From Mother’s Day to property prices – which we have discussed extensively in this post on our website. At BNB Butler, we always look for good opportunities. Even though bookings are flatter than usual because of financial pressures, Airbnb’s, short-term rentals, staycations, and events are still popular.
The premise and appeal. The flexibility. And additional income from owning a property listed for short-term rental is still something many people want to know more about. That’s why we have decided to put together a three-part series that documents the steps involved in finding the perfect property, listing it, and how to add a property to your existing portfolio.
We start with this – the Art of Finding the Ideal Airbnb Property – an insight into the key steps and questions you should ask yourself when looking at a property investment opportunity specifically for the listing on the short-term rental market.
Step 1: What is the purpose of the property?
When buying a property, is the purpose of the investment purely an investment that needs to generate a healthy return, or do you also want flexibility and to be able to use this property personally? Identifying the purpose of the property frames the investment and how you approach it.
Step 2: What do you want from the property?
Amenities to size, location, and unique property attributes will make a difference for you or the customers who rent the space. The second step is to profile your personal uses of the property.
Do you like surfing and spending time at the beach? Do you want to have access to a golf course? Or spend time watching the footy at the MCG?
From events to activities in the area based on summer or winter. The aesthetic of what you’re looking for and how people want to move around (whether by car or mass transit). These are important questions worth discussing when trying to find the ideal property because knowing what you want from the property can more easily determine if the opportunity suits your situation.
Step 3: What would other people have to do in the area?
Now that your personal preferences have been ticked off, it’s critical to consider the business aspect of the property. After all, when you’re not there, it will be rented out to guests, and we want to ensure they have something to do and a reason for them to look at your property. There are two things to consider in this step.
First, consider the tourist attractions, major events, festivals, and reasons to retreat and relax? Are there things in the same suburb or area that make the property an excellent choice for travellers looking to come to that part of the world?
This might be all of Melbourne’s theatres, sporting events, or cultural festivals in the city. On the Peninsula, this might be hot springs, great beaches, and beautiful walks. Both are appealing for different reasons.
The second thing to consider is the unique attributes of a given property. Through our own data at BNB Butler, we have seen that a property’s uniqueness and bespoke styling significantly impact the asking price per night and the popularity among guests looking to book. Unique properties offer one-of-a-kind experiences, and this element is what many guests are looking for from their stays.
Step 4: Find a suitable suburb.
Now that you’ve asked the important questions, it’s time to start looking. Because you have asked the important questions and understand the property’s purpose, the features you’re looking for, and what other people would want to do too. Narrowing down your list of suburbs should be a little bit easier but feel free to reach out for more help; we’d be happy to lend a hand.
Step 5: Assess your financial situation.
This step is all about your own due diligence, assessing your budget, and how realistically you can pursue a given opportunity. People’s individual finances are personal, so knowing how much you can borrow and handle in repayments as well as your risk appetite, should not be skipped or considered lightly. Although the returns for a given suburb or specific property can be highly valued and the ROI can be very appealing. It is still a risk to take on a new property and be liable for all the incidentals that come with it.
Step 6: Purchasing the property.
Congratulations! you’ve assessed your borrowing situation, worked everything out, and decided to move ahead. Step six revolves entirely around the administration and management of getting the deal across the line.
Step 7: Managing the property.
Deciding if you want to manage the property yourself is the final step in finding an ideal short-term rental property. Take care of listings, bookings, cleaning, maintenance, and customer issues independently, or you will hire a management company to do all this for you.
This decision does have an impact on the money the property returns. But considering how much time and effort it can take to manage a rental property, hiring someone to do this for you may be the right decision.
What isn’t possible when you manage a property on your own is to access the data and tools that professional property managers use. These are tools that, among many things, can help dynamically manage a property’s price and ensure the maximum return is generated for a given location.
Not all companies offer this level of service – BNB Butler does – and in the past, we have seen owners come on board largely because they see a higher return from their investment. This, combined with our high quality of service, we’re pretty proud of our work and how we serve each client.
In the next part of this series, we’ll talk about setting up a new property you have just bought, the following steps and explain how design and designers can make a big difference.
