GETTY IMAGES NORTH AMERICA/AFP/File / Justin SullivanOnline home-rental marketplace Airbnb will allow Cubans to rent rooms or entire homes under Cuban regulations allowing small enterprise
According to a 2016 Fin24 interview with Nicola D’Elia, managing director for Airbnb Africa and Middle East, South African Airbnb hosts earn on average R28 000 a month by making their property available for short-term let via the popular sharing economy website. PropertyFox says Airbnb can be an exciting income stream, but advises South Africans to do their homework carefully before buying a property specifically for this purpose.
Ashley James, co-founder of Property Fox, says, “Not all Airbnb listings are created equal and you don’t want to be stuck with a financial deadweight. The average income quoted by Airbnb will be skewed by properties in the hottest locations in SA.”
James says compared with having a long-term tenant, there is a lot of extra work involved in running an Airbnb property.
“I’d recommend a goal of securing at least 60% more income from an Airbnb property than you would from a long-term tenant. Anything less than this, and you should consider very carefully whether it is worth it.”
James owns a one-bed unit in Green Point, Cape Town, which has a near-100% occupancy.
“We are lucky because our apartment is perfectly situated in the thick of the busiest tourist hub in South Africa, and is also close to the CTICC and CBD. The same apartment in a less central location might struggle to get bookings except over the busiest times of the year.”
He said a strong, rigorous feasibility study is the best starting point, particularly if you aren’t in one of the country’s hotspots. The study should look something like this:
James went on to say that if you make the decision to invest in Airbnb, there are many ways to maximise your returns.
“For instance, you can look to secure your income by identifying the gaps in your calendar and adjusting your rates accordingly. If you lower your rates in the off season, you’re likely to attract medium-term stays that’ll go a long way to staving off the seasonality pinch. Additionally, make use of Airbnb’s new ‘Trips’ feature to add your itinerary to the user-friendly guide book and audio tour suggestions. Upload a short video to show off the attractions in your property’s area.
“You can also work on making your property as appealing as possible so you get great reviews, referrals and repeat visits. Clean décor, an awesome espresso machine, secure parking, unlimited Wi-Fi and special little touches will all work in your favour,” says James.
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