How can you make money with Airbnb and short term rentals even easier?
The following is a sponsored post. Friends of mine have used MadeComfy with their Airbnb and short term rental properties so I wanted to share some top tips and am working with MadeComfy to do that. You can read our full disclosure here.
It’s no secret I love Airbnb and other short term rental options. I’ve posted about how I do it here, including how I made $1,300 in 5 days at Christmas. Whenever I go away, I rent my place out and always make more money than I am paying for accommodation elsewhere which means I’m making money on my holidays. It’s flexible, I make more money and when I use property management services such as MadeComfy, I don’t have to do as much work.
Numerous friends of mine are solely short term rental landlords due to the higher rental yields. While the current rental return in Sydney and Melbourne is around 3%, with short term rentals the average is 6 to 8%. I know I prefer making more money when I can.
Since I rent out the family home, this post will focus on that angle. However, I am looking to purchase a rental property and when I do it will be managed by MadeComfy. My reasons for having MadeComfy do it is because they take care of everything, provide furnishing and styling tips, do the professional photography, set the right rates depending on various factors and marketing on multiple booking platforms. Having all guests vetted, all communication going through them, the cleaning etc taken care of means I make money without having to do much.
Here are my top tips to make it easier plus the most common questions.
1.) How do you keep your valuables safe when renting to others?
This question comes up all the time. Firstly, I have a minimalist lifestyle and don’t really have anything to steal, not even jewellery. Secondly, I only rent to people who have reviews and have been checked. MadeComfy is quite thorough as well, so you needn’t worry. The only time I have had any issues is when I let someone book my place who had no reviews and I didn’t do due diligence checking them.
If you are still concerned about certain valuables, arrange to keep them safe elsewhere.
2.) What about insurance?
Check your insurance, you need to make sure you are covered with short term rental insurance. Airbnb has insurance and I also have guests pay a security deposit which Airbnb keeps on hold in case there are issues. I have only had to use this once (with the person I didn’t check!)
Ultimately, if you are doing checks or going through a company like MadeComfy, your risk is minimal but you still need to have insurance.
3.) How much do I need to do to get the house ready?
This depends on what your house is like, the price you want to get for it, the area you are in etc. At a minimum, you will need to do a deep clean of your home. Think about it as if it were a 5 star hotel and what you would expect to have available. MadeComfy provides this service and gives great advice on what you need to do.
For me, when I’ve done it, I’ve done a deep clean, checked if any repairs needed to be done to the home and did them. Stocked up on travel size shampoo, conditioner, soap, toothpaste and a few essentials such as tea, coffee, long life milk etc. I tend to buy these in bulk on sale to have available for guests.
I also have guest towels and linen set aside so they don’t get trashed by my kids (my kids love art and science, you can imagine how my linen often ends up looking!)
You can either do these things yourself or pay someone to do it. When I have listed my property, I charge a cleaning fee, as do most other people to recoup the time or expense involved in getting things ready and cleaning again after guests leave.
4.) How much time is involved?
If you outsource it to a guest management company, very little time is involved from your end. Doing it yourself can take a lot more time with guest communications – inquiries can come from any timezones and you don’t want to miss your booking because you were not quick enough to get back to them, checking their reviews on Airbnb, creating your listing, taking high quality photos, deciding on a price, cleaning and setting up the home before and after, key handling etc. It can be a fair amount of work and honestly, the first few times I did it myself and it stressed me out.
Having a service like MadeComfy do it is quicker, easier and much more profitable as they have a team of pricing specialists who set the right nightly rate to maximise your rental returns.
5.) Should I do short term rentals or Airbnb?
It’s a personal choice. I love doing it, the income is great, outsourcing it makes it easier and it means we can holiday without having to budget too much for it. Whether you personally should do it is up to you, but there’s no harm in giving it a go. If you don’t like it, you don’t have to do it again. However, you might find you love the extra income!