated rental i.e. no personal stuff there. The new flat will be the same.
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