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Property Investing and AirBNB: The Great Unknown

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Your Investment Property | 06 Jul 2017, 12:00 AM Agree 0
Many investors are beginning to see Airbnb as a strategic opportunity to boost their yields. But what risks do you need to be aware of – and as landlords, what rights do you have if your tenants start subletting your properties? Sarah Megginson reports
  • Karin Mackay | 29 Aug 2017, 09:32 AM Agree 0
    Hi Sarah,
    Up front I have a business called Silver Service Boutique Short Stays. I started with my own apartment in Abbotsford (VIC). October 2014 I put this apartment on Airbnb. It wasn't even furnished but I used the photo's from the sale to see if there was a market for a fully furnished apartment. It went live on the Friday at 5:30 pm and I had my first booking at 6:30 pm for that night. I had to decline it as there wasn't any furniture in it. On the Saturday morning I received a booking inquiry for 3 weeks from the Monday. I suggested to the prospective guest I couldn't do Monday but would Wednesday work. From Saturday lunchtime I ran around like a mad women to fully furnish the apartment. That guest stayed for 9 weeks @ $185 per night. My apartment has been vacant 27 day in 3 years. I average $4500 per month for a 2 bedroom and 2 bathroom good size apartment. I now have 7 landlords who I have converted to Short Stay. These Landlords bought off the plan and years later they still haven't caught up with what they paid for them. I have now double their rents so they can at least pay down their mortgages. I do everything for the landlord. I go out and buy all the furniture down to the potato peeler, wash the sheets and towels, set up the apartment, organise photography and get it loaded on the internet. I try to achieve a unique luxe style type of accommodation. I even had a guest who loved the apartment so much he bought it. Airbnb are excellent to deal with when you have a problem. Their web site is easy to navigate compared to others. I set these apartments up on realestate.com.au as well. I actually saved a landlord from bankruptcy by converting her apartment to short stay.
    • Property88 | 30 Aug 2017, 02:32 PM Agree 0
      Hi Karin, Your story sounds really interesting! I can see we profiled you in the magazine a number of years ago http://www.yourinvestmentpropertymag.com.au/success-stories/karin-mackay-how-i-built-my-7-1m-portfolio-192874.aspx - it might be time to revisit your story! Contact us at editor@yipmag.com.au if you'd like to chat further.
  • Mary Clare | 10 Oct 2017, 10:55 PM Agree 0
    There are some really great Airbnb investment opportunities in Europe right now. Madrid, for example, has low property price points, rental yields as high as NYC (look at the number of billionaire landlords there to see what an excellent rental market that is) and it is poised for Airbnb regulation which actually is a good thing. Although scary sounding, regulation has actually led to increased returns in markets where it has been done effectively
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