With the growth of peer-to-peer platforms like Airbnb, it’s no surprise that the demand for short-term rentals is growing across Australia. One of the key issues with short-term rentals, until recently, is the often unregulated and “frowned upon” nature of Airbnb. Recent developments in the real estate industry, however, demonstrate that short-term rentals are beginning to become more mainstream in Australia.
Take the recent partnership between MadeComfy and Raine & Horne and Belle Property. These partnerships are providing a legitimate avenue for landlords and tenants to access the benefits of short-term rentals. MadeComfy are short-term rental specialists who also have agreements with Airbnb, Booking.com and Stayz. It’s estimated that listing properties for short-term rentals can provide 40% higher than average returns.
The property management partnerships between MadeComfy and Raine & Horne and Belle Property means homeowners can explore short-term rental agreements, while continuing to have their property managed by a professional. These services are currently available in Raine & Horne’s Dee Why agency and Belle Property’s Mosman and Neutral Bay agencies.
The growth of short-term rentals on platforms such as Airbnb, coupled with MadeComfy’s partnerships with established real estate agencies demonstrates the potential for the short-term rental market to continue growing across Australia.
Adding to this potential, MadeComfy recently secured $6 million in funding in its latest capital raising round. This capital came from MadeComfy’s existing investors and global investment bank, Investec.
While the increased returns of the short-term rental market can be tempting for landlords, it’s important to ensure your property has all the features short-term renters are looking for in a short-term lease. For example, properties in popular tourist areas can be great to advertise as a holiday let, while a comfortable suburban home may be best left in the long-term rental market for six-month, twelve-month, and ongoing leases.
Before you make changes to the leases you offer for your property, talk to your property manager and a trusted financial advisor about the most suitable option for your portfolio.