In that time, the website has connected private accommodation providers worldwide to 60 million paying guests and that translates to a lot of cash for clued up hosts.
It’s not surprising that increasing numbers of Australian landlords are also dabbling in the Airbnb market. But how lucrative is it really and is it a strategy you should consider for your property portfolio?
In 2015 Airbnb reported the average Australian host earned around $7,100 per year and rented their listing for 51 nights a year.
But the hosts that reap the biggest earnings from Airbnb are those with multiple property listings.
Achieving the coveted superhost status also adds a competitive advantage. Superhosts must meet certain service and quality standards set by Airbnb, including achieving 5-star reviews from at least 80 per cent of guests.
Gold Coast superhost George Friend says switching to self-managing his Q1 apartment through Airbnb three years ago dramatically improved returns – but he’s worked hard for it.
“I live only two blocks away and it’s a lifestyle choice for me to manage, operate and clean this one property,” George said. “Not everyone is in that position.”
There are other benefits to Airbnb for those who are prepared to be hands on with their property – and importantly are ready to treat it like a business, which includes paying tax and getting the right insurance.
“My property is in virtually the same condition as when I started,” George said. “My guests respect it and look after the premises as their own.”
George has also found Airbnb gives him a level of hands-on control during the notorious coastal low season.
“I intensely manage the daily rate because I can and it’s easy,” he said.
Airbnb hosts live and die by guest reviews, so check out these #5 tips if you’re considering Airbnb as part of your property investment strategy.
- Set mobile alerts so you can respond quickly to guest enquiries
- Spend a night in your own property to ensure it is fit for guests
- Invest in great photos to make your property stand out online
- Attend the annual Airbnb conference to get insider knowledge
- Adapt your pricing to meet demand.
Lastly, you might be renting through the new share economy but age old property principles still apply – location is key. Holiday makers will always prefer waterfront views over suburban back blocks.
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