If you’re considering joining the army of worldwide Airbnb hosts, here’s what you need to know before getting started.
Being an Airbnb host was never part of Sue Devereaux’s plan.
She was having issues with bad renters at her Ararat property, having had to completely refurbish the house several times in just ten years.
Out of frustration, Sue decided to put the house up for sale.
Sue has a portfolio of five properties, some for long-term rentals and a couple for Airbnb short-term rentals in Ararat and Bendigo.
Whilst her Ararat property is doing well, her Bendigo listing only has about 70 per cent occupancy rate due to competition in the area.
For Sue, making extra money from Airbnb is more involved than simply listing it on the platform.
Oliver Lee runs Hostmybnb, a property management company dealing specifically with Airbnb hosts, who don’t want the hassle of regular communication with travellers and the logistics of maintaining their property.
Airbnb listings are rated based on things like your communication with guests, cleanliness, location, and value for money and the overall experience for travellers.
Lee says whilst you can’t change where you’re located, you can increase your bookings by the way you present your property.
Letting your place to strangers may sound scary but there are ways to manage the risks such as checking their profiles and reviews from previous hosts, as well asking specific questions.
As for Sue Devereaux, she uses a smart lock system, changing the pin code as often as she needs to.
One of the appeals for Airbnb guests is the lower cost accommodation.
A recent study by Deloitte Access Economics estimates that guests travelling to Sydney would have saved around $26 million in between 2015 to 2016 compared to staying in traditional accommodation.
They’ve also been letting out extra rooms in the terrace house they share without noticing major issues in the three years they’ve been hosts.
Sue has also been lucky with most of her guests who use her Ararat property as a stopover for long-distance travel.
Many guests expect nothing less than hotel-grade cleanliness.
Sue uses a professional cleaner from time to time but prefers to do the cleaning herself.
He says Airbnb hosts don’t need to worry about paying for GST as it doesn’t apply to income made from letting out your place.
What surprises many Airbnb hosts is the fact that they still need to pay capital gains tax even if they’re only letting out empty rooms in the family home.
