Capitalize on the Short-Term Rental Industry in 2023
Why consider Short-Term Rental?
With the return of international travel earlier in 2022, we’ve seen a huge increase in bookings both in 2022 and looking forward in 2023! Therefore, we’ve listed our top reasons why 2023 is the perfect time to consider short-term rental for your investment property.
1. In High Demand:
Travel demand to New Zealand has increased dramatically over the past year which is also causing demand for short-term rentals to further increase!
With many events scheduled in Auckland in 2023, including the Fifa Womens World Cup, both demand and average daily rates (ADR’s) are expected to increase dramatically for short-term rentals. At The Urban Butler, we are already seeing this demand with significant occupancy rates for July and August 2023, and our ADR reaching $518!
2. Supply Shortage:
There is still a demand and supply disparity happening for the short-term rental (STR) market in Auckland. Auckland City has approximately 75% of the STR stock that was available in early 2020 according to AirDNA.
This is also causing occupancy to further increase, which has created a huge opportunity as the market needs supply more than ever to help accommodate the increasing demand.
3. Short-term vs. long-term:
With interest rates still on the rise, long-term rental returns are being squeezed and, in many cases, just don’t stack up from a yield perspective.
On the other hand, the short-term rental market is becoming increasingly more attractive. With higher rental income, less wear and tear on the property, lower vacancy rates and the potential for personal use, short-term rental allows you to maximise your investment returns whilst having the option to use your property when you wish.
4. Sales prices:
Overall market sentiment, time on market and reduced values from the hype of 2020/2021, have also left many investors looking for an alternative to selling their property.
With average prices falling in December by 1.7% they now sit 15.1% below their November 2022 peak. This means that anyone who is selling really has no alternative, making short-term rental an attractive option.
Why Partner with The Urban Butler?
At The Urban Butler we partner with you in managing your property, and work together to understand what you need to maximise your investment.
Our management service includes the following: property advice to assist you in purchasing a property that is suitable for short term rental, presentation and styling tips, listing and marketing your property and on-going maintenance and management.