Is a Short-Term Property Rental Right for You?

Tiri Raumati-Greenhalgh • September 12, 2024

Is a Short-Term Property Rental Right for You? 

In today's dynamic world, the sharing economy has boomed, and short-term property rentals have become a popular way for property owners to generate income. But is entering this exciting yet demanding market the right decision for you? Whether you're considering listing your beach house for holiday-goers or your city apartment for business travellers, this guide will help you navigate the benefits, challenges, and profitability of short-term rentals to help you decide if it’s right for you. Plus, we’ll explore how working with property management professionals can help ease this process.


Unveiling the Benefits of Short-Term Property Rentals

Investing in short-term property rentals offers a unique opportunity to capitalise on the growing demand for flexible accommodation. Here’s why many property owners are diving into the short-term rental market:


Additional Income

One of the most appealing aspects of short-term rentals is the potential for higher income compared to long-term leasing. Seasonal demand, special events, and peak travel times can significantly increase earnings, as rental demand typically spikes during these periods.

man holding mobile phone with screenshot of online platform for short-term rental accommodation worldwide

Flexibility

As a property owner, you can freely block out dates for personal use. This means you can enjoy your property whenever you want without being tied to a long-term tenant.


Maintenance and Upkeep

Regular cleaning and maintenance between guests can help keep your property in better condition, potentially reducing long-term repair costs.


Tax Benefits

Short-term rentals may offer tax advantages, such as deductions for maintenance, utilities, and other rental-related expenses.


Challenges to Consider

While short-term rentals offer many benefits, there are several challenges to consider that shouldn’t be overlooked, including:


High Turnover

Managing a short-term rental means dealing with frequent guest turnover, which can be time-consuming and require constant attention.


Variable Income

Unlike long-term rentals, income from short-term rentals can be unpredictable and fluctuate with market demand, seasons, and economic conditions.


Regulations and Taxes

Compliance with local regulations and tax requirements can be complex and vary significantly by location.


Profitability Potential

Now that you know the benefits and challenges of short-term rentals, it’s time to weigh the profitability potential. Profitability can be significantly influenced by several key factors:

 

Location

Properties in popular tourist destinations or bustling urban areas typically command higher rental rates and enjoy higher occupancy rates. Begin with a market analysis to understand the demand in your area, determining if there are enough tourists or business travellers to sustain your rental. High tourist traffic and proximity to business districts and local attractions can indicate strong demand.


Property Type

The type of property you have also matters; unique or high-end properties often attract more guests willing to pay premium prices. Knowing this, you can assess your property’s suitability. Ensure your property meets the necessary regulations and zoning laws to operate as a short-term rental.


Seasonality

The season may impact earnings, with peak travel seasons offering higher income potential. Off-peak periods may see reduced demand. Identifying peak and off-peak seasons can help you gauge expected occupancy rates.


Guest Amenities

Amenities such as Wi-Fi, parking, and modern appliances enhance the appeal of your property, potentially increasing bookings and allowing for higher rates.


Calculating Expenses

To gauge profitability accurately, you’ll need to factor in various expenses. Cleaning costs are a recurring expense, particularly when guest turnover is high. Additionally, you’ll need to replenish amenity supplies such as toiletries and kitchen essentials more regularly. Property maintenance is another significant expense, encompassing routine upkeep and unexpected repairs to ensure the property remains in excellent condition.


Self-Management vs. Professional Property Management Services

Once you’ve considered the expenses, it’s time to weigh the property management demands. Short-term rentals typically require more hands-on management compared to long-term rentals, due to frequent guest turnover and constant maintenance. This can be challenging if you’re not experienced in the industry and don’t have the time to commit.


Working with experts in residential property management services can alleviate the burdens of managing a short-term rental. The company will handle everything, from guest screening, marketing, and booking to cleaning and maintenance. Although this service comes at a cost, it can ensure a seamless and professional rental experience for both you and your tenants. 


Get Help from Property Management Experts at Charlton

Short-term property rentals can be a lucrative venture if managed correctly, and you can capitalise on this growing market when you work with the right team. At Charlton Property Management, we can help you manage your rental investment by implementing dynamic pricing strategies to optimise occupancy rates, ensuring your residential property complies with local regulations for short-term rentals, and screening ideal tenants to ensure you get the best possible return on your investment. Contact us today.

Epsom Rental Market Update: What’s Happening with Three-Bedroom Townhouses?

By Tiri Raumati-Greenhalgh • February 14, 2025
Market Trends & Demand In Kohi-tātea (January), there were 135,000 searches by potential tenants looking for properties in Epsom. While this is still a strong level of interest, it represents a 5% decrease compared to the same time last year. During this period, five new listings entered the market. The median expected rent price for a three-bedroom townhouse in Epsom is currently $905 per week, reflecting a 1% increase compared to last year. However, one of the most significant shifts is the median days on site, which has skyrocketed to 102 days, a 538% increase from the same period last year. This suggests that properties are taking significantly longer to rent out. Who’s Renting in Epsom? Epsom attracts a mix of young professionals and families. Recent data shows: 37.3% of renters in this area are under 30 years old. 25.4% are aged between 30 and 39. These demographics indicate a steady demand from working professionals and families looking for quality homes in a prime location. How the Unitary Plan is Shaping Epsom’s Rental Market With Auckland’s Unitary Plan pushing for higher-density developments, Epsom has seen an increase in townhouse availability over the past year. This growth in rental stock may be contributing to the longer time on the market for some properties. However, this intensification also benefits renters, providing modern, high-quality housing options in one of Auckland’s most desirable suburbs. 

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By Tiri Raumati-Greenhalgh • February 10, 2025
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By Tiri Raumati-Greenhalgh • February 4, 2025
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By Tiri Raumati-Greenhalgh • January 15, 2025
With the summer school holidays coming to an end, it’s time for many families to return to a normal routine. This period also marks a busy time in the rental market, with plenty of tenant movement and landlords preparing their properties for the New Year rush. Whether you’re a landlord ensuring your investment property is ready for new tenants or a tenant settling back into a routine, now is the perfect time to take stock and get organised for the months ahead. Landlords: Gearing Up for the New Year Summer is peak season in the property management world, with increased demand for rentals and higher turnover. Here’s how landlords can stay on top of things: Prepare for Tenant Turnover : Summer often brings tenant changes as families settle before the school term. Make sure your property is in top shape to attract quality tenants quickly. This includes thorough cleaning, minor repairs, and ensuring all appliances are in working order. Inspect and Maintain : With the hotter weather, now is a good time to inspect air conditioning systems, check for water leaks, and ensure that outdoor areas such as decks and patios are in good condition. Regular maintenance can prevent costly repairs down the line and keep your property appealing. Stay Competitive : Review rental prices in your area to ensure you’re offering a fair and attractive rate. Properties priced correctly are more likely to rent quickly, reducing vacancy periods. Consider any recent upgrades or amenities that might justify a higher rent.
RTA Update, Bill update, rental update

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By Tiri Raumati-Greenhalgh • December 17, 2024
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By Tiri Raumati-Greenhalgh • December 11, 2024
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