Sisters hitch long term investment goals to short-term rentals

Two Victorian sisters have carved out a property empire, turning a renovated property bought for $48,000 into a sprawling investment portfolio built on short-term rental income.

Holiday home with pool
Targeting holidaymakers has paid off for two Victorian sisters. (Image source: Jade Small & Tammy Garcarzyk)

Victorian sisters Jade Small and Tammy Garcarczyk have crafted a property investment story, that literally began by cutting a house in two and moving it to a better location.

With no need to cut any losses, the siblings now own 11 properties and manage 140-plus short-term rental properties.

Sisters Jade Small and Tammy Garcarczyk embarked on a property investment path 20 years ago, which led to them becoming short-term rental property managers in their own right.

Learning first-hand the ins and outs of how to identify a property that’s best for short-term rental return, how to ensure guest satisfaction and the intricacies of property management, created a life and business that’s recently ventured offshore.

Ms Garcarczyk’s background was already property management and interior design, while Ms Small’s was in project management and recruitment, enabling her to expertly handle logistics, and operations.

Confidence played a big part too when they first decided to secure a holiday home for themselves, that had to be transported to their ideal location, in two halves.

“For our first property, we decided to buy together because, as close sisters, we wanted to leverage our combined resources and felt more confident taking the plunge as a team,” Ms Garcarczyk said.

“I was living overseas and had saved up a deposit, while Jade had a steady income and was able to secure the loan.

“We found a small, affordable block of land in Loch Sport, 270 kilometres east of Melbourne, for $48,000, just a short walk from the beach.”

The sisters’ motivation was twofold, wanting a holiday home for themselves and seeing potential in the short-term rental market.

“To prepare financially we meticulously budgeted, set aside savings and ensured we had ample reserves for both the purchase and any necessary renovations,” Ms Garcarczyk said.

Jade and Tammy bought the house at no cost through a website and arranged for a specialised moving company to transport it the three hours to Loch Sport.

“The home was practically cut in half for transportation and put back together, then the renovation took approximately six months, during which we were involved in every step.”

“There were many weekends when we went down to the home to paint, sand floors, do gardening, and many more tasks; we felt like we were on The Block,” she said.

“Including the move, renovation and furnishing, our total investment came to around $100,000.

“At the time, this was a substantial commitment, driven by our goal to transform the house into a comfortable and inviting space for guests.”

The home was able to achieve rental returns and capital growth during our holding time.

The idea of renting the property out on Stayz (which is now HomeAway/VRBO) came from a desire to make the property work for the sister when they weren’t using it.

“We had previously rented a house on Stayz ourselves, so we were familiar with the website and its benefits and saw an opportunity in the short-term rental market to generate income and cover costs while also providing a welcoming space for other travellers,” Ms Garcarczyk said.

“It also offered the opportunity to use the property when it’s not booked,” she said.

Over the 12 years of ownership the sisters celebrated many holidays, created family and friend memories, and enjoyed their time at the property, inspiring others to invest in Loch Sport too.

“Managing the holiday home was very hands-on during this period, as we didn’t have the advantage of a channel manager and although it was challenging, the experience taught us invaluable lessons about property management, so, the hands-on approach was crucial in fully understanding how to maximise a property’s potential, ultimately contributing to its successful sale for $217,000,” Ms Garcarczyk said.

Portfolio takes off from initial launch pad

During that time, the sisters had invested in eight other properties, including one in Rye on the Mornington Peninsula, 100 kilometres south of Melbourne, chosen for the area’s strong demand from holidaymakers and the promise of higher short-term rental returns.

“Rye’s popularity as a holiday destination made short-term renting an ideal fit, allowing us to capitalise on peak seasons and special events for increased income,” Ms Garcarczyk explained.

Purchased Location Held/Sold
2003 Loch Sport Sold
2005 Hampton Held
2007 Pascoe Vale Held
2007 Glenroy Sold
2009 Collingwood Held
2011 Tullamarine Held
2012 Rye Held
2012 Niddrie Held (residence)
2013 Rye Held
2014 Docklands Held
2016 Seminyak Bali Held
2023 Elwood Held
2024 Canggu Bali Held

“Additionally, short-term rentals provided us with the flexibility to use the property ourselves when it wasn’t booked, offering both personal enjoyment and financial benefits, so, this approach also allowed us to adjust rental rates based on market conditions, further maximising profitability again.”

From purchasing 13 properties in the past 21 years, they still own 11, including their residences in Melbourne suburbs Niddrie and Elwood, plus short-term rentals in the Victorian capital’s suburbs of Hampton, Collingwood, Docklands, two in Rye, and long-term rentals in Pascoe Vale and Tullamarine.

The two properties sold from the collection were the original springboard property at Loch Sport and another in Glenroy, 15 kilometres north of Melbourne central business district (CBD).

“We have several long-term rental properties that we’re eager to convert to short-term stays for higher returns, however, we’re waiting for the perfect timing with our current tenants to ensure a smooth transition,” Ms Garcarczyk said.

“We most recently completed the construction of a stunning new villa in Canggu, Bali, which has already demonstrated exceptional performance over the past few months,” she said, making it their second property purchase in Bali.

Trial and error on property journey

In the early days, the sisters’ property investment strategy took full bloom when family and friends approached them to also manage their short-term investment properties.

“Our passion for what we do was undeniable - we absolutely loved our jobs, and our enthusiasm shone through, so, beaming with pride over our results, we found genuine joy in helping guests feel at home and owners make added revenue.

“We provided a full management service so the owners could relax and just get paid,” Ms Garcarzyk said.

The siblings have not always had a dream run, however, and through trial and error learned valuable lessons along the way.

“One of the most important was being selective with the properties we invest in.

“Early on, we realised that not every property is suited for short-term rentals, and understanding market demand, location, and guest preferences is essential for success,” Ms Garcarzyk said.

Technology has also played a key role in the management of their rentals, and they emphasise getting the right channel manager as crucial.

“Having a system that seamlessly connects calendars, syncs pricing, automates tasks, and allows owners and team members to easily view bookings is essential,” Ms Garcarzyk said.

“We trialled many different platforms before settling on vacation rental management platform Hospitable, which automates a lot of our business and allows us to run our operations on autopilot, plus they have a fantastic Australian support team and have contributed greatly to our success by streamlining operations and ensuring nothing falls through the cracks.”

Hidden costs

Ms Small and Ms Garcarzyk recommend new investors planning to rent their investment property short or long-term should focus on a specific suburb or area and become experts in it, to gain an advantage in spotting good opportunities and making informed decisions.

“Look for features like proximity to amenities, attractive locations, and properties that will appeal to your target market, such as families or holidayers,” Ms Garcarzyk said.

When it comes to choosing and buying a property, they suggest not just thinking about the purchase price, but factoring in maintenance, property management fees, insurance, furniture, utility bills, rates and potential renovation costs.

“Make sure you can cover all expenses even during off-peak seasons when the income is lesser than the peaks,” she said.

As their portfolio grew, Ms Small and Ms Garcarzyk also learned it’s natural to want to dive into a new business venture around the clock but it’s important to maintain a balanced approach.

“Striking a balance between work and personal life is crucial for sustained success and overall well-being,” Ms Garcarzyk said.

From the humble beginning of one holiday home, trucked overland for three hours in two pieces, is a far cry from the business and lifestyle their investments have forged over more than 20 years.

They now run a short-term rental property management enterprise called Ready Set Stay, with more than 140 properties on their books - including the nine they own.

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