Early adopters have the edge
As every major successful economical or technology trend, the earlier you get familiar with it, the more likely you’ll make a profit from it. Think about Internet, Android apps, the first ones to have understood their potential have certainly no regret today.
Well, guess what? Short term rentals are no different to other successful trends. Short term rental platforms are a new trend hugely successful and the earlier you capitalise on it, the higher your return on investment will be. Despite the fact that Airbnb has only been launched few years ago, their activity has been skyrocketing years after years and offers lots of opportunities to get an extra income.
Who has never heard of Airbnb?
For those that are not familiar with Airbnb, it is a short term rental platform where individuals ("hosts") can rent their entire property or available rooms to other individuals ("guests"). They have total control over the available period, the price per night, and the type of guests they prefer to host.
Platforms such as Airbnb, Stayz or VRBO are going increasingly popular and are now part of our habits. Let’s explain this with simple facts.
What is your reflex when you are going to visit a new city or country and are looking for accommodations? You most likely compare hotel rooms with Airbnb prices.
What do you do when you have friends visiting you and realise your own property is not big enough to host everyone? Chances are you will look for a place next to yours more convenient and affordable than a hotel. There again, probably Airbnb.
A virtuous cycle
Now that short term rentals trend is on, timing is key because early adopters will have a massive advantage over other listings. Guests are becoming more and more exigent and you have to be prepared to cope with the new level of expectation. Having positive reviews from guests will give you more visibility, which will translate in more bookings, thus in more profitability for you.
The later you engage in that market, the harder your task will be to gain visibility in the search. You will need to excel in your hosting experience to build credibility. Alternatively, you can get help from professionals of that industry to make your listing sparks and maintains a high level of hospitality.
Time is now
There are more than 8,500 active listings in Melbourne and probably the double by the end of the year 2016. Now seems to be a perfect timing to on-board short term rentals as part of your investment strategy. The risk is very limited as the "innovators" are already enjoying great incomes from it, so joining the "early adopters" segment will certainly prove beneficial to your revenue.
Please note however that most listings are only available from time to time and that is exactly where owners considering permanent short term rentals have an advantage. Their listing(s) can be made available all year long; and if managed to high standards, their listing popularity will remain high and will keep attracting many tourists visiting Melbourne for the years to come and probably outperform the revenue generated by standard residential lettings.