At Real Copy Right, we have recently launched our ‘How to Write an Eye-Catching airbnb Description that Makes More Money.’ We’ve had some amazing success helping people understanding the mechanisms that create an airbnb description that works, so we thought we would write a book to help people improve their success rate in running their airbnb property that they could do themselves. We are essentially taking Real Copy Right globally, and we are so excited about our future.
Yet somehow, we are getting a few angry faces on our social media marketing campaigns. Why? Because people know there is a rental crisis out there and they are personally affected by the fact that properties are being removed from the long-term rental market to be used as airbnbs.
OK, there are several perspectives on this.
Let’s take the renters’ perspective. There are 30-40 people attending every rental property inspection. The prices for rentals are soaring, for some unattainable for basic accommodation, and all they see is that they will be left homeless soon if they don’t get approved for a house because their rental provider has decided to sell their property and they need to get out. It’s hard… so hard. As there are not enough homes to go around for everyone. It might mean they need to move back home to their parents. It might mean that they have to find an expensive short-term rental between homes. Or it could mean that they are forced to buy their first home… if they have a deposit and income to back it up to get a mortgage.
Let’s take the government perspective. The government have boosted the annual permanent immigrant rate to 235,000 for this year, up from 190,000. That’s 644 new immigrants moving to our shores every day. That’s potentially 214 new homes required for these people (assuming 3 people per home) every day. That’s a lot of homes to provide when we are already in a rental crisis. There are also approximately 25% of all homes that have single occupants. These are your divorced singles who have children part-time. These are your widowed parents who still live in the family home. These are people who enjoy their own company. The government would like these people to sell up, move to a smaller place like a retirement village or an apartment, to make room for our immigrants and younger family needs. These people have worked hard for their properties, and should be able to live the way they want.
Let’s take the investors’ perspective. Interest rates have effectively doubled the outgoings of their investment from 18 months ago. The government, in Victoria, has imposed over 130 new laws that relate to a standard of liveability and compliance on investment properties that have been constantly changing since March 2021 which makes it more difficult for developers who buy property for the purpose of developing new property to lease out their properties, because they would need to spend more money making the property compliant than what they would get in rent, so it’s cheaper to let it sit vacant (but now the government is imposing a vacant property tax if the property is vacant for more than 6 months). The government have changed the rules on Land Tax as from January 2024 which means that if the land on an investment is worth $50,000 now, not $300,000 now, it’s subject to Land Tax. Due to the compliance regulations, there are regular ‘checks’ that cost the owner every year. Insurances have gone up due to our ‘sunburnt country, a land of sweeping plains, of ragged mountain ranges, of drought and flooding rains’ (and fire). And don’t get me started on inflation. With all these added pressures for rental providers, they have three choices:
- pay the extra costs out of their own pocket while renters live comfortably in their ‘compliant and liveable standard’ rental property and their own home goes to ruins.
- Think outside the square to earn more money with their property through short-term rental options, including airbnb accommodation or rooming house style accommodation. This option mean that they need to provide a fully furnished property and pay all utilities including internet, which could add an additional $800-$1000 to their monthly requirement to rent out the property.
- Sell their property because the headache is too much.
What choice do you want rental providers to make? The ethical choice that leads them to go bankrupt? Most investors are just run-of-the-mill mums and dads trying to build their nest egg to ease the cost of their retirement in the future. At this stage, the burn is only starting, especially as proposed new taxes on property will be more evident from 2024.
For those investors who can afford to keep their investments, the option to provide airbnb accommodation or rooming house accommodation, believe it or not, is the more ethical option for the needs of our country. Why? For the 235,000 new people seeking a life here, for people between rentals that they can’t connect the dates between moving from their current rental or sold home to their future rental or new property purchase, for those who are in transient jobs, for those who can’t afford a hotel or the location doesn’t provide a hotel for them to stay, for those who are visiting family but can’t stay in their home, and for so many more ‘other needs.’ Of course, there needs to be a balance of long term and short term rentals, but the ‘airbnb’ and ‘flatmates’ portals create opportunities for people to lease out that spare room when people are between homes. It creates opportunities for investors to keep their investment properties in a different space, and when a new government comes in and says they are going to slash certain taxes because the government is making money again, they will be in a more comfortable position to open their property back on the long-term rental market. You can still rent out airbnb accommodation semi-long term – some people lease them out for 2-3 months. Yes, it’s at a higher rate, but all utilities are paid, all furniture is provided. It’s a win-win for both parties.
Our airbnb copy has changed the success rates of many investments with some gaining 80-100% occupancy as we target the various needs people need to stay at your property. As you know, we write all types of property copy. If you would like more information on how Real Copy Right can help any of your property needs – sales property copy, rental property copy, airbnb or rooming house copy, even your corporate copy, email us at firstname.lastname@example.org to find out more.