The LJ Hooker Kaleen team: Melissa Hines, Tim Russell and Alyssa Bartlett manage long- and short-term lease arrangements for their clients. Photo: Michelle Kroll.
Canberra property investors in key suburbs could be shorting themselves almost a third of potential rental income by overlooking the right management arrangement.
Data from Australian Airbnb management company MadeComfy has indicated certain suburbs could attract up to 30 per cent more as a short-term arrangement than with traditional long-term lets.
Property management firm LJ Hooker Kaleen taps into MadeComfy’s administrative capabilities to help clients with long- and short-term rental management.
Executive property manager at the firm, Melissa Hines, says there’s high demand for short lets in certain key suburbs of the nation’s capital.
“Canberra has its visitors market – people looking for places to stay for a few days or maybe a week – but we also get a lot of people coming for corporate purposes, and they’re looking for those longer short-let arrangements,” she says.
“Hospital and government employees, for example, might need a place to stay for one to three months, and they generally want to stay close to work.”
LJ Hooker Kaleen leverages its arrangement with MadeComfy to partner with corporate companies, winning landlords with properties in some suburbs considerably higher yields than they would achieve in long-term arrangements.
Melissa says for this reason, landlords with properties in Belconnen, Woden and the city might want to consider their options.
“Woden is the second most booked corporate Airbnb location across all of Australia,” she says.
“In areas such as Woden, Braddon and Belconnen, you’re looking at a 30 per cent higher income, and that’s based on 85 per cent occupancy.
“Short-stay arrangements also offer owners flexibility if they travel a lot for work – they can earn an income on that property while away, but occupy their property whenever they need.”
One way LJ Hooker Kaleen improves the occupancy and income outlook for short-term rental clients is by leveraging MadeComfy’s dynamic rates system.
This is because a “set and forget” approach to the rental rates of short lets often strips away a landlord’s competitive advantage, deterring potential occupants during low seasons while failing to maximise potential income during peak seasons.
But better rental yields are far from a done deal across the national capital, Melissa cautions.
“Not every property is going to be suitable for an Airbnb. At LJ Hooker Kaleen, we use data to project what you’re likely to get based on a long-term rental compared to a short-term, break down the costs and demonstrate what’s financially optimal for your investment in the long run,” she says.
“A four-bedroom home in McKellar, for instance, is more likely to earn you more on a long-term lease than if you put it on Airbnb.”
With LJ Hooker Kaleen the endorsed preferred partner for MadeComfy, Melissa Hines knows short-term rentals like the back of her hand. To find out how to make the most of your investment, contact Melissa on 0406 387 154 or visit LJ Hooker Kaleen.
Loading ...
