Maybe you’re in the process of buying a holiday home and are weighing up your options? Or perhaps you've owned a holiday home for years but have never considered renting it out? The good news is there has never been a better time to earn rental income from your property.
International And Domestic Tourism Is Booming
You only have to look at two of the most recent trends here in New Zealand. Tourism is booming! Domestic and international tourism numbers are growing significantly, with international visitor numbers over 3.25 million over the last 12 months, and overall 35.2 million guest nights in 2015 spent in short term commercial accommodation, up 6.3% on 2014.
The growth in the tourism sector is projected to continue, and keep in mind that the domestic tourism market was worth $18.1 billion in 2015 - significantly more than the $11.8 billion international market. Clearly this is already creating pressure on commercial accommodation across the country, especially at peak times, so the role private accommodation can, and will play, is going to be important in meeting this increasing demand.
Short Term v Long Term Rental Benefits
Many holiday home and investment property owners are seeing both financial and lifestyle benefits choosing the short term rental approach. One Bachcare owner, Akshay Shah, who owns properties in Taupo and Queenstown, sums up the situation perfectly with his experience.
“We originally used our first holiday home for long term rentals. However the issue was [with our long term rentals] that some tenants didn't honour the fixed contracts, and some weren't keeping the house clean or looking after it. So it was becoming a recurring thing to look for new tenants who would stay long term and use the house well and maintain it. This wasted valuable time and resources over and above the loss of rent.”
Switching across to short term rental is not a decision the Shah family regret. Akshay continued, “After the initial transition, our rental began to match the previous fixed rental yield, obviously with the added advantage of being able to use the holiday home whenever the family wanted to.”
Akshay also commented on the benefits of the decision to have the whole short term rental process managed, “We have the added peace of mind that that the properties will be well used, but still kept in tip top condition thanks to the oversight of the Holiday Manager.”
Growth of Online Short-Term Rental Websites
High growth in holiday home rental websites like Bachcare, and other recognised listing-only sites like Bookabach, HomeAway, Holiday Houses, and Airbnb, means there’s plenty you can do to maximise exposure of your property and the occupancy rate. The popularity of holiday home rentals is set to continue with increasing inbound tourism in New Zealand putting stress on traditional accommodation, and more families putting their holiday homes up for short term rental and enjoying great returns.
The good news is that when you list with Bachcare, we can list and manage your property across all the websites mentioned above and more to gain maximum exposure and rental yield, without the hassle of doing it yourself.
So if you’re currently not getting much usage from your holiday home, it really could become a great business asset with some superb rental returns, for minimum effort!
What’s it like using a property management service?
If renting out your holiday home is now feeling like a more viable option, the next typical roadblock is the stress of managing the listing, all the bookings, the availability, plus ongoing maintenance - it’s true that it can seem overwhelming. You’re likely already time poor but would like the rental returns the holiday home could bring. And all this is amplified if you live more than an hour away from the holiday home!
The stress-free approach is to consider a holiday home management company, as not only do they take care of all the listing and promotion, but have local holiday managers in place who can do everything from house maintenance, through to meeting and greeting your guests each time a booking is made. They essentially become your local team on the ground.
Jude Pattie-Nelson, Bachcare owner of Piwari Villa in Ohakune, commented that, "The stress-free approach was one of the major attractions that saw us come onboard and have our holiday home fully managed with Bachcare." With Jude running the popular Contours ladies gym in Taupo, and her husband managing a 2000 cow dairy farm in Reporoa, there isn’t a whole lot of free time to run their Ohakune holiday accommodation.
The process from thinking about renting out the property to going live was simple and straightforward, and ultimately resulted in a fantastic result for Jude and Ian. “The entire process was super easy, from the first enquiry to when the property went live online. The support has been amazing and they go that extra mile to keep me happy, whether it is through emails or chatting with my Bachcare Holiday Manager.”
So whether you have a classic Kiwi holiday home, apartment, cottage or a luxury property, there has never been a better time to consider the potential it could have as a rented holiday home. And if you want a stress free approach that can maximise your rental returns, let’s talk!