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What to look for in an investment property?

By April 21, 2023 No Comments

A professional’s Top-5 List when investing in a property for the short-term rental industry. 

Over the past decade of working in the short-term rental accommodation industry, I have seen property owners convert their existing homes, holiday homes or rental properties into short-term rentals for one simple reason. Maximising their investment returns.

These days the secret is well and truly out and savvy investors seek out properties specifically for this reason. Busy booking calendars are key to making this strategy a wise choice. So, what are the top 5 things to consider when investing in a short-term rental property in Australia?

Allow Angela Carrick from Air Design Australia to break it down for you. 

#5. Regulations: Check the local regulations to ensure that short-term rentals are allowed in the area. Some cities have restrictions on the number of days a property can be rented. Some cities change their rules depending on the type of property such as apartment buildings vs stand-alone properties so make sure to research the rules and regulations before investing. There can be a lot of wiggle room found in the fine print of these regulations so talking to industry experts can be enlightening.

#4. Market Demand: Research the local market to determine the demand for short-term rentals in the area. Check occupancy rates, average rental rates, and the number of competing properties in the area. We (Air Design Australia) have great tools for this. Sometimes giving your property a unique look or niche appeal can be all you need to stand out in a flooded market.

#3. Property Condition: Look for a property that is in good condition and requires minimal repairs or renovations. Also, consider the size and layout of the property, as well as its overall appeal to potential holidaymakers. You want to ensure that your booking calendar is full as soon as possible and not waste time with contractors, tradespeople and overblown budgets. 

#2. Location (duh): The location of the property is crucial for short-term rental success. Look for areas that are popular with tourists or business travellers, such as near major attractions, transportation hubs, restaurants, cafes, or business districts. Many people travel to unassuming city suburbs to visit family for special occasions like new births, so rentals located by a hospital can often do very well. 

#1. Management: Consider how the property will be managed. Will you manage it yourself or hire a property management company? If you plan to manage it yourself, make sure you have the time, resources and local knowledge to handle the responsibilities. 

We have found that time and time again owners wished they had worked with an EXPERIENCED manager from the very start of their ‘short-term-rental’ journey to save time, money and heartache. At Air Design Australia we work with owners and curious investors nationwide and offer practical, proven and easy-to-follow advice from start to finish. 

Air Design Australia is always on the hunt for more amazing properties throughout Australia so if you’re an owner looking to unlock the potential of your investment property. Contact us today!

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