Airnb

[Courham]

I think that the fire in CHCh yesterday where 10 people were injured/escaped was being used as a B&B rental. Haven't heard what caused it yet but several people suffered burns in the blaze

[Viking]

I think that the fire in CHCh yesterday where 10 people were injured/escaped was being used as a B&B rental. Haven't heard what caused it yet but several people suffered burns in the blaze

logfire was the cause I read.

[Perry]

From $290 a week to $4000 a month - boost from joining Airbnb
8 Feb 2018

A decision to try Airbnb instead of a traditional rental arrangement has allowed Hawke's Bay woman Emma Hagen to double the money she earns from a cottage on her property. Originally, it was let for $290 a week to long-term tenants. But when the most recent tenancy ended, Hagen decided it was time to try something different.

That was in June. Since then, the cottage has had an 80 per cent occupancy rate via Airbnb, at a base rate of $80 a night for two people – with an added $20 a night for any extra people staying. There is also a $40 cleaning fee. During the Christmas and New Year period, Airbnb hiked the rate in response to a shortage of accommodation.

[Nice]

From $290 a week to $4000 a month - boost from joining Airbnb
8 Feb 2018

Yes, and the workload to make it happen was also noted !

This is going to encourage more tenants to take this on when they are not usually allowed to by their lease agreement !!

[Perry]

Wonder how winter will be for such places?

Living on site would helpful, but also be something of a tie. But I imagine it's possible to block out dates, to have a break - either home or away.

The Taupo experience was reportedly rather different.

Taupo rental market tight, but ex-Airbnb homes joining market might offer hope

[Courham]

I look at places like Oamaru, went from 40 odd places on Air BnB a couple of years back to currently 151. Getting to odd extra night for your spare room is one thing, getting regular income for your former longer term rental is another. Of course it is and will be location dependent but I reckon lots of spots will be/are hitting critical numbers of places online and bookings will diminish, or prices will due to excess competition-along with returns for many.

Now I'm in Kiribati I have returned my place (from bookabach) to a long term, fixed term rental while away as is less hassle for me to coordinate form the centre of the Pacific but will probably put back on bookabach when I return

As for the article on Stuff, sure they had a nice January but middle of the year bookings may be different, but then that is the way with holiday accommodation- it is usually seasonal.

I wonder if there is data from airbnb as to the average income per year by location- I have heard in some smaller centres its not that much, as in only $3-4k.

Craig

[absoluteproperty]

I look at places like Oamaru, went from 40 odd places on Air BnB a couple of years back to currently 151. Getting to odd extra night for your spare room is one thing, getting regular income for your former longer term rental is another. Of course it is and will be location dependent but I reckon lots of spots will be/are hitting critical numbers of places online and bookings will diminish, or prices will due to excess competition-along with returns for many.

Now I'm in Kiribati I have returned my place (from bookabach) to a long term, fixed term rental while away as is less hassle for me to coordinate form the centre of the Pacific but will probably put back on bookabach when I return

As for the article on Stuff, sure they had a nice January but middle of the year bookings may be different, but then that is the way with holiday accommodation- it is usually seasonal.

I wonder if there is data from airbnb as to the average income per year by location- I have heard in some smaller centres its not that much, as in only $3-4k.

Craig

Yes, in Wellington this is a similar story. I have been on AirBnB since far before it began appearing in the papers here, few of my guests were Kiwis and 80%+ were American or European.

Since it has been so widely publicised here, there has not only been a reduction in profit margins, but an increase in listings, an apparent reduction in standards provided but also a considerable reduction in the quality of guest. Rents have risen in Wellington to the point now whereby having two of the top 10 Wellington AirBnBs on the market in terms of occupancy and income rates, I am at near break even in comparison to what other landlords in the area are making (minus my unique AirBnb utility overheads).

To put it bluntly, I am nearly better off taking the stability of a long term tenant over AirBnB, because the huge amounts of effort I put in simply is not translating into the profit margins it was 3-4 years ago.

I would imagine most AirBnb hosts specifically renting apartments are also not aware that they are considered commercial operations by insurers, and by EQC. You may not be covered by EQC in the event of total destruction of your property. Something to consider for those who do not have full replacement value sitting in their cash accounts..

[Nick G]

Interesting points. I have 3 renovated villas in inner Wellington and per-room they're all between $200 - $240 pw. High quality properties.

On a side note I hope you have structured your ownership of those airBNB rentals to avoid GST issues. 30 mins into this video https://www.youtube.com/watch?v=cIPn1LAlsGk&t=2s