Savvy investors make the switch as Canberra's short-stay market booms

More investors are making the most of Canberra’s growing short-stay accommodation market, which can yield up to 30 per cent more revenue than a traditional long-term rental property.

Ioanna Hume, the head of The Property Collective’s recently launched short-stay arm, says because Canberra is a popular holiday destination for families and has a transient workforce, demand is on the rise for short-term rentals.

“Short-stay accommodation can be a very lucrative opportunity for investors compared to long-term listing,” she said.

“It depends very much on the property and the location, but certain properties can bring in up to 30 per cent more revenue each year.”

The other benefit for the owner is they can use or access the property whenever they want to.

“For mum and dad investors, the benefits are two-fold. Interstate owners or their family members can come to Canberra and stay at the property or carry out maintenance, and they’re not tied down to the access limitations that come with a long-term tenancy,” Ioanna explained.

Short-term accommodation is highly sought-after by government employees, researchers and medical staff staying in the capital for a few days or a few weeks but who don’t want to stay in a hotel.

“There is definitely a lot of interest in this market,” Ioanna explained.

“There has been even more demand since travel opened back up after COVID. We’re contacted a lot by people seeking short-term stays in areas like Woden, Belconnen and the Canberra CBD, which are close to everything and have good public transport on offer.

“They’re seeking apartments where they can stay and have their own space and a kitchen. Something more than a motel.

“We recently launched our specialised short-stay arm because we saw a need to get into this market and add an extra service for our clients.”

The Property Collective has an expert rental team headed up by Ioanna, who has worked in the short-stay industry for many years.

“We can sit down with property owners or potential investors and talk through the options that might work best for them,” she said.

“We look at each property and compare potential annual income with the aim of achieving the best results for our clients.

“Not all properties are suited to short-stay, but those in the inner north, inner south and city areas are where people generally want to book their stay.”

Families are looking to Canberra for short getaways to check out the attractions, visit relatives or stay for events. Professionals are always coming and going working on specific projects.

“They’re looking for apartments in a good location, and those with amenities like pools and gyms are in high demand,” Ioanna said.

She said existing property owners could consider making the switch once their current tenancy expires, and The Property Collective can immediately prepare their apartment for short-stay accommodation.

“We can definitely assess the property, visit the property and see what their end goal is before advising whether their property is more suited for long-stay or short-stay,” she explained.

“The aim of the game is to get the highest return from your rental property, and choosing the right type of lease can make a big difference.”

She urges anyone from interstate or Canberra looking to purchase an investment property to consider the benefits of short-stay accommodation.

“We can advise buyers where to look if they want to enter the short-stay market,” Ioanna said.

Most short-stay guests prefer apartments, and The Property Collective team members are local specialists in Canberra’s strata rules and managing properties in complexes.

They handle guest enquiries and bookings before, during and after their stay and have a group of cleaners to ensure the property remains in tip-top shape. They carry out spot inspections and take care of any maintenance issues at the property.

Ioanna says guests are provided with clean linen and towels, as well as toiletries, and items can be replenished upon request, similar to a serviced apartment.

“We offer an end-to-end service and can look after everything,” she said.

“We’re there to support the guests and to provide a five-star experience from the get-go.”

She said The Property Collective’s management fees were the lowest in Canberra for a full end-to-end service.

The properties are professionally marketed and listed on Airbnb, Booking.com and the Vrbo travel website.

If you own an investment property, are considering buying one or want to know more about the current rental market, contact the short-stay team at The Property Collective and find out how much you could be earning.

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