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Short Stay Disruption: Higher Investment Yields, Cashflow
3 min read

Short Stay Disruption: Higher Investment Yields, Cashflow

Discover how forward-thinking investors are achieving higher yields through short-term lets and professional management with MadeComfy co-founder Quirin Schwaighofer.

Investors seeking higher capital city yields are opting for disruptive technologies offered by short-term lets, but finding management logistics are best outsourced to the professionals. Turning the traditional leasing model on its head, these forward-thinking wealth builders are receiving better cashflow, paying down debt quickly and more effectively growing their portfolios in a post APRA environment. In what’s very much a hands-off proposition, they’re handing over the reins - and all responsibility - for bookings, housekeeping, maintenance and guest management, then walking out with an average of 40% higher returns. With well-regulated risk mitigation strategies, Sydney, Brisbane and Melbourne-based teams featuring thorough awareness of local short-stay markets, professional short-term rental management has become a fantastic investment solution for property owners.

Knowing whether short stay lets are right for you

Investors suited to short stay lets generally have more than one property and want to build their portfolios within a shorter amount of time. Educated and at the forefront of new opportunities, these early movers understand the need to get on board new markets on the rise. Open to collaboration, they’re not afraid to outsource professional management to aid with efficiency and leverage off others’ proven abilities. They can see the great opportunity available to generate higher returns without having to put in any extra work from their end. As such, professional short-let management solutions offer the full-service investors need to deliver high-level accommodation to guests within Australia’s capital cities.

Weighing up the risks: what you must be aware of to move forward

Horror stories of short stay lets destroyed by wild parties make headline news, but over the past two and a half years - and with over 4000 guests through our properties each month - we’ve only had two cases of property damage and two parties. Startling statistics they’re not, nor were the minor incidents that led to claims including one damaged kitchen bench top. Despite the urban myths, short stay lets carry no more risk than long-term tenancies. When you consider we’re in the properties at least once or twice a week, we’re more likely to know if something is wrong well before your traditional property management team. Insurance providers have also risen to meet market demand and have fantastic insurance policies available for short-stay lets in addition to those provided by most short-term rental booking platforms.

Managing cashflows without set weekly rental income

Another risk from short-stay lets is the fluctuating income but this is where knowing the market helps to regulate cashflow and guard against shortfalls. The main advantage of using our platform is that we’re able to price per day, month and season in order to keep high occupancy levels. We work closely with owners at onboarding stage to ensure properties that come under our management are a great fit for our brand so the experience works out well for all involved. We generate 12 month forecasts in advance, comparing traditional rental yields and the Airbnb average and in most cases, our properties receive 40% higher returns.

Outsourced short stay management a win for investors

On the surface, the great returns generated by short stay lets may make them seem like an achievable DIY proposition, but the reality is far different. You need to know where and what to buy, how to style like a professional to achieve high booking platform ratings and what the market is looking for in terms of inclusions. You need to know the peaks and troughs of your area, how to price through seasonal variations and you’ve got to be a marketing whiz - none of which comes naturally to most people. The great news is that for just a small outlay, MadeComfy offers all that and more with a platform that’s been used by over 4000 people a month since its inception. It’s time to look beyond what’s been traditionally done and prepare for market disruption, higher returns and a better path ahead to build your portfolio.

Learn more about how award-winning short-term rental management specialist MadeComfy can help you generate higher investment yields, minimise risk and maximise occupancy via their website.

 

 

 

 

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