How short-term rental markets can continue thriving in Australia

How short-term rental markets can continue thriving in Australia

By Bianca Dabu

The property investment landscape in Australia has seen the rise of the short-term rental strategy in the past few years, especially as online hospitality service providers such as Airbnb continue to gain a large following from all over the world.

While there are new dynamics that could determine an investor's success in this venture, most of the more traditional fundamental investment principles still apply—from the importance of education to the benefit of being surrounded with a good team.

Quirin Schwaighofer and Sabrina Bethunin of MadeComfy, an end-to-end service provider empowering property investors to maximise their returns by leveraging online platforms in the short-term rental space, believe that the rise of short-term rental markets across the country can bring bigger opportunities for those in the business of creating wealth through property.

Sabrina said: "I will invite property investors to explore the additional opportunities they have in the market to optimise their property portfolios and see how also including short-term rental properties in their portfolio they can improve returns and improve the yield of their investment properties."

Their advice to investors looking into exploring this strategy is to look at it from every angle and be thorough in your research, the same way you would in more traditional property investment ventures.

"Our work is all about people. We work with homeowners, we work with neighbours, we work with strata. I mean, it's just... [being] building managers with guests. So we get a really good feel of everyone and we don't want the people that are frustrated or let down in these sites," Quirin explained.

"It's important to have a balance. We want to have a happy city. I came here a few years ago because I love Sydney. People are happy, open, and are really also positive to change. What's happening at the moment with a sharing economy, things are changing, and I'm really confident that Australia is dealing with that change really well."

For Smart Property Investment's Phil Tarrant, creating wealth through short-term rental markets still comes down to the numbers. An investor must treat each of his properties with the same amount of diligence, whether they are up for long-term or short-term lease.

Success in property investment, after all, will always be about balance, which could only be created by making smart decisions grounded on good education and mentorship.

"With every property investment purchase or property portfolio that you create, you need to understand that every property has a role within it, some of them are going to be more capital growth player versus a yield player," he explained.

But the important thing about short-term rentals... is that you really need to understand the dynamics of the particular market. Just because your investment property might be in an area where tourists don't frequent, it doesn't discount the need for people needing short-term accommodation."

Phil added: "On the flip side of that if you have properties in areas which have high tourist demand or high short-term transient demand, you need to be careful that there's not an oversupply of short-term rentals in those markets... These type of properties need to exist in every market. You just need to make sure that you're using the option or the solution that best affects your portfolio and that is one that gives consistency to your rentals."

His final advice for property investors looking into exploring the short-term rental strategy: "Explore the market, do your homework, do your research."

Tune in to Quirin Schwaighofer and Sabrina Bethunin's episode in The Smart Property Investment Show to know more about their insight into the key differences between short-term versus long-term rentals, as well as how property investors can ensure they’re getting the most out of their portfolio.

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Bianca Dabu

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How short-term rental markets can continue thriving in Australia
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