Tucked close to Brisbane’s central business district, Nina Dai’s property boasts a sweeping riverfront promenade, in a suburb that is home to a plethora of bustling cafes, restaurants and lively weekend markets.
It was the ideal location for an investment property, Dai decided.
“I had always wanted to invest in property in Brisbane as I was advised the market was good, and I was able to obtain a low interest rate at the time I was ready,” shares Dai, who took the plunge in 2018 with the property, located in South Brisbane.
“It is rewarding to know that I have worked hard for an investment that is going to continue to bring me an additional income over time. In two or three years I will be able to grow my investment portfolio.”
The liveliness of the sun-drenched suburb and its distinct local culture has long attracted weekend visitors, and as a result, Dai was informed that she could tap into better rental returns if she were to lease her property out on a short-term basis – a strategic move that went on to make all the difference to her cashflow.
In fact, since teaming up with MadeComfy in October 2018, the first-time investor saw her two-bedroom apartment reap 26% higher net returns, when compared to the average long-term revenue.
This was even despite her property’s occupancy rate experiencing a dip in the quieter season; peaking at 80% occupancy from December 2018 to February 2019, and easing down to 70% in March 2019.
“People generally think their property should have a 100% occupancy rate, which is why they opt for leasing it out on a long-term basis,” Dai says.
“Many people don’t realise you can earn a much higher income renting it out for shorter periods of time and adjusting the price accordingly. Renting my property out on a short-term basis has maximised my rental income because of the dynamic pricing strategy that is used. Rather than it being rented out 100% of the time at a lower cost, my property is booked between 70% to 80% of the time at a higher nightly rate.”
It was always a goal of Dai’s to invest in the property market and she says she is proud that she was able to achieve this in her 20s, having also taken a few years to save for the initial deposit.
Still yet to expand on her investment portfolio, Dai shares that she is currently saving a percentage of the earnings from her current rental income so that she can comfortably purchase again in the future.
“You are always wanting to make sure you get the sufficient return on your investment property, so it can be challenging, at first, to take the leap and rent it out on a short-term basis as you know it won’t be occupied 100% of the time,” Dai says.
“However, as soon as I started receiving high returns on my property, that concern went away.”
Partnering with professionals
When Dai first looked into managing her investment property for shorter stays, she wasn’t confident that she would have the time and experience to successfully look after the property and ensure its longevity in a market that is built on quick turn-around.
Fortunately, an online search introduced her to MadeComfy, a leading short-term rental management company, and she hasn’t looked back since signing with them.
“MadeComfy understands what guests are looking for, which is great for someone like me who is new to the property market. They are nice people and understand the challenges that landlords face, and come up with solutions,” Dai shares of her experience with the platform, which is an official partner of Airbnb.
“They have made my role as a landlord easier because they take care of the whole booking process, maintain the property between guests, and make sure it always has the proper amenities for guests.”
It’s a partnership that has only contributed towards Dai’s “seamless experience” in investing in property, and also allowed her to adjust her property’s nightly rate, so that it appropriately leverages busier times of the year.
“It can also be challenging at times knowing that other people are staying in your property and they have the potential to damage things,” she shares.
“MadeComfy has taken away the stress of this as they have strategies in place to prevent this from happening. For example, not pricing the property too cheap, having strict house rules, and also checking the reviews of guests before they stay.”
Tips from a first-timer
For those who are looking to purchase an investment property and are interested in renting it out on a short-term basis, Dai recommends researching areas that are located near the CBD or other popular holiday destinations.
“Make sure you invest in styling your property, as this makes it more attractive to guests. It can also mean you can charge a higher nightly rate,” she explains.
“Engaging in the service of a professional rental management company will also increase your rental returns.”