Almost half of holiday rental owners who switched from permanent rental to holiday rental did so because of the higher yields available, new research shows.
Almost 25 per cent of holiday rental owners have leased their property as a permanent rental, Stayz Group Accommodation Index (SGAI) found.
“There are many advantages to listing properties as holiday rentals rather than permanent rentals, and, in these uncertain economic times, it’s great to see owners and managers leveraging their properties to yield positive returns and encourage local tourism,” said The Stayz Group business development director Justin Butterworth.
Some well located properties would only need tenants for 12 weeks of the year to break even in holiday season.
Holiday property owners and managers reported average occupancy rates at 28 per cent between July and September.
The respondents forecasted a 45 per cent occupancy rate for October to December, and 38 per cent for the July to September quarter next year.
“Even though some property managers may be wary that the increased cost of living and the affordability of overseas travel may lure away would-be guests, the strong Aussie economy also means that more people are in the financial position to take a domestic break, which is great news for property managers,” said Mr Butterworth.
Queensland and Western Australia saw the highest occupancy levels of 38% and 32% respectively for the July/September quarter.