The AirBnB phenomena has had an effect on out local real estate market this year. AirBnB allows the owner of an investment property to rent out their property short term to a ready made market. Most homes in Launceston will rent out for a range of $120 to $180 per night in the short term market. A comparable home on the long term market will average $45- $60 per night so represents an attractive option for the property investor.
According to the AirBnB site there are 276 properties to choose from in the Launceston area. It would be fair to assume that these properties have been removed from the long term pool. There is no doubt this has made good quality long term rental properties scarcer than what has been normal in previous years.
In our own agency we are seeing the effects of this such as
1) Up to 10 applications for the one property
2) Tenants are choosing to renew their lease agreements rather than look for a new property
3) Rental increases of around 6%- 10%
This is good news for property investors. The increase in rental return will be able to keep pace with the sale price increases. Good quality homes with economic, modern heating will command high rents and attract the very best tenants.
For tenants it will make finding a property harder. My advise to a tenant in this market is to make sure that your applications are of the very best quality. A good rental reference is gold when you are competing for a property. We are looking for tenants that have a record of no arrears and treat the property with the highest of care. A bad rental reference will come back to bite you.
Ever wondered what your home is worth?
It is always good to keep your finger on the pulse, we might have a buyer that is just right for your home. If you would like one of our team to contact you to arrange an up to date market opinion of the value of your property please contact us.