Airbnb Owners – The Covid-19 Conundrum
Airbnb has a huge market in NZ and we take pride in our high standards of hospitality – in fact we are a country with one of the highest ratios of Superhosts in the world. The benefits of being an Airbnb host are myriad but as tourism and hospitality in New Zealand have come to a halt we wanted to take a look at the options for Airbnb owners during this time.
Recently we are seeing a change. As Kiwi’s rush home from overseas, people are displaced with the changing face of work, changes in personal circumstances (the big D word) and property owners who had planned to move back into their houses who are no longer able to give notice under the new legislation. All these factors have created another (less settled) market. It’s this market that might suit the Airbnb stock that is now readily available.
Could it work for me?
It may seem like a big commitment. You could initially offer the property short term for 3-6 months and then review after this time. Or you may prefer to secure a tenant for a year and have that stability – each property owner has their own goals and aspirations and we respect that.
The returns of an Airbnb property can potentially be high and ideal when the New Zealand markets are at their peak but for now we can help put your investment into the safe position of a short, mid or longer term rental. Even if it is just to help you bridge that gap until the market picks back up again a longer term tenancy might still suit you.
Is the quality of my home enough for the rental market?
In most cases, yes! Airbnb uses a simple review system to rate both the host and guest and neither do well unless certain standards are maintained. Many of those standards carry over to the rental market as people want quality properties that are well maintained.
Just a reminder to check you meet minimum standards for insulation and smoke alarms. We know all about this and are happy to lend a hand (we’ve got all the contractors too if you find you are not compliant).
Making the switch
The majority of the Auckland rental market will be fully established tenants who have a household of belongings who might not want a fully furnished property.
Why not advertise the property as furnished or unfurnished and see what response you get? A large net catches many fish and in this market you want to explore all avenues. A secure tenancy, with regular income, may make it worthwhile to move and store the chattels from your Airbnb. Plus, the added bonus is these items will be in great condition and ready for when the Airbnb market returns.
Bridging from short term stays to longer tenancies doesn’t need to be a dramatic upheaval. It’s simply a new chapter in your investment story.
Have a question? Want to know how much your Airbnb will rent for? Just ask! Call Tom on 027 700 1183 or email him on firstname.lastname@example.org