Many people are now listing their homes on Airbnb as an alternative to going through the usual process of using a property management company.
Many people are now listing their homes on Airbnb as an alternative to going through the usual process of using a property management company. It’s a low-risk (thanks to Airbnb’s insurance policies) and cost-effective method of doing this, but before you sign up it pays to be aware of the positives and the negatives.
Pro: The flexibility is great. You don’t have to accept guests unless you feel like it. If friends or family need a place to stay you have the autonomy to cease bookings for that week and reserve your property for them.
Con: The money is flexible too. Unlike renting your property to a long-term tenant where you know how much money you've got coming in each month, you can have a run of heaps of bookings and then a dry period. Airbnb is often seasonal, so around public holidays and Christmas, your listing may be more popular than at other times in the year.
Nice but messy tenants
Pro: Thanks to the way Airbnb was built, tenants get reviewed as much as hosts. This means you can vet them and control who you let stay in your home. As a result, you’ll often speak to lovely and interesting people, from both interstate and overseas.
Con: You’ll also meet their mess... Unless you can afford to hire a cleaner, you'll be cleaning up between bookings. Some people can be very tidy and others can leave behind a huge mess — and you can never predict who will be the clean ones and who won't be.
A good investment yet hard work
Pro: The short-term rental market has experienced massive growth and is likely to keep growing. According to studies like the 2018 Australia’s Short-Term Rental Report by MadeComfy, the earlier you join the market the quicker you will become established and climb the ranks of Airbnb’s good reviews.
Con: When you list your property on Airbnb, you essentially become a property manager. It’s like running your own business — you have to be available 24/7 to fix any potential problems that arise and be aware of all the guidelines and procedures. For some people, this can seem like too much work, but many say the pay-off is definitely worth it.
Pro: Airbnb effectively gives you a low-cost way of advertising and getting bookings, using a pre-built system for handling bookings and payments so the process is streamlined.
Con: But even though it’s an easier process than using a property management company, it means you are on the front line when it comes to complaints and unpleasant tenants. You can't please everyone, and that's okay.
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