Results 1 to 19 of 19

  1. Post
    #1

    Airbnb vs Rental

    Can we talk on the pro's and con's in terms of Airbnb vs Rental investment properties.

  2. Post
    #2
    There is a tax issue with Airbnb that if you go over $60k you are required to register and charge gst as it doesn't meet the residential exemption. That also means when you sell the property you have to return gst on the sale price unless you sell to another gst registered personne who will use it for commercial use or airbnbing.

  3. Post
    #3
    Are their any exemptions to this? I saw their were exemptions in chch for Airbnbs operating within the four avenues. Unsure of what they equate to. There are 10s of thousands of Airbnbs in NZ. Surely it works

  4. Post
    #4
    Con: Councils will ream you with extra rates if they find out. Where as that doesn't apply to rentals.

  5. Post
    #5
    Parents have done air bnb and rental for the same property - Mount Maunganui address so fairly desirable.

    Airbnb
    Pros: Significantly greater income. - however it is unreliable and drops off especially in winter. They suggest they make 4x what they would renting over the year. They can also stay in the property / let family use the house.

    Cons:
    -They did the cleaning themselves and felt they were tied down / found it hard to go away. It was like a job
    -Have to furnish the place / bedding / towels.
    -Lots of micromanagement of bookings etc.

    Rental:
    Pros- Steady / reliable income. No cleaning / washing etc. Place is unfurnished.
    Cons - less income.

    Parents will go back to rental when winter starts.

  6. Post
    #6
    Equity wrote:
    Parents have done air bnb and rental for the same property - Mount Maunganui address so fairly desirable.

    Airbnb
    Pros: Significantly greater income. - however it is unreliable and drops off especially in winter. They suggest they make 4x what they would renting over the year. They can also stay in the property / let family use the house.

    Cons:
    -They did the cleaning themselves and felt they were tied down / found it hard to go away. It was like a job
    -Have to furnish the place / bedding / towels.
    -Lots of micromanagement of bookings etc.

    Rental:
    Pros- Steady / reliable income. No cleaning / washing etc. Place is unfurnished.
    Cons - less income.

    Parents will go back to rental when winter starts.
    second this.
    Only certain properties will be suitable for air bnb though

    Potential for much greater income if an air bnb if you can get the management of it down. Worst case it can be a pain in the ass.

  7. Post
    #7
    Pretty easy to get short term rentals here too. So a mix of both can work.

    But yeah....def depends on your property / location.

  8. Post
    #8
    Equity pretty much hits it, but to add to rental cons:
    - If you have a shit tenant, much harder to do anything about it
    - If it's a "rental" you have a lot higher compliance costs in regards to insulation etc

    If you're prepared to put in the work then AirBNB is a lot more lucrative.

  9. Post
    #9
    I'm surprised there isn't a huge surge of airbnb management companies popping up all over the show doing all the work for you for a cut.

    (Maybe there is and I just don't run in those circles, or Airbnb make it hard/impossible to do).

  10. Post
    #10
    I've often thought of that as a good sideline business. Where I am there's heaps of nice lifestyle properties that are empty 10 months a year.

  11. Post
    #11
    Yeah thats a good idea! Guess youd need some third party app to manage them all centrally?

  12. Post
    #12
    If such a thing exists. More likely you'd have multiple accounts and manage them manually.

  13. Post
    #13
    Your insurance will require you to get a commercial policy for airbnb. If you don't, and end up needing to claim on anything, and they find out you've been using it for airbnb, they'll decline the claim.

  14. Post
    #14
    Cool. I've taken a look around and it looks like their are two approaches people use to make the most out of their AirBnB.

    The first is a highly nightly rate with a more luxurious experience.

    The second, which I think makes more sense, is a well put together home that is perceived to be better value than other similarly priced ones. It may even be underpriced BUT it's occupancy rate and reviews are all 5/5 and permanently booked in advance for months.

    Ideally I'd like to be in a position to remotely manage it which looks to be possible with smart locks now.

    I guess you would need a cleaner that would be on hand when needed in between guests however.

  15. Post
    #15
    As a airbnb guest my worst experiences have been when the host is doing it remotely.

  16. Post
    #16
    Smart lock would be fine though (ie pin pad).
    Cleaned after each use. Not sure how that would impact your experience

  17. Post
    #17
    Generally a cleaner is just there to clean. You need to do maintenance, and there is a level of customer interraction needed to get a good rating.

    It may depend on location and type of property though.

  18. Post
    #18
    bradc wrote:
    Generally a cleaner is just there to clean. You need to do maintenance, and there is a level of customer interraction needed to get a good rating.

    It may depend on location and type of property though.
    Dunno about that customer interaction part... I've had my place on Airbnb a few times and shirt if telling them how to access the building I've never spoken to anyone. Likewise when using the service, just tell me how to access and don't talk to me again.

  19. Post
    #19
    We've a property on Airbnb and have a house keeper to do the cleaning after every stay. However, I still need to do all the laundry. We find it quite manageable with just one. Definitely earns much more than if we rent it out. The occupancy rate is pretty good through out the year and we often get long stay e.g a week plus, even up to six weeks. Those are good.