A holiday rental property can be one of the most lucrative purchases anyone can make, but it comes with its own set of pitfalls. In order to make the most of this rental property, owners need to know how to effectively manage it. There are pros and cons to owning a holiday rental. Read on for answers to some of the most common questions regarding managing holiday rental properties.
Can my property be used for a holiday rental?
Owners of investment properties can rent their property out either as a long-term rental or a short-term holiday rental. For short-term renting purposes, a holiday rental can be rented out for up to six weeks. This length of time can change, however, depending on the Territory and State. The downside of a long-term rental is that owners must adhere to a strict tenancy legislation that covers residential rentals. Though, long-term rentals offer more security in terms of income.
Do owners need a license for holiday rentals?
A license is not required for owners to rent their property for holiday rental purposes. However, in certain situations, owners that turn to brokers or letting agents must ensure that all other parties have their licenses.
Should owners self-manage their holiday rental property?
Once owners decide to rent out their property for a holiday rental, they need to decide whether they will hire a manager or if they’ll self-manage the property. Owners that don’t live near their property should look into hiring someone else to manage the property. When choosing a manager, It’s best to choose a manager that works with a property management company. Likewise, it is important to carefully consider all of the costs involved. With some companies, owners will find that their holiday rental may turn into a loss-making proposition.
How can owners keep their property manager fees down?
Independent property managers charge significantly less than property management companies. Other alternatives include asking a local resident, family member or friend to manage the property. Whatever decision an owner makes, it is important that they check the experience and references of any potential property manager.
Getting into property management requires a learning curve. Owners willing to do the research and properly manage their properties will be able to make the most of their rentals.