For many holiday home owners and investment property owners, listing and renting your holiday property can be an enticing source of additional income. There are, however, a number of things to be considered, before you go ahead. The following 5 things need to be reviewed.
Permissions and Government Regulations
Before you list accommodation on Search and Stay, you’ll need to do some research into what type of approvals are necessary for your area. Council approval processes vary between local government areas and between states, and some building regulations or mortgage restrictions may prohibit you from listing your holiday house on Search and Stay,
If you list and rent your property outside of required permissions or regulations, you could be liable for large fees for undertaking unlawful activities. To avoid costly mistakes, check in with your council right from the start and follow any directives.
Charges and Outgoings
Apart from any council regulations and application fees, there are a few other costs to consider when calculating how profitable becoming a host will be. Listing your property on Search and Stay, is free for owners and you pay no per booking fees or commission. However, you will find that on most other holiday listing platforms - Airbnb, VRBO, Stayz, and Booking.com - you will pay a service fee per booking and/or commission. This can vary from website to website. There are also Channel Manager fees, that allow you to distribute and sync your property listing and bookings across numerous online booking sites.
You might also incur costs to deck out your accommodation with furnishings and appliances, and ongoing fees to make sure your accommodation remains top-notch.
Insurance
As with any property, you should consider purchasing appropriate short-term rental insurance for your building and its contents, to cover you for events that could prove devastating. Some things to tick off in your policy include bushfire, flood and storm damage, theft of contents, and public liability, as well as damage caused by tenants, and loss of rent.
Time and Effort Required
To become a successful holiday rental property host, you’ll need to dedicate some time to managing your booking requests and communicating with guests. Although most of the guest communication and booking confirmation is managed by Search and Stay's automated tools, you'll need to consider cleaning and maintenance between bookings, which can be managed by yourself or a contractor (preferably a very reliable one). You can add reasonable cleaning fees to your booking. Consider other maintenance like lawn mowing and gardening.
Tax
Any rental income from your renting your holiday property on Search and Stay is generally subject to tax, so be aware that it may affect your overall taxable income, and tax liability, at the end of the financial year. There may also be capital gains tax implications on the sale of your property.
If you are Australian, the Australian Taxation Office website provides an overview of tax issues to consider. You should seek your own tax advice from a registered tax agent before listing your property.
Once you have considered all these important factors, visit Search and Stay to list your property or the Search and Stay team can upload it for you.