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Holiday home rentals are not a new concept however the amount of people investing in property for short-term holiday rental is becoming more popular as demands on long-term landlords increase.
The yields generated from these investments can be inconsistent but the flexibility the system offers can be favoured by those wanting to enjoy holiday homes themselves. Meanwhile many of the costs could be covered by renting the property out for short stays.
With several options for listing your property such as Air B&B, Bookabach and Bachcare, there are several ways to market your property to potential holiday home guests.
Air B&B recently shared that new Kiwi hosts made $42 million in the last two years, an average of $8,000 each. That would put the number of new hosts around 5,200, although Australia-based New Zealand country manager Susan Wheeldon says the company does not disclose exact numbers in each country, nor details of whether that tally had risen or fallen.
However, as with everything perceived to be ‘easy money, there is always a catch.
Short-term rental of your property can generate a lot of work. From interfacing with guests to laundry, maintenance and managing payments, it is easy to see that there is quite a bit of time involved in this process. Fortunately, the popularity of this growing business has seen experts such as Haley Saunders, founder and manager of Beyonder, a holiday home management business based in the Bay of Plenty.
Beyonder works for guests and property owners to deliver memorable experiences within people’s holiday rentals. Working on an ethos of ‘slow living’ Beyonder goes above and beyond in providing her clients with five-star service through partnerships with luxury NZ brands such as Websters Tea and eco-store. We chatted with Haley to understand what it takes to run a successful holiday rental.
‘You need to focus on your why and find a unique point of difference if you decide to make your property a holiday home. Guests look for handy proximity to the beach, playgrounds, great shopping, cafes, event centres and bike tracks or golf courses - if it’s a 20 minute walk, then that's a great location! You also need to price your home for what it is worth and what the guest is willing to pay - don’t overprice your home, do your research. You also need to make your home is special, inviting and a home away from home for the guests. Thoughtful touches and great aesthetics go a long way too.’
One of the main things to be mindful of when you are styling a home for this purpose is to understand your target market. A good example of this is ensuring your home is family-friendly if this is whom you want to target to stay. This may mean having a bath for kids or no precious or fragile items within reach. Styling does make a difference as does great photography.
‘Holidaymakers are less worried about big bedrooms and more interested in the types of living spaces indoors and outdoors as well as fun activities such as board games or kayaks and beanbags and hammocks outside etc. While many people are looking for a ‘getaway’ experience, the corporate and tradie market for people staying temporarily for work is also popular. Their focus is more on minimising sharing spaces and having sufficient bathrooms etc. These tend to be long terms stays on weekdays, but families still make up the vast majority of our enquiries.’
Many homeowners are concerned about protecting their assets and having an experienced property manager and listing on AirB&B provides some peace of mind in this space with AirBnB Host Cover. .
‘About 80% of our bookings are through Airbnb and they provide Air Host Cover providing up to $2,000,000 in damage compensation and extra cleaning costs if needed.’
It is important that homeowners check with their insurance company to make sure they’re covered for holiday rentals. There is an option to divulge this and while premiums increase slightly, it is worthwhile for the peace of mind.
Managing cleaning and linen can be a full-time job in the busy months and cleaning costs are passed on to guests so considering the timesaving and stress minimisation this is a great solution to what can be a very tricky problem. Also having a friendly face to welcome you and answer questions or deal with problems is always a great reminder for guests that the house is well looked after and cared for.
If you’re looking for a new build as an investment our House & Land packages provide a great low-stress, low maintenance option for an investment property in areas that are desirable for holiday homes. Another option is to get more from your land and build an ancillary dwelling for guest accommodation. Due diligence is required but it can be very lucrative with the right management and marketing and it’s worth talking with an expert to make sure you have considered all of the factors involved to make your investment profitable!
Haley Saunders, founder and manager of Beyonder