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  • Profile photo of raviravi
    Participant
    @ravi
    Post count: 7

    Hi,
    Just hoping to get some ideas with regards to getting an apartment in the Melb CBD and renting it out as an ABnB. We live some distance out of the city and thus want to have something that is basically self managing in terms i.e. hiring a cleaning company who ensures the place is clean and stocked up as required.

    Would this be a worthwhile venture? I would like to get enough income from the Abnb to cover most of the cost of the investment.

    Are there businesses in Melbourne who take care of aBnB? I am guessing there must be a market for this?

    Look forward to some discussion on this.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Post count: 4,954

    AirBnB can work out well.

    Only problem is that banks won’t take into account the income generated from an Air BnB property unless you can show a year or two of tax returns. With a normal rental – they only need to see the most recent rental statement or a rental appraisal from a local property manager.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: info@passgo.com.au

    Profile photo of artfuldodgerartfuldodger
    Participant
    @rogernowell
    Post count: 0

    An important question to consider is the lack of certainty versus having a lease agreement. Would the AirBnB rate compensate for the risk? I would suspect probably not after you factor in all the costs. Cheers

    Profile photo of TimTim
    Participant
    @madecomfy
    Post count: 0

    Hi Ravi,

    Renting an apartment via Airbnb and other short term booking websites is definitely a worthwhile venture.

    Unfortunately we only manage short term rentals in Sydney at the moment, however, for the properties we have managed on behalf of property investors, we’ve managed to secure at least a 40% higher rental income from short term guests compared to long term tenants.

    A key consideration in renting an apartment on Airbnb is to ensure you have adequate provisions to manage the guests. As hospitality is fundamental when hosting guests through it, which is where a property manager like us (MadeComfy) can assist, as we specialise in Airbnb property management.

    Happy to assist anyone looking at renting their apartment on Airbnb as an option in Sydney and discuss the returns/yields we estimate to deliver.

    Regards,
    Tim

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