Short-term letting a big boon for Geelong homeowners
THE booming short stay accommodation market has become a lucrative option for Geelong homeowners looking for another way to cash in.
Premium holiday properties across the region are bringing in anywhere between $30,000 and $80,000 a year in rent.
And with the city crying out for more short-term accommodation, there’s still room for more players in the increasingly competitive market.
According to AirDNA market data there are 1501 active listings across the Geelong region and Bellarine Peninsula.
The number has risen from 997 over the past two years as marketing agencies like Airbnb gain popularity.
Geelong business Haven Retreat Concierge has seen strong demand for short-term stays at the luxury properties it manages.
Director Marcus Falconer said it was a great way for owners to maximise returns.
He said a one-bedroom apartment could generate an average of $30,000 a year, with premium properties in the portfolio bringing in up to $80,000.
“If there are landlords who are looking for strong returns, they can get up to 40 per cent higher than a permanent rental,” Mr Falconer said.
“It’s a terrific way to go.
“We take care of the linen, the cleaning and the bookings.”
Haven Retreat Concierge provides landlords with interior styling, professional photographs and extras like in-home dining and a guest concierge to help them stand out from the crowd.
Mr Falconer said there was a big demand for short stays from people attending sporting, cultural, food and wine events and weddings in the region, as well as from corporate guests.
“Geelong, and the coast, is probably one of the shortest supplied accommodation areas in Australia, there is just such a massive demand,” he said.
“There’s also demand for corporate rentals from health consultants and the NDIA.
“At the moment in one of our properties we have a barrister who has leased it for 40 days in the last six months.”
One of the key selling points of a luxury Ocean Grove home that recently sold for $2 million was its success as a lucrative holiday rental.
With an annual turnover of $110,000 to $130,000, the vendors were reaping big financial rewards from the ocean views and 14 beds at 130 The Terrace.
Holiday-makers paid an average of $820 a night for the property through Stayz.