Holiday hotspots prove tasty moneyspinners
A huge rise in the number of family properties available for short-term rent has seen homeowners in holiday hot spots cashing in this summer.
Queenstown and the Southern Lakes, Tasman, Tauranga, and the Coromandel all heave with swelling populations over summer months, and homeowners can make up to $4200 a week, according to research from Bayleys Real Estate.
People with residences in ‘holiday’ destinations could factor in five-figure returns from their acquisitions, Bayleys Real Estate national residential manager, Daniel Coulson said.
‘‘As with any property-buying decision, factors such as the location of the residence – particularly its proximity to water – along with room configurations, amenities, and age of the premises, all play a part in establishing a market letting rate,’’ Coulson said.
‘‘The better these features are in a holiday home rental, the higher the lettable nightly or weekly rates.’’
There are more than 30,000 Airbnb and holiday home rentals in New Zealand. Airbnb’s New Zealand listings have more than doubled in the past 12 months to 20,000, while Trade Me’s holiday listings site, holidayhouses.co.nz, has more than 10,000 properties available.
‘‘By aligning a personal preference for purchasing a holiday home, with the key location ‘hotspots’ sought through the online booking sites, property buyers can look at which locations deliver the best returns from short-term lettings,’’ Coulson says.
Seasonality was also a critical element for those with an eye on rental income – the highest rates were over the peak Christmas and New Year period.
Tauranga couple Kirsty Morrison and Aaron Davies have rented out their threebedroom weatherboard house on Bookabach and Airbnb for just over two weeks, raking in $4000.
This festive season they left their house on December 23 and return on January 9.
While they have been away camping, at a friend’s wedding, and staying in the Coromandel, their house has been making them an extra $4000.
‘‘It’s been nice to make some money, but it’s also been nice to force us out of our house and make us go and enjoy the summer holidays,’’ Morrison said.
The extra cash will go towards their wedding in April, and fixing up their house.
The pair are also enjoying meeting people from around the world.
It’s not a life-changing amount of money, Morrison says.
‘‘It’s not great money, because it’s not regular.
‘‘It would be easier to have a flatmate come in and get regular rental income.’’
But it is allowing them to make a passive income while soaking up the summer sun.
‘‘The only problem we have ever had was a Chinese grandma who took our electric kettle and put it on the element.’’
The grandma replaced the kettle.