More and more landlords are considering Airbnb as an investment opportunity. This is a flexible way to earn additional income for most people. If you are interested in the legal framework that governs this type of temporary accommodation, please click here to watch a video regarding the legal framework of short term letting in NSW featuring our legal partners Cordato Laywers.
Article written by: Michelle Hele
WE’VE all heard that renting your property on Airbnb could earn you some
extra cash, now the experts have crunched the numbers to tell you just how much.
Analysis by finder.com.au, looked at returns near airports and capital cities as those were the areas most likely to be rented out by tourists through Airbnb.
Two-bedroom units in all these locations averaged $583,592 to buy. The average Airbnb rent charged per two-bedroom unit per week was $1357 — that’s a yield of 12.74 per cent.
Far higher than what many normal investment properties rented out full-time achieved, which was about 3.6 per cent.
Surfers Paradise was the top place for solid yields if rented out via Airbnb with a 21.48 per cent return.
Popular areas for Airbnb accommodation, such as Bondi, did not offer such a good return because to buy a property there was so much more expensive the return was significantly diminished.
Bessie Hassan, Money Expert at finder.com.au, said earning an average of 12.74 per cent on any investment was significant — although there were risks.
Slow or wet holiday seasons could mean no income at all.
“Generating high yields from Airbnb requires the property to be turning over guests one after the other, and this requires more property management than traditional permanent leasing,’’ she said.
And the properties need to be furnished and have appliances, so there were costs to clean and maintain, that you wouldn’t get with a permanent rental.
For an apartment near the Brisbane airport the average rental return was $1045 a week. with a 13.11 per cent return.
Near the Brisbane CBD the average rental return was $971 a week with a yield of 11.13 per cent.
If you are ready to increase your rental yields and you are a landlord wanting to explore Airbnb as an alternative rental strategy, contact our office on: 9181 5943 and recieve a Host Proposal.