Property investment is one of the best ways to make a bit of extra cash. However, every property investor we’ve talked to always has the same question...

“How do I maximise my investment?”

The boom in short-term rentals is a great opportunity to make more money from your property management investment.

The short-term rentals are a great way for people with extra rooms, apartments, whole homes, or even vans to earn extra cash.

Read these savvy rental management tips, compiled by Perth property management, Thought Leaders Real Estate.

Is renting an extra room all it's cracked up to be?

Third-party platforms like Airbnb can be used for your rental property in Perth attract professionals, tourists, and business travellers. You are basically turning your humble home into a boutique hotel and attracting a higher rent. This is a very different approach to traditional renting where tenants sign a long-term lease.

Short-Term Rentals: What You Should Know

Short-term rentals are residential rental properties that can be leased for a limited time, usually between 30 days and six months.

Our property management services sees short-term rentals attracting renters because of their charm and individuality. In a world full of hotel chains, real homes allow travellers to feel like they live in the local area.

Local Legislation

To determine if your area has any restrictions or regulations on short-term rental management activity, you should consult your local laws. What length of time can you rent out your property? How many days can you rent your property? What tax will be imposed on short-term Perth property management income?

Also, you will want to verify which license is required, and what zoning codes are applicable, including requirements for smoke detectors and carbon monoxide detectors.

Consider Homeowners Association Rules

Before subletting your house, check with the homeowner's association to see what their property management services rules are regarding short-term rentals. The rules regarding short-term rentals in many Homeowners associations leases are unclear. Even though the agreement may prohibit short-term leasing, vacation rentals are typically so short that no lease should be issued. Therefore, some homeowner's associations have short-term rental companies that feel they can sublet their properties.

Additional Considerations

Before subletting your house, check with the homeowner's association to see what their rules are regarding short-term rentals. The rules regarding short-term rentals in many Homeowners associations leases are unclear. Even though the agreement may prohibit short-term leasing, vacation rentals are typically so short that no lease should be issued. Therefore, some homeowner's associations have short-term rental companies that feel they can sublet their properties.Do you own your own home, or is it a rental?

If you’re in rented accommodation, you’ll need your landlord’s permission before listing the home online. If you’re buying your own home but still have a mortgage on it, you’ll want to check with the bank to see if you can sublet the property.

If you’re planning to buy a home and would like to rent out a room as a short-term rental, you should get your real-estate agent’s advice first — both on potential homeowner’s association guidelines and on the local short term rental market.

Don’t forget to consider insurance. You’ll need to tell your insurer what you’re up to and update your policy, or else risk it being made void should you need to make a claim.

Finally, you’ll want to find out what impact this will have on your property taxes.

Do you own your own home, or is it a rental?

Your landlord will have to give permission for you to post your rental property online. If you own a home and still have a mortgage, it is best to consult your bank to find out if the bank can allow you to sublet the house.

If you plan to buy a house and want to rent out a space as a rental property, it is a good idea to consult your agent first. They can advise you on homeowner's guidelines and the local market for short-term rentals.

Insurance is an important consideration. Your insurer will need to know what you are doing and to update your policy. Otherwise, it could be cancelled if you must make a claim.

Finally, you should find out the effect this has on your property tax.

Additional Expenses

While short-term rentals may yield a higher gross return than long-term rentals it is important to remember that they generally have higher expenses. It can be more time-consuming to rent short-term properties. Common expenses when providing a property management service include cleaning fees, maintenance and utility bills.

Short term rentals are seasonal. Therefore, it is important that you consider your vacancy rates. You might not be able keep your property, or room, occupied all year. A short-term rental model is more lucrative during peak periods. A premium rate per night can be charged for investment properties when demand is high.

It can be tempting for you to rent your property out short-term, but there are some things that can really hurt you. As a property investor, you want to maximise your return on your investment.  

Thought Leaders Real Estate, is a team of experienced professionals who provide unparalleled rental management services to ensure our clients get maximum return.

Get in touch, with Thought Leaders Real Estate if you are interested in professional property management in Perth.