With an ever-changing landscape in the New Zealand property market and uncertainty surrounding prices rising and falling, now has never been a better time to look at investing in short-term rentals.
The Stay Hub can create a bespoke solution for property developers looking to invest in short-term rentals. Whether you’re developing a block of apartments, units, townhouses or any other developments in Central or Greater Auckland, keeping some or all as a short-term rental investment is a sound decision.
Why choose short-term rentals?
Increased profits, with some properties earring nearly double the revenue of a long-term rental during peak periods.
Our thorough vetting process ensures peace of mind and the safety of your property. Bonus? You do not need to worry about unsuitable tenants or missed rent payments with short-term renting.
If you or your loved ones want to use one of your properties during the year, all you need to do is block out your calendar on the required dates.
Contrary to popular belief, short-term rentals are less likely to be damaged because guests are there for such a short period of time. When you have a long-term rental, damage often goes unnoticed, accumulating over time and worsening from overuse. When tenants move out, this can result in higher repair costs. For a short-term rental, after each stay, the entire property is cleaned thoroughly. If there is any damage, this will be noted and fixed immediately.
Are you developing more upmarket or luxury properties? The Stay Hub is a Marriott International Homes & Villa’s partner, giving our owners’ access to list their property on a global travel platform that reaches over 157 million loyalty members around the world.
Read more about our premium and luxury offerings by Marriott International.
What increases the success and profits of a short-term rental?
Contrary to popular belief, a short-term rental does not need a CBD location to be successful, nor is location the only driving factor for demand. While the CBD is a lucrative spot, areas outside central Auckland can work just as well. If you are developing for the short-term rental market, there are a number of sought-after amenities that appeal to guests.
Properties in suburban areas that include off-street parking and gardens with backyards are particularly appealing to the family demographic or for group travel, while parking in the city centre can command a premium and add an additional $30-$40 onto nightly rates. Other attractive inclusions for families or groups of friends travelling together include pools, hot tubs, and beachfront locations. Properties that have a view are also great sellers.
While one bedroom properties work particularly well in the CBD, having a higher guest capacity can also be a major driver for bookings in areas on the city fringe as well as outside central Auckland, in turn achieving a higher average daily rate.
If you would like advice on developing for the short-term rental market and what does and does not work, along with information on our full suite of management services, you can book a 15-minute discovery call with one of our experts.
The short-term rental market has been booming since our borders reopened in August 2022, with The Stay Hub consistently seeing average occupancy rates of 80-90%.
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