Room to grow seniors’ incomes through rentals

Retired couple Marie and Kel Riordan have rented out their granny flat to fund their holidays for more than two years. Picture: Richard Dobson SAVVY seniors are increasingly opening their doors to travellers, renting out spare rooms and their homes to boost their finances and beat loneliness.

Australians aged over 60 are flocking to list properties on accommodation sites, including Airbnb and HomeAway, as cost of living pressures bite, helping them cover ballooning energy bills and go on dream holidays. On Airbnb alone, seniors are the fastest-growing host demographic in Australia, raking in $158 million in 2017, new figures from the company reveal.

Seniors group COTA Australia’s chief executive, Ian Yates, said older people were embracing modern platforms to supplement their pension or superannuation, and for extra company.

“It’s an obvious way for people who have the room to generate a bit of extra income, depending on where they live of course,” he said.

“For the majority, the motivation is income based, but some also do it for the interaction with other people, meeting people from overseas and interstate.”

Airbnb said seniors welcomed 802,000 guests in 2017, with a “typical” host earning $5500 a year.

“Seniors are turning their empty nests into income engines, allowing them to supplement their income and stretch savings further,” said Airbnb Australia country manager Sam McDonagh.

The number of active senior hosts has grown 28.5 per cent year on year and seniors now make up more than 17 per cent of all Australian hosts.

But industry experts warn that renting out a room or home is not without risk, with undesirable guests, theft, property damage and illegal activities among the problems experienced by some hosts.

The Insurance Council of Australia warns against relying solely on the host protection insurance from different platforms, as there are MARIE Riordan, 64, and her husband Kel, 66, have been renting out their granny flat in inner Sydney for two-anda-half years.

With a 98 per cent occupancy rate they estimate they earn between $30,000-$35,000 a year, which helps fund their retirement and holidays.

“We are probably earning more than we thought we would,” Mrs Riordan said. “Last year we went to Eastern Europe for nearly six weeks, and we went down to the South Coast recently, so the extra income is helping us live as well as go on holidays.

“One of lovely things is we meet really great people from almost every country in the world.” gaps in the cover. Most do not cover loss or theft of personal items, cash, pets and public liability in shared areas, said spokeswoman Lisa Kable.

“Householders who offer their houses or apartments on short-term holiday rental websites are likely to find they are not protected by home and contents insurance,” she said.

“I have heard frightening stories of homeowners returning after ... guests have departed to find a completely empty house or that their home has been used for illegal activities.”