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Success Factors For Maximising Rental Profits In Auckland

Updated: Oct 15, 2023

Short-term rentals often provide greater returns than long-term rentals. However, a common misconception is that properties need to be located in the Auckland CBD to be successful. This could not be further from the truth!

While city-centre apartments are prime real estate for short-stays in Auckland, you can also earn profitable rental returns across Greater Auckland - not only driven by location, and not just in the places you might expect!

Outside the CBD, top-performing locations from The Stay Hub’s portfolio include suburbs on the city fringe and coastal areas. A benefit to short-term renting in these locations is that there are fewer listings, meaning less competition and higher average daily rates where demand outstrips supply.

Attractive Amenities

Sought-after amenities, including off-street parking and gardens, are more prevalent outside the CBD and hold strong appeal, particularly for families. Houses with backyards can also accommodate the family dog, with pet-friendly accommodation being the most-searched amenity on Airbnb this year.

In 2022, family travel saw a 60% increase on Airbnb compared to pre-pandemic data and is a key focus for them going forward. Some of the most popular inclusions for families include pools and beachfront locations. Anything with a view is also a key selling point.

Location, Location, Location

According to AirDNA™ data, between August 2022 and March 2023, short-term rental properties around the coast of Eastern Auckland achieved an average occupancy of just over 75%, from Pakuranga, Half-Moon Bay and Buckland’s Beach through to Howick, Cockle Bay and Botany Downs.

The CBD and fringe suburbs in the Waitemata area attained only slightly higher levels. As we move further into 2023, both Eastern and Central Auckland have seen rapidly growing occupancy rates with the return of international travel.

Devonport and Takapuna topped both areas, with nearly 80% occupancy since our borders reopened and over 86% across January and February 2023.

Other seaside locations, including St Heliers and Kohimarama, have also had consistent performance that continues to increase as tourists return to our shores.

More Is (Usually) More

Of course, guest capacity is also a major driver for bookings. Nearly 40% of short-stay properties across Auckland are one-bedroom. These work well in the CBD, attracting business professionals, solo travellers, and couples on city escapes. However, multi-bedroom properties can achieve a significantly higher average daily rate (ADR).

Two to three-bedroom houses in the likes of Westmere, Ponsonby, Mount Eden, Freemans Bay, Herne Bay, St Mary’s Bay, Arch Hill, Grey Lynn, Kingsland, or Morningside are particularly lucrative. The Stay Hub has a variety of properties across these suburbs, many achieving an average occupancy of over 90% since our borders opened in 2022. Combining multi[1]bedroom properties with appealing amenities can also be a winning factor. Think spa pools and decks to lounge on and watch your earning potential become sky-high.

At The Stay Hub, the ADR for our two bedroom properties has been $280 from August 2022 to March 2023. Three bedroom properties achieved an ADR of $377, increasing to $419 across the peak months of January and February 2023. Four-bedroom short-term rentals have taken in a daily average of $576, falling just shy of $600 for the beginning of 2023.

While our multi-million dollar houses with higher guest capacity and attractive amenities see slightly lower occupancy, they can also achieve daily rates of up to $5,000, making short-term rentals in the luxury travel market highly profitable. In particular, The Stay Hub’s partnership with Marriott International Homes & Villas brings in guests where price is not a barrier.

While data across the wider market shows lower average daily rates than The Stay Hub, this is often affected by the number of self-managed properties lacking teams of experienced revenue analysts to optimise performance.

City Success

Of course, the CBD will always hold convenience and appeal for domestic and international guests. Apartments with kitchen and laundry facilities are notably attractive, where guests can enjoy the comforts of home without the often sterile hotel environment. As with the outer suburbs of Auckland, additional facilities such as pools, spas, and gyms command a premium, alongside parking, which can add $30-$50 per night.

If you are unsure if your property will succeed in the short-stay market, The Stay Hub can provide data and expert advice to estimate your earnings, ensuring investors can make the best decision based on their specific property objectives.

Find out how much your property can earn!

The Stay Hub offers a FREE appraisal service for property owners who are interested in finding out how much they can earn in the short-term rental market. Fill in the form below and we will organise a time for one of our experts to assess your property. In most cases, this will be done in person with a visit to your property. We will then put together an appraisal with your property's short-term rental value.



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