It is worth leasing out my property as an Airbnb in Sydney?
If you're a property owner in Sydney and you're considering listing your rental property on Airbnb, you may be wondering whether it's worth the effort. Here are some factors to consider when deciding whether to lease out your property as an Airbnb in Sydney:
Potential Earnings
One of the main benefits of leasing out your property as an Airbnb is the potential for higher earnings compared to traditional long-term rentals. By renting out your property on a short-term basis, you can charge a higher nightly rate and potentially earn more money overall. At Furnished Properties, our investors earn up to 50% more leasing out short term (as an Airbnb) compared to long term leasing. It is important to keep in mind that there may be additional costs associated with leasing your property as an Airbnb, such as cleaning and maintenance fees, taxes, and insurance.
Demand in Your Area
Another important factor to consider is the demand for short-term rentals in your area. Sydney is a popular tourist destination, and there is often high demand for short-term rentals in the city. Attractive locations for our guests are generally close to public transport, local amenities, hospitals, major attractions or conference centres, Airport and/or universities. It is important to research the specific area where your property is located to determine whether there is a high demand for short-term rentals in that area. At Furnished Properties, we manage properties all over Sydney including Sydney CBD, Inner City, Inner West, Lower North Shore and Eastern Suburbs. The demand for furnished properties extends beyond these neighbourhood and we experience a high demand for locations outside of the CBD. As an example, Homebush is very popular for our guests who are visiting nearby Sydney Olympic Park.
Competition
Another factor to consider is the level of competition in your area. Sydney is a competitive market for short-term rentals, and there may be many other properties listed on Airbnb in your area. This can make it more difficult to attract guests and may require you to price your property competitively.
Legal and Regulatory Considerations
Finally, it's important to consider the legal and regulatory considerations involved in leasing out your property as an Airbnb. In Sydney, hosts are required to register their property with the local council, obtain a planning permit, and comply with safety regulations. Apartments may also need to comply with Strata by-laws which determines if a short term lease is permitted in your building.
Additionally, hosts must pay taxes on the income they earn from Airbnb and may be required to register for a Goods and Services Tax (GST) if they earn over a certain threshold. Furnished Properties can help with registering your property for STRA (Short Term Registration) and advise on the insurances.
Management and Maintenance
Leasing out your property as an Airbnb requires more management and maintenance than traditional long-term rentals. You will need to handle guest communications, cleaning, and maintenance, which can be time-consuming and may require you to hire a property manager or cleaning service. It's important to consider whether you have the time and resources to manage your property as an Airbnb.
In conclusion, leasing out your property as an Airbnb in Sydney can be a lucrative opportunity if you have the time and resources to manage your property effectively. However, it's important to consider the potential earnings, demand in your area, competition, management and maintenance requirements, and legal and regulatory considerations before making a decision. With careful planning and management, leasing out your property as an Airbnb can be a great way to earn some extra income while providing a unique and personalised experience for guests visiting Sydney.
At Furnished Properties, we provide a full service property management service for your investment property to take the headache and stress of managing your own Airbnb. Depending on your investment goals, we can lease your property as a short term or long term lease to maximise yield and provide more flexibility. We have additional services including furnishing packages and styling to ensure you achieve your highest rental yield.
To find out if your property is worth listing as a short term rental, contact Furnished Properties for a free appraisal and consultation.