4th June 2018
Airbnb Guests vs Long-Term Tenants
How Airbnb Revolutionises Renting Out Property
Landlords in Auckland have traditionally relied on long-term leases to rent out properties to tenants. Tenancies lasting at least six months have dominated the market, with property owners having long-invested in the services of real estate agents and platforms, like Trade Me, to source, manage and nurture these agreements.
For a landlord, protecting and making the most of an investment is the priority. Long-term tenancies have their hurdles and regularly cause problems, consume valuable time and require continuous maintenance and communication. With the rise of Airbnb and other short-term rental websites, opportunities have opened for property owners in New Zealand and, in particular, Auckland.
Services like Airbnb offer an alternative method of generating income from a property investment. These platforms empower people to set their own rules when it comes to their property. They reduce the risk of engaging in lengthy battles with problem tenants and provide unrivalled flexibility.
For those considering utilising Airbnb for their property, it’s important to weigh-up the benefits and consider whether this service is the right medium for them. As a unique software, it comes with its own challenges, but it also brings a variety of advantages that are extremely appealing to Airbnb’s growing user base.
Short-Term Rentals Provide Flexibility
Airbnb offers landlords the freedom to lease their property when it’s convenient. Without the ball-and-chain of a long-term tenancy, property owners can utilise their investment during suitable periods. For instance, if a person requires the use of their apartment for six-months out of the year, it can be difficult to find tenants. With Airbnb, this isn’t an issue. Users can simply list their property as unavailable during this period and rent it out when it’s suitable for them.
Airbnb is Easy to Use
The process of leasing a property can involve a lot of paperwork. Tenancy agreements, agency paperwork and further legal documents can be daunting for some property owners. Landlords often require the assistance of third-party property managers to assist them with listing and securing tenancies. With Airbnb, this process is made extremely simple. Its usability is a huge draw-card to property owners. Simply put, this platform is designed to be used by humans.
Airbnb also allows you to easily contact your guests through its website. Establishing a relationship and putting a face to the name is standard practice. This platform makes it very simple to communicate with the community, to work out any disputes and to do background checks on those requesting to stay at your property.
Avoid Bad Tenants with Guest Reviews
A huge issue plaguing New Zealand landlords is difficult tenants. Property damage and missed or late payments create problems. It’s always difficult to ascertain whether a tenant is a good fit. With Airbnb, you are provided with reviews from previous stays and ratings that inform you whether your next guest has behaved appropriately in the past, helping you to avoid those that may put your possessions at risk.
This brilliant feature is used by guests and hosts to help them to make educated decisions. Users can see comments left by previous hosts detailing their experiences with them. This offers the opportunity to filter certain guests and ensure respectful behaviour during the stay. Plus, without having to make a long-term commitment, you can avoid the nightmare of being stuck with bad guests for an extended period.
The Host Guarantee Program Protects Users
Airbnb’s proven commitment to providing a positive experience when using their service is made crystal clear with their Host Guarantee. The Host Guarantee provides protection for costs of up to 1.3 million New Zealand Dollars if unexpected damages occur. While it doesn’t cover everything, this service provides peace of mind for users renting out their property – something that isn’t always available during long-term leases.
It’s Free to List a Property on Airbnb
Unlike Trade Me and other popular real estate websites, Airbnb doesn’t charge for listing your property or room. You only ever pay booking fees. The cost of listing and marketing a long-term rental can be excessive. Airbnb takes this out of the equation, allowing landlords to save on unnecessary expenses.
Airbnb is Popular – and Growing
Airbnb is an extremely popular choice for travellers. Particularly in cities and attractive holiday destinations. With the cost of a hotel room in Auckland exceeding most budgets, Airbnb is fast becoming the go-to service for visitors to this city. The demand for high-end, affordable accommodation in the city centre is peaking, it has never been a better time for Auckland City property owners to explore the new options provided by Airbnb and other short-term rental websites.
Substantially Increase Profit
When you have an investment property, you want to make sure it’s making a profit. That’s the bottom-line. With long-term rentals, rent is set at a specific rate throughout the period of the tenancy. In contrast, Airbnb allows you to set your nightly rate and to change it at any time. Nightly rates are generally a lot higher than weekly or monthly charges. Taking into account peak-season prices, Airbnb generally allows you to make a higher income from your property – as long as you have consistent guests.
When thinking about listing a property on Airbnb, it’s essential to consider your area. The demand for rooms will dictate the success of your property on Airbnb. Having a high-quality apartment in Central Auckland is guaranteed to earn more revenue than a suburban or rural home.
Management of long-term rentals can be restrictive. Landlords are often left in the dark about their property, with pre-warned inspections only permitted at certain times. Damage and misbehaviour frequently go unnoticed for long periods and this often leads to bigger problems.
A short-term rental allows landlords to maintain and protect their investment on a regular basis. After every guest, the property can be cleaned and checked-out ensuring you and your guests stay happy with the Airbnb experience.
For those that find the regular turn-over of guests too time-consuming or too much hassle, Zodiak Property Management provides total Airbnb property management. Our services make it easy to experience the benefits of Airbnb. For more information on what Airbnb can offer you, please visit our Airbnb Services page or get in touch.