The 3 biggest benefits of Airbnb investment property
A 2018 GFK report found that 80 per cent of travellers are looking for more adventurous, authentic and local experiences – exactly what Airbnb provides. This trend explains why the platform has 160 million users and why guest bookings increased by 60 per cent during 2018.
With that in mind, is Airbnb the right option for your investment property? Let’s take a closer look at three reasons why it could be.
1. A higher rental return
People are generally willing to pay more per night for short term accommodation than long term lodgings. For this reason, the right property could boast a far higher rental return on Airbnb than it would from a long term rental agreement.
In fact, it’s not uncommon for Airbnb investors in Christchurch to enjoy gross rental yields north of 10 per cent.
With that said, it’s important that you select the right property if you’re considering an Airbnb investment – something affordable and close to town is usually best.
2. More flexibility
When you rent your property out for a long period you’ll usually lock your tenants in with a lease that’s one or two years long. While this provides certainty, which some investors prefer, it’s very inflexible.
Airbnb, on the other hand, allows you to decide when exactly your property will be available for rent. If you, your family or your friends want to stay all you need to do is block the nights out on the Airbnb application.
What’s more, if you decide Airbnb isn’t right for your property you can quickly remove your listing from the platform and lock in a long term rental agreement instead.
3. The opportunity for growth
The Ministry of Business, Innovation and employment expects that New Zealand will welcome 4.9 million overseas visitors in 2023. That’s up from just 3.7 million in 2017.
What this tells us is that the demand for short term accommodation is only going to increase in the near future. This is particularly evident here in Christchurch where building regulation prevents hotels and motels from building anything above three stories tall in the CBD. This fast increasing demand and limited competition could give Airbnb hosts the opportunity to increase their Airbnb income every year.
Keen to find out more about the possibilities of Airbnb property investment? Get in touch with the team at Williams Corporation.
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