How One Property Is On Track to Generate $93,504 This Year (after costs)
Overview:
Property’s projected earnings as a short-term rental (after all fees and management expenses): $7,792,/month or $93,504/year.
Property’s projected earnings as a long-term rental (after all fees and management expenses): $4,395/month or $52,740/year.
Report:
We always knew this home was special.
When we arrived at the property in 2023, we saw that the newly built 5 bedroom property was perfect for Airbnb.
The owner and our team worked closely to style the property and make it ‘show-ready’.
Let's take a look at the property’s performance so far*:
● Total cost to owner for setup (used some existing furniture in the house): $11,745
● Average nightly rate (not including any applicable discounts): $581
● Average occupancy: 83.7% (steadily increasing)
● Average monthly revenue (before any costs): $11,780/month
What we did in the setup:
● Work with the furniture that was currently at the property to enhance the property’s overall appeal.
● Arranged professional photography.
● Connected the property on all the relevant online travel agents and to all of our softwares.
● Arranged trades for minor repairs, painting, BBQ gas conversion installation, locksmith work, cleaning and gardening.
● Converted the sitting room into an extra bedroom.
● Purchased and implemented all of the necessary items in the kitchen (cutlery, ceramics, glasses, etc.), bathrooms (shampoo, shower gel, hand soap, toilet paper, etc.) and dining room (chromecast).
● Styled the property with decor.
● Here are some before and after photos to show some of the changes we made:
Before
After
Why the property has succeeded:
● Low maintenance and a solar and battery setup, means that the property’s ongoing expenses are low.
● Professional styling.
● Great guest experience that has led to positive reviews and a 131% higher booking conversion rate than similar listings.
The benefits of the property being a short-term rental:
● Additional profits.
● Owner still has access to the double-garage and two storage rooms in the house.
● Owner has flexibility to block-out dates in their home when they travel back to Adelaide with family.
● Flexibility in the lease agreement - owner can cancel the management agreement at short-notice, without needing to navigate tenancy laws.
If you are interested in renting your property as a short-term rental, please feel free to call us on 0400323891.
* Disclaimer: All figures are as of writing the case study and are not to considered as financial advice or indicative of the performance of other properties.
