How to Recover from AirBNB Booking Cancellations and Futureproof Your Rental Operations

Short-term, Airbnb-style rental may be popular, but the bushfires and the coronavirus pandemic exposed its vulnerability to lack of visitor demand. Aside from the cancellations, you may have a tough time finding guests who are inclined to travel any time soon.

We understand how badly this can impact your revenue. We have Brisbane and Gold Coast AirBNB hosts come to us seeking advice and options on how to recover from left and right booking cancellations.

And while it’s difficult to resolve the current situation, you can minimise financial losses from future unpredictable situations by reconsidering rental arrangements for your investment property.

Instead of short-term rentals, which are more vulnerable to losses due to decline in tourism, why not offer long-term rental accommodation?

Now is the perfect time for a transition

Although it has been well documented that short-term rentals can generate 30% more profit compared to long-term rentals, with the end of the coronavirus pandemic nowhere near in sight, it could be months before the tourism and travel industries in Australia can get back on their feet.

And stability is one of the main reasons why property investors are opting for long-term rental strategies.

Long-term leases with a set date ensure that rent and money is coming in at a steady rate and you don’t need to be concerned about off-seasons or pandemic that could make it difficult or nearly impossible to find new occupants, especially for an indefinite period.

Long-term Rental Reduces Risks of Unpredictable Revenue Losses

With long-term accommodation, you can have more control of future situations that might affect your lodging business and revenue flow. Your profits will not be dependent on tourism and tourist activities, seasonal trends and unforeseeable events, such as sudden travel restrictions.

Prior to the coronavirus pandemic, Australia was faced with the bushfire incidents, which began a gradual decline in tourism and has affected the short-term rental industry.

Before these twin disasters occurred, our Airbnb properties were usually booked for months, with just a few cancellations throughout the year.

But with international travel bans, lockdowns in most cities and strict social distancing rules in place, not many people are booking travels and accommodation, or even making enquiries.

Understanding the implications and uncertainties of the situation, we have strongly advised clients and other short-term rental owners who are facing a possible loss of income for months and months to consider long-term tenancy arrangements.

Long-term Residential Tenancy and Income Stability

What is a long-term residential tenancy? Generally, this means that tenants sign an annual lease, but it could also be on a month-to-month basis.

There are a number of clear advantages to renting your property to tenants on a long-term basis.

Steady income

The same tenants occupy your property for at least a year, so long-term rentals tend to generate steady rental income. And you need not worry about busy seasons and off-peak times.

Easier to manage

It doesn’t require a lot of time to manage long-term rentals, whether you choose to manage it yourself or hire a property manager. You don’t need to advertise your property as often, deal with regular tenant turnover, or ensure the property is ready for the next occupant.

Tenant-paid utilities

Long-term tenants commonly bear the responsibility of paying for the electric bill, as well as the cost of water and sewer. Short-term renters don’t need to pay utilities and often don’t concern themselves with conserving water and electricity.

Fewer maintenance issues

As the owner-landlord, you are responsible for the general maintenance and upkeep of the property, while your tenant assumes some of the repairs and maintenance tasks.

Less expensive property management

Because of less turnover and ongoing maintenance and marketing obligations, hiring a property manager is much cheaper.

Preparing and Transitioning to Long-term Accommodation

We understand that many of you have concerns about transitioning to long-term rental.

Most concerns brought up to us by short-term rental hosts are:

  • Worried about finding a good tenant as checking prospective tenants and gathering references will take time and effort;
  • Concerned that your premises cannot be used for other purposes or carry out major changes as it is occupied for at least a year;
  • That the tenant wants to change a lot of things in the property.

These are all valid management concerns that will be addressed when you prepare your home for long-term occupancy.

You also have to determine how you will manage renting out your property. If you are planning to manage the rental yourself, then you need to get a legal lease document to be signed by you and your tenant.

If you want to take the stress out of managing your Brisbane or Gold Coast rental home, your Arrive team will be happy to help.

Rest assured that your property and all your concerns will be taken care of by an experienced property manager.

How Property Managers Can Help

Your Arrive property manager can help in addressing your concerns over switching to long-term accommodation and in managing your rental home.

From the evaluation and preparation of your property, you can count on us. We will help you on getting the best deal and return for your rental property.

Our property management includes, but is not limited to:

  • Screening and selecting potential tenants;
  • Preparation of the property for the occupant’s arrival;
  • Inventory reports and video documentation of the property’s condition;
  • Welcome guide for the occupants, with information of your home and responsibilities of the resident(s);
  • Routine inspections to monitor and ensure the condition of your home;
  • Resident online portal for rental payments, maintenance requests and other needs for communication with the property manager;
  • Owner online portal to view balances, invoices and statements.

The Arrive team of seasoned property managers will make sure you feel secure and at peace that your home will be treated as if it is our own while we manage the entire rental process from start to finish.