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?
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Increased profits, with some properties earring nearly double the revenue of a long-term rental during peak periods.
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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.
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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.
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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.
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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.
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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.
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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%.
To read about our latest financial insights, head to our insights blog.
