Should I Airbnb My Property?

Airbnb is now an option for a lot of homeowners and property owners looking to potentially see some extra income coming in the door – especially these days, but there are a number of things to consider before embarking on the process.

How serious are you?  Do you want to make a few extra dollars every now and then or run your Airbnb as a full-time business? Does your space have practical amenities such as WIFI and parking?  Potential guests will expect the basics at least and this will determine the price you set your property at.  The less you have, the lower the price should theoretically be.  

Do your research and check out the local opposition. This will give you a gauge on where your property ranks in the area and importantly, will help you decide on a competitive rate. Run your financials.  While short term rentals generate more per night than long term, they tend to have higher overheads.  Guests behave differently while on vacation and may have high expectations.  Think 24/7 air conditioning, long, hot showers, TV stations, high-speed internet and so on.  And don’t forget your tax obligations.

Things will go wrong – are you close at hand and willing to deal with emergency maintenance issues?  Or do you have someone close by who can help out?

Is your property in a desirable, picturesque location?  Guests looking for an escape from the everyday humdum will be enticed by relaxing sea views or a calming rural outlook offering spectacular sunsets. Such settings are a great drawcard for Airbnb properties and can command a premium.

Be prepared to put in the work. Cleaning, laundry, monitoring web bookings, managing bookings, dealing with queries and complaints etc. In short – it won’t fall into your lap. Maintaining facilities, appliances and décor is worth gold as your property and its chattels will look sharp, clean and modern which is a sure drawcard for top reviews and repeat custom.

Research local rates and council consents. Councils may impose additional requirements for visitor accommodation for which you may need to register. There could also be additional rate charges or resource consent requirements.

Check your insurance.  Standard house and/or contents insurance will probably not cover Airbnb rentals.  Talk with your insurer so you have appropriate and sufficient insurance. Due diligence is key. Dig into all the finer details and speak to anyone who has first hand experience to help you in your decision process.

Check out these websites for more information.

Airbnb NZ

WestPac 

Vero Insurance