Real Estate

agents market homes as good short term rentals as market slows

Written by The ReReport

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.”

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