Turning an investment property into a holiday home is not a set-and-forget moneymaker. Creating a profitable side hustle on Airbnb or Stayz requires a considered strategy, including marketing, management and finances.
At the latest census, it was estimated 21 per cent of Australians owned an additional residence to the home they live in. While some may choose the traditional rental route, others might find themselves benefiting from a holiday home.
If this is something you’re considering, and you’re not sure where to start, we consulted some experts to uncover tips and tricks of the trade. From planning and logistics to furnishing and styling, consider these features of holiday home management before you take the plunge.
Your easy guide to running a holiday home
Where to start: Do your research first
You have a home, you’re considering making it a holiday rental, where do you start? There’s more to it than popping clean linen on the bed and sticking some photos online. In fact, there are quite a few logistics to research and bureacratic boxes to tick first, before you open your doors to the public.
Before you begin operating a holiday home, you’ll need to research the following:
- Local and state laws: Regulations for short-term accommodation vary between both state and local governments. For example, your local government area may have its own noise restriction laws, or specific caps around how many days a property can be let. Meanwhile, the states also have different laws. This means that what’s applicable in Queensland, may not be the same in Tasmania, for example.
- Strata laws: If you’re in an apartment block, you’ll also need to consider any applicable strata bylaws that restrict your holiday rental. Chances are, you’ll need to submit any plans to start a holiday rental to the owner’s corporation. However, your research may equally uncover that you benefit from protection laws that prevent governing bodies from outright bans on short-term rentals.
- Fire safety standards: Holiday accommodation may be subject to specific fire safety laws beyond what is required of a standard residential property. This is regulated at a state level, so check your state jurisdiction.
- Holiday home registration: In NSW, for example, short-term accommodation needs to be registered with the state Planning Authority. In Victoria, it needs to be registered with the State Revenue Office. Again, check your local and state government requirements.
- Financial obligations: You may wish to speak to your trusted financial adviser on how owning a rental home will affect your personal finances. Also be aware of any unique levies and taxes due on your holiday property in your state or local area.
- Insurance: Get some insurance quotes to ensure your home is adequately covered. Airbnb, for example, offers some liability and damage insurance (‘AirCover’), but this may not provide your preferred extent of coverage.
- Compare prices: Look into comparable holiday homes in your area. This will give you a guide for pricing and also an idea of returns to factor into your financial plan.
Once you’ve done the research, you’ll be able to build your financial plan and get moving. Then, comes the fun stuff…
Preparing your home: Furnishing and styling your holiday rental
Furniture and styling will depend largely on the type of guests to which your home will cater. If your holiday home is likely to attract groups, families with young children, couples, singles or otherwise, this will affect your furnishings and styling choices.
Having luxury furnishings and styling can add to the appeal and value of a holiday home. Just ask Matty J and Laura Byrne, whose gorgeous south coast renovation deployed very high-end finishes, from marble benchtops to Freedom’s luxe Aero fabric sofa. When the couple launched the property as a holiday home, Matty confirmed to Home Beautiful it was instantly booked every weekend for months.
Listen to Matty J on The Edit podcast for tips on running a rental home:
However, most of us don’t want to sink thousands of dollars into furnishings and finishes that will likely see a lot of wear and tear.
Furniture
Regardless of whether you’ve angled at a luxury market or something more family friendly, there are some features that work better all-round. One of those is a couch with washable covers. Not only is this a great for hygiene, but you’ll thank us when you’re not throwing out an entire couch because someone spilled some wine, or their dog ran inside after a muddy walk.
Similarly, easy-to-clean carpets, rugs, curtains and cushions will make life a lot easier.
If you have a large holiday home that is likely to be used by groups or families, also consider if you can enhance your income by adding extra bedding options. Bunk beds, trundles, or fold-out sofas allow for guest flexibility — and allow you to increase your price.
Meanwhile, consider the nice-to-haves that will add to a guests comfort and ease in the home. As Simone Mathews of Soul Home suggests, don’t forget having a full-length mirror at the property. “Think of it like a hotel room — guests want to be able to check their reflection before they go out,” she tells Home Beautiful. “Wall hooks in guest rooms are also handy for hanging things up, even if there’s a wardrobe, since a lot of guests don’t unpack.”
“A holiday property should be set up with quality in mind, but you also want guests to be able to relax from the moment they arrive, and not be anxious during their whole stay about breaking something,” Simone adds.
Styling
As a former judge of the Holiday Rental Awards, and now the styling expert on Selling Houses Australia, Wendy Moore offered some affordable, DIY tips to elevate your holiday home.
“Beautiful decoration is really the difference between a house and a home, and while I was judging the Holiday Rental Awards, I found the homes that made the biggest impact were the ones that had the extra layer of wonderful decorating ideas.”
— Selling Houses Australia host and former Home Beautiful editor, Wendy Moore
Her tips included styling to the location, such as utilising cane or rattan furnishings in coastal abodes, or investing in floor-to-ceiling curtains. “Floor-to-ceiling drapes rouse romantic ideas of weekends away with a view,” she shared. “Whether it be loft-style apartments that gaze over the city, or open plan homes that peer out across natural wonders, this style of window furnishing helps to create privacy and a touch of luxe in homes that feature expansive windows or glass walls.”
Meanwhile, Simone adds that open shelving can make it easy for guests to find things, and can also provide an opportunity for a stylish display.
Finally, greenery and flowers (faux or fresh) can be a welcome cherry on the sundae. “Add greenery: it always lifts a space and allows guests to feel connected to the outdoors. That is what the majority of all holidays are about! For real plants, ivy and peace lilies are really hardy. Or, you can use faux plants; just remember to dust them regularly.”
Need more help on styling? There’s plenty of inspiration on Home Beautiful for your perusal.
How much linen do you need at a holiday home?
“This is one of the hardest things to get right when preparing your home to be a holiday rental: understanding the quantities of items your guests will need,” begins Simone Mathews. “As a general rule, you need three of everything when it comes to linen and towels, for example, to ensure that your property/business runs with ease.”
How to nail your holiday home listing
Marketing your holiday home well will ensure its success. This means having a considered and thorough home listing, featuring all the property’s best features and perks.
Write a catchy title
“Think of your headline as your ‘20-second pitch’,” says Simone McDermid, the former publicity manager at Stayz. Include the must-know details – location, perks, top-line description – in the headline. For example, 3-bedroom house with pool in Byron Bay. Some listings will include a street name or any sought-after location details (‘beachfront’, ‘ocean views’, ‘CBD’).
Give the property a name
If you have a luxury property, consider giving it a name that can be used throughout its marketing. For example, Matty J and Laura Byrne spent months documenting the renovation of their holiday home, Chante Mer, on social media. By the time they put it on Airbnb, its name was already a well-known part of the home. In addition to featuring in the Airbnb listing, the property name has also been used for the website and social media accounts for the property.
Writing the copy
As for the rest of your listing, “Make sure you highlight the main selling points and grab their attention. If you’re targeting families, talk about the fun activities you have on tap, but for couples, make sure you highlight all of the great features that will enable a romantic and rejuvenating weekend.”
Air conditioning, complimentary WiFi and Netflix can also be offered – and featured prominently in the listing! – to enhance your home’s appeal.
Take beautiful, well-lit photos
Most of us can now take a decent photo on our phones, however, professional photography can really help your listing sing, especially if you want to create additional marketing opportunities – like a social media page or website. “You should also include photos of hidden gems around your area such as parks, gardens, cafes and beaches,” suggests Kate Walsh, former Interior Designer at Airbnb management company MadeComfy.
Planning the logistics: self-managed vs. property manager
Whether you self-manage or use a property manager for your holiday home is a decision that might be made for you. Proximity to the home, workload, and other facts of life may simply prevent you from running the home yourself.
However, if you’re able to run the property – but not sure if you should – first consider how much time and money you will save by doing it yourself. Still not sure? According to Simone, the bonus of DIY holiday home management is having “complete control over who rents your property so you can better screen who will be your guest”.
Safety tip: Don’t skimp on quality electronics! Also, ensure they’re safety tested (this may be a legal requirement in your area).
What’s the best place to leave the keys for your holiday home?
The easiest solution for the keys is to install a keyless lock box. That way, your guests can head straight to the home. Monique Eyles, co-founder Hotelesque, says, “Having to collect keys can be a very negative start to a stay.” Just don’t forget to change the code to your lock box frequently for security reasons.
However, if you live on the property or are letting a granny flat, you may be available to hand the keys directly to your guests.
How to secure 5-star reviews
From comfortable mattresses to first-class amenities, there are many things that can ensure you receive top marks for your holiday home. Often, five-star holiday homes really do need five-star amenities.
According The Block stars-turned-holiday homeowners, Rachel and Ryan, the secret to their Airbnb success lies in the quality of their mattresses, soft towels and great pillows. “Those are the things you have to invest in, if you’re marketing yourself as a luxury holiday rental,” she told Home Beautiful.
“To secure a five-star review you can add comfort to any bed by providing three hundred plus thread count linen,” Kate Walsh agrees. “Choose white over coloured sheets as they create a crisper and cleaner look to your bed, as well as upgrading your pillows and quilts. if you are able to splurge, investing in a comfortable mattress or an inviting sofa for your guest to cosy up on will result in great reviews, and return business.”
When guests arrive, bread is there on the bench top. There’s local chocolate. Cupitt’s winery is just down the road, so their wine is in the fridge, as well. It’s a nod to some of the local suppliers down there.”
— Matty J on the Chante Mer welcome basket
Meanwhile, a kind and considerate host cannot be discounted. Quick responses, the ability to answer questions about the area, and other gestures of hospitality can all contribute to a positive experience for your guest – and a great review in return!
Many excellent hosts opt to include welcome treats or basic food amenities. “We wanted to have a few little, nice, homely touches,” Matty J told The Edit podcast of his holiday rental. “There’s a bakery called Lagom Bakery, which does amazing sourdough. So, when guests arrive, the bread is there on the bench top. There’s local chocolate. Cupitt’s winery is just down the road, so their wine is in the fridge, as well. It’s a nod to some of the local suppliers down there.”
Matty added that they didn’t want guests to arrive and immediately have to “nip off to the shops”, with the couple also providing milk (“we ask what milk they want,” he added) and essentials, like laundry powder.
Tip: If your rental property isn’t as profitable as you thought, or if it’s in a jurisdiction that caps the number of nights it can be rented out, you can still make your stylish abode a side hustle. Platforms such as Aloca let property owners hire out their home for photoshoots, workshops, events and ‘micro-weddings’. Rent your property out for a couple of hours to a full day. Sounds like easy money to us.
Planning your holiday rental: A checklist
Tick off all the things you’ve completed:
- Complete required registrations, licensing, strata approvals etc. (See: Required research)
- Get insurance
- Check and complete safety requirements (e.g. fire and electrical safety)
- Buy and assemble furniture (including enough beds, seating etc.)
- Style rooms for maximum appeal
- Purchase quality bedding, including enough sheets, doonas, blankets etc.
- Take photos of the property (and surrounds, in some cases)
- Write and post the listing
- If applicable, create additional marketing assets (e.g. logos) and set up web platforms (e.g. social media, website)
- Research, interview and hire a property manager (if applicable)
- Have spare keys cut and purchase a lock box (if applicable)
Learn more about running a rental property with Matty J on The Edit podcast. Watch on YouTube or listen on your chosen podcast app.
