In-light of the current Coronavirus situation, here are some tips on converting your short-term AIRBNB rental to a long term rental.
With global travel coming to a near screeching halt, airlines and hotels aren’t the only one’s facing difficult times. This week Airbnb announced that any guests who made reservations on or before 14th March 2020 can cancel their bookings with no fee’s or penalties. This is a positive for guests but it means that Airbnb hosts are now facing long vacancies.
Many hosts are now looking at renting out their properties as long term rentals.
In the last week I’ve spoken to many hosts who are weighing up their options on what to do with their properties as enquiries continue to drop and cancelations continue to rise.
If you are considering renting your Airbnb through an agent, there are a few things you must consider.
Furnished or Unfurnished
The rental demand for long-term furnished properties around Melbourne is usually quite good – however, in light of the Coronavirus outbreak, there is less demand for furnished properties. Many Airbnb hosts have already listed their furnished properties online which is causing an oversupply of furnished properties currently available.
If you plan on leasing your property as a long term furnished property, you may need to significantly reduce your rent in order to attract the reduced number of potential tenants.
My recommendation is to remove the furniture and rent your property empty. This will attract a larger segment of the market and reduce the days your property sits vacant.
Rents
The rent you can achieve on your property will depend on where your property is located and how many similar properties are currently available in the area. Our first step with clients is to compare their properties with what has recently leased and what is currently on the market.
Lease Term
Most tenants are ideally looking for a 12 month or longer lease however, at the moment we are seeing many people enquire about short term leases (6 – 12 months). Being flexible with your lease term will allow you to attract more potential tenants and also give you the flexibility to go back to short term renting once the lease term ends.
If you’d like to discuss your options for your short term rental property, please don’t hesitate to contact me directly on 0401 062 523 or via email on marcel@besserco.com.au
