Holiday rental properties vs longer term leases in the Greater Port Macquarie Hastings region – the benefits.
Beachscape manages over 80 properties along the coastline of greater Port Macquarie – from Port Macquarie down to Dunbogan including Lake Cathie, Bonny Hills, North Haven and Laurieton (postcodes 2444, 2445 and 2443).
Our Beachscape Property division manages approximately 25 long term furnished and unfurnished investment properties. In addition our sister brand Beachscape Holiday Rentals manage over 55 holiday homes in the Port Macquarie Hastings area.
Benefits of Airbnb: holiday rentals to NSW GDP
The benefits of Airbnb short term holiday rentals to the owners of the properties are obvious in regard to rental returns and occupancy levels, and the ability to use the home themselves during the year. Of course having the property looked after by Beachscape is another huge benefit as we are the only agency in the region to achieve an Airbnb Superhost status. *(1)
The Airbnb phenomena *(2) is also a great benefit to the local community. Ask any café owner, restaurant, retailer, club and tourist attraction operator and many other businesses (groceries, petrol, hairdressers etc) who are grateful for the increased numbers of tourists and visitors. In Australia alone it is estimated that Airbnb contributed $13.6 billion to Australia’s Gross Domestic Product (GDP) and supported almost 95,000 Aussie jobs in the 12 months to March 2023 *(3)
- Airbnb activity accounted for nearly 8 percent ($13.6 billion) of the Australian tourism industry’s contribution to GDP, up from 5 percent in 2019
- One in every 14 jobs generated by tourism in Australia is associated with Airbnb
- The report *(3) shows dispersal of tourism away from urban areas
“Airbnb has been at the heart of some of the trends reshaping the nation’s travel and tourism industry, including the shift in travel away from cities and towards more rural communities… Domestic travelers have been crucial to the tourism sector’s resilience over the past three years as Aussie guests saw opportunities in domestic travel as a substitute for international holidays, with self-drive and regional trips increasing in popularity which led to a wider dispersion of tourism spend outside the traditional or ‘popular’ destinations in Australia.” Kristian Kolding, Head of Consulting for Oxford Economics Australia
In NSW alone Airbnb tourism benefits from over $3.7 billion dollars of revenue. As the mid-north coast of NSW is an increasingly favorite destination for short and longer stays, Airbnb properties are benefitting our local economy. Big time. Visitors who stay for more than a day and are here to enjoy themselves and spend their dollars in a region that offers so much.
Landlords in the Port Macquarie area – holiday renting vs permanent tenancy
Landlords and property owners who have, or are considering renting their properties, need to consider the pros and cons of their options. Property management for longer term leases versus holiday renting (with an additional option of short term lease for fully furnished homes or apartments) bearing in mind cashflow and the annual return on their investment. Beachscape will be happy to discuss the best option for your investment property.
Not all properties are suitable for holiday renting. The traditional saying in real estate is true for holiday rental homes top performing features: location, location, location. Followed by swimming pools and views (preferably ocean views) and amenities that stand-out from the crowd. Travelers have high expectations these days. Guests wish to stay in a place better than their own home.
Do Airbnb holiday rentals take housing away from permanent tenants in the Port Macquarie Hastings region?
At Beachscape we often get this question. Less then 2% of the Beachscape holiday rental properties have been converted to long term leases, most properties were sitting idle most of the year and were used as holiday houses by the property owners a couple of times a year. Those houses (98% of our portfolio) were never available for lease and most likely never come available for lease due to owner preferences and past experiences.
Get the best of both worlds, combine holiday and Airbnb rentals with longer term leases.
At Beachscape we aim to get the best results for our clients, and can easily switch tactics between holiday renting and furnished leases. Often property owners wish to occupy their property over Christmas and summer weeks. In the slower seasons (autumn, winter, spring) we market the property for longer term leases for 3, 6 and 10 months. This benefits both the landlords with a steady income, plus a variety of tenants such as students (university terms run end Feb to end November), people relocating and wishing to rent prior to buying, people awaiting the completion of their new home being built, project workers on short term contract etc. In today’s competitive market, with high mortgage pressures, the combined strategy between holiday renting and longer-term leases works wonders for your rental returns.
Landlords in the Port Macquarie Hastings area: are you applying the right property management strategy for your investment property? Are you getting the best out of your property? Get in touch with beachscape to discuss your property management options. Escape the stress of managing your rental property with Beachscape. www.beachscape.com.au
Footnotes:
- beachscape holiday rentals is proud to be the only agency in the area to be an Airbnb Superhost. Easy for 1 property, hard work when managing 55+ properties, as all properties need to perform well. All our team strive to deliver the very best for our property owners and their guests.
To qualify as an airbnb Superhost, we have to meet the following tough criteria:
- Response rate: a 90% or higher response rate (within 24hrs) Beachscape achieved in 2023 (Jan-Dec): 98%
- Number of stays: completed 10+ stays that equal 100 nights or more Beachscape achieves: 858 stays
- Cancellation rate: a cancellation rate of 1% or lower. Beachscape: 0%
- Overall rating: a 4.8+ rating for the past 365 days Beachscape: 4.81; 88.5% of guests rated us 5 out of 5.
(2) Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home, and has since grown to over 4 million Hosts who have welcomed over 1.5 billion guest arrivals in almost every country across the globe. Every day, Hosts offer unique stays and experiences that make it possible for guests to connect with communities in a more authentic way.
(3) Link to the full report from Oxford Economic – Airbnb’s contribution to gap and jobs. https://news.airbnb.com/en-au/oxford-economics-report-shows-airbnbs-contribution-to-gdp-and-jobs/