Many people are now listing their homes on Airbnb as an alternative to going through the usual process of using a property management company. It’s a low-risk (thanks to Airbnb’s insurance policies) and cost-effective method of doing this, but before you sign up it pays to be aware of the positives and the negatives.
Pro: The flexibility is great. You don’t have to accept guests unless you feel like it. If friends or family need a place to stay you have the autonomy to cease bookings for that week and reserve your property for them.
Con: The money is flexible too. Unlike renting your property to a long-term tenant where you know how much money you've got coming in each month, you can have a run of heaps of bookings and then a dry period. Airbnb is often seasonal, so around public holidays and Christmas, your listing may be more popular than at other times in the year.
Nice but messy tenants
Pro: Thanks to the way Airbnb was built, tenants get reviewed as much as hosts. This means you can vet them and control who you let stay in your home. As a result, you’ll often speak to lovely and interesting people, from both interstate and overseas.
Con: You’ll also meet their mess... Unless you can afford to hire a cleaner, you'll be cleaning up between bookings. Some people can be very tidy and others can leave behind a huge mess — and you can never predict who will be the clean ones and who won't be.
A good investment yet hard work
Pro: The short-term rental market has experienced massive growth and is likely to keep growing. According to studies like the 2018 Australia’s Short-Term Rental Report by MadeComfy, the earlier you join the market the quicker you will become established and climb the ranks of Airbnb’s good reviews.
Con: When you list your property on Airbnb, you essentially become a property manager. It’s like running your own business — you have to be available 24/7 to fix any potential problems that arise and be aware of all the guidelines and procedures. For some people, this can seem like too much work, but many say the pay-off is definitely worth it.
Pro: Airbnb effectively gives you a low-cost way of advertising and getting bookings, using a pre-built system for handling bookings and payments so the process is streamlined.
Con: But even though it’s an easier process than using a property management company, it means you are on the front line when it comes to complaints and unpleasant tenants. You can't please everyone, and that's okay.
Sign up for new development alerts.
Receive every new listing in your inbox