Short-term rentals through Airbnb are still profitable for our clients, in spite of recent rates rises by Auckland Council.
Typically, the owner of an apartment in the central city would have paid around $1500 in rates before the changes. Now, if your property rents for the maximum number of nights, you might pay around $4000 to $4500.
That increase reduced profitability, which has meant some owners have removed their properties from Airbnb. That, in turn, has reduced the availability of Airbnb apartments in the city, leading to a slight rise in both nightly rates and occupancy levels. The overall result is only a small drop in profits for our owners.
What Impression does, that few other agencies can offer, is to offset the quieter Airbnb months with longer-term rentals. That allows owners to balance out their income across the year. Even with higher rates, many of our apartments are turning significant net profits of over $10,000 per annum, with a couple of stand-out performers taking in closer to $20,000 in before-tax net income.
Give us a call if you would like to more about the possibility of listing your property on Airbnb.