Urban believes that properties listed on short-term rental platforms like Airbnb could outperform the long-term rental rate.
He shares that over and above earning money from the rent itself, hosts benefit from the value of their property increasing since it can be sold with existing bookings as a going concern which is attractive for investor buyers. “Additionally, with the right management company, the property will always be kept in showhouse-ready condition, which is helpful should hosts decide to sell.”
“Unlike long-term leases, where the property typically degrades over the course of the rental period, short-term rentals mean that homeowners won’t have to spend time and money bringing the property back into a rentable condition once guests leave,” adds Urban. “Hosts also get to use the property whenever they like which is not possible with longer lets.”
He advises hosts to list their properties on as many platforms as possible. “This way, they can maximise the pool of potential guests.” Urban also shares some suggestions below on how they can attract bookings:
When it comes to operating a competitive short-term rental, he points out that those who are new to the game often underestimate what it takes. “There are a number of aspects to running an Airbnb that require hosts to be available 24 hours a day, seven days a week, and on any day of the year. Guests locking themselves out at 2am, a burst geyser on a Sunday or a guest checking in after midnight are all commonplace. Moreover, skills like accurate property pricing, revenue management, optimising listings on non-Airbnb platforms as well as securing payment from these platforms are all essential for being a successful host, but not everyone is equipped with these and might not have the time to learn them.”
For those who are only hosting for a few weeks a year, Urban says doing it on their own is manageable. “However, most hosts are better off letting a reputable management company run their short-term rentals for them. If they are good, they will make up for their commission through higher earnings, time saved and a well-maintained property.”
“Utilising a management company can also help with keeping properties and their contents safe,” he notes. “There are three levels of security that these companies can offer – vetting guests when they book; managing them while they are on the property; and conducting exit inspections to detect damages and, if needed, claim from guests.”
When it comes to picking the right management company, Urban advises shortlisting and meeting with at least two or three companies before appointing someone. “Ask them the hard questions to get a sense of how comprehensive their services are and what is excluded from their commission. Many rental management companies lure property owners in with a low commission but then either deliver a sub-par service or charge extra for everything else. Ask to speak to some of their existing clients too and look up reviews online.”
He concludes by saying, “Barring any unforeseen circumstances, this season is shaping up to be the best in seven years. Rates and occupancies are eclipsing pre-Covid levels, with forward bookings on the rise. October/November is the ideal time for hosts to start listing their properties so they can take full advantage of the season, especially with short-term rentals guaranteed to outperform the long-term rental rate over the next six months.”
