The advent of technology-enabled many landlords and unit owners a better chance of renting out their place for a few days. It is a massive leap from when people would spend thousands of dollars renting out hotels and other forms of accommodations, “jumping through hoops” just to reserve a slot on their holidays. These days, people are aiming to save more—and that is why they prefer to rent short term.
Not to be left behind in the world of short term rentals, many Australians relied on Airbnb as well, seeing it as a chance to earn a little extra amidst these trying times. And as time went on, the market for short term rentals increased, with as many as 137,900 active Airbnb listings in 2017 alone. At the peak, before COVID, the numbers were much higher and they are coming back now, so you can’t deny that the appeal for short term rentals has been a significant success over the years!
“I Manage My Own Airbnb?”
Yes, you may. However, there are various challenges along the way that may hinder or make business more demanding for you.
These cases differ from one another, so even if you were comfortable dealing with just one of them, it might not be a “walk in the park” when it comes to the other concerns. With this in mind, you may need help from an Airbnb management service.
“Why Do I Need the Help of an Asset Manager?”
There are various reasons why, but here are the major ones that you may encounter along the way:
Possible Legal Precautions in Short Term Rentals
This can get a bit tricky, as there are varying laws regarding short-term rentals.
Before you decide to take up the mantle of an Airbnb host, consider inquiring about the local rules and regulations on property rentals. Take note that this is dependent on the Zoning or Local Environmental Plan as well, so you need to do some pretty extensive research so as not to break any law. In addition, the NSW State government has detailed rules in place.
Possible Run-Ins with Tax Regulations
Taxes are a sensitive topic to discuss, but just because you don’t like talking about them doesn’t mean that they wouldn’t bother you with concerns in the long run.
Here in Australia, we have what we call Capital Gains Tax (CGT). It is a tax on non-inventory items, which include your property. Since you generate earnings by renting out your property, you may have CGT implications when it comes to selling. One needs to keep detailed records throughout the management to ensure compliance.
Possible Conflict with the Landlord of the Property
This is only applicable if you are not the primary owner of the property. This means that you may not be able to rent out your current home without the landlord’s permission!
Being a tenant does not necessarily entitle you to rent it out without consulting the landowner first, so make sure to discuss your plans of listing the house in Airbnb before making any decisions.
Getting the help of Airbnb management companies would lighten your load in dealing with the various challenges that come with short term rentals. They would assess the situation and handle all the heavy lifting required to successfully manage your property. Reach out to an asset manager and watch your Airbnb business grow further in time.
Are you looking for reliable professionals to handle your Airbnb property rental? We at Own Better are experts in Airbnb property management, among other things. Get in touch with us today to find out more about how we can help you!