Ten Minutes with Tyrone - Melbourne's Expert Airbnb Host
What was the main draw for you joining Hey Tom?
I believe the sharing economy is here to stay, and it's only going to get more ingrained in our lives in the future - and I want to be apart of it! Hey Tom have proven themselves as a major player in this space and I'm drawn to the work culture they offer as well as their commitment to their customers.
How do you see the future of Airbnb in Melbourne and what do you see as the main growth suburbs?
Airbnb in Melbourne is growing rapidly and will continue to grow, especially as more property owners are become aware of the returns possible. Demand is also increasing which is only going to put upward pressure on nightly rates as well as attract more investors to the market. As it stands Australia is Airbnb's second largest market globally, beaten only by the US and within that Melbourne contributes massively to Airbnb in Australia.
I think the suburbs to watch our for are the CBD, Carlton, Richmond, Fitzroy, Brunswick, Prahran, St Kilda, South Yarra and Port Melbourne. Essentially anywhere in close proximity to the city will experience above market returns and constant year round demand.
What do see as being the main advantages of Airbnb over other short term letting platforms?
Airbnb is by far the market leader in this space. They have the greatest market share and largest active user base. Both of these probably come from a combination of excellent marketing and a great user experience for both guests and hosts. The fact that Airbnb has the largest active user base is great for property owners as it gives them the stability of consistently high occupancy year round.
Why do you think Airbnb’s the best choice for property owners looking for a different investment?
There are several reasons why Airbnb's a great choice for property owners but at its core I think it all comes down to higher returns, increased flexibility, and greater control over the property.
Firstly, short term stays generally yield a higher nightly rate than traditional letting. Typically we find this equates roughly 10-20% (Net) above market returns and even more for some properties.
When it comes to flexibility Airbnb hosting allows owners with the opportunity to make use of their own homes, something which just isn’t possible during a traditional lease term. For example, several of our customers may be working interstate or overseas for extended periods but wish to utilise their property for their own use sporadically. Airbnb affords this flexibility and this is something many of our clients love.
Finally the heightened level of control property owners get when the lease short term on Airbnb can not be underestimated. Due to the fact guests change over frequently there is far greater opportunity to inspect the property regularly and nip any maintenance issues in the bud before the grow into larger problems. Also because Airbnb hosts rely so heavily on reviews, it is essential homes are kept in excellent condition always which makes thorough cleaning a huge priority.
What qualities in a property do you look for when building out your portfolio?
First and foremost, location location location! It doesn’t necessarily have to be right in the middle of the city or in the biggest tourist hotspot, just so long as it's a convenient place to stay for guests. We also find that unique places perform really well on Airbnb, as people are on holidays and want something out of the ordinary. Places with unique furnishings, wall art etc seem to have high appeal with guests.
What advice would you give to property owners looking to get started with short term leasing?
My advice would be absolutely give it a try! There's loads of upside on no extended commitments so you can't really lose. Arrange an inspection with us and I will guide you through the process of getting started and make sure you get the best result possible.