Deeon Ward with wife Lauren and 11mth old son Arlo at their Rose Bay apartment. Picture: Sam Ruttyn
EASTERN suburbs agents are starting to market properties as attractive short-term rental propositions, in an effort to generate interest in a slowing market.
An advertisement for a one-bedroom apartment at 3/18 The Avenue, Rose Bay, going to auction on November 10 with a $725,000 price guide, boasts: “An ideal investment with great short-term rental prospects”.
Owners Deeon Ward, 31, a builder, and his wife Lauren were pleasantly surprised to be getting an average of $1500 a week on short term-rentals compared with the $750 they might have got in a long-term lease.
3/18 The Avenue, Rose Bay has been beautifully renovated
“I’m still asking myself now how this was possible,” Mr Ward said, “but I wasn’t really going to argue about it.”
Such rentals are attractive to grandparents from overseas visiting family and also big firms wanting an alternative to a hotel room for their employees doing business in Sydney.
He and Mrs Ward, who have a 11-month-old son, Arlo, with another on the way, live in a two-bedroom Randwick unit but are now looking to sell their Rose Bay investment property to fund an upgrade to a larger home.
But the short-term rental is proving such a success he has a Plan B if he doesn’t get the price he wants at auction.
It has a sense of space despite being just a one-bedder
“A different approach would be to keep them both and rent them both out as short-term rentals,” he said.
Leon Parker, of Belle Property Surry Hills, said the short-term rental appeal is a point of difference that’s intriguing buyers.
“Anything that gives a person more opportunities is a great product,” he said.
“Most of those looking are owner-occupiers but when I’ve mentioned it’s such a strong platform for short-term rentals they’re gobsmacked … down the track if they want to upsize they know their leasing opportunities are outstanding.”
The couple were surprised by the lucrative return
A spokeswoman for the short term-rental site, HomeAway (formerly Stayz) said there’d been a steady increase in the popularity of holiday rentals in Sydney.
Kathryn Sutton, who operates short-term rentals in Annandale, Pyrmont and Paddington, said she had almost 100 per cent occupancy in her pet-friendly one and two-bedroom properties.
“I was surprised — it was a lot more profitable than I thought because your property can have a positive cash flow as opposed to many who have investment properties negatively geared and having to put money into it each month.”
3/18 The Avenue, Rose Bay is stylish and comfortable
She said new state government laws that meant the properties could only be on short-term rentals for half the year would have some impact.
“There’ll still be a market for longer term executive rentals and people will want fully furnished rather than unfurnished, but I’ll see what’s possible when the laws are clearly defined.”