If you own a holiday home or a second property you're not utilising consistently, you may be considering renting it out to generate some extra income. There are a few different options for doing this, including listing your property on Airbnb or other holiday rental websites. However, a less-known alternative to consider is making your property a fully furnished rental. Here are a few reasons why this might be the better choice for you:
Increased Certainty: Fully furnished rentals have steady monthly rental income, whereas Airbnb may vary sporadically due to changes in demand; your March income could be double your September income. Bookings on Airbnb are not guaranteed, which is a disadvantage if you value predictability and certainty. As a landlord, the certainty of having a steady monthly rental income is a definite perk and will help with cash flow planning.
Longer Terms: The average length of an Airbnb booking is usually around 2-5 nights, meaning a much higher turnover of guests. This can result in effort needs to be put into cleaning and preparing the property on a frequent basis. A fully furnished rental is typically a longer-term arrangement, such as a month-to-month or yearly lease. Making a lower maintenance-intensive investment.
Professional tenants: Not all tenants or guests are going be perfect. Fully furnished rentals not only reduce the number of tenants you have in your home over a period, but they may also attract professionals as tenants. These tenants look specifically for a temporary housing solution while working on short-term contracts in the area. These tenants may be more reliable and responsible compared to short-term holiday renters on Airbnb.
Professional cleaning: In a fully furnished rental, the tenant is responsible for the cost of professional cleaning at the end of their stay. On Airbnb, the host is responsible for paying and organising for professional cleaning after each guest stay. Additional cleaning fees may be discouraging to guests when booking an Airbnb, and a higher turnover of guests will result in amplified efforts and costs for the host.
Less wear and tear: Fully furnished rentals may also result in less wear and tear on the property compared to short-term rentals, as the tenants are likely to be using the property as their primary residence and may be more inclined to take care of it, lowering the chances of property damage and potential maintenance costs.Time and energy
Hosting is hard: Being an Airbnb host requires quick response times and constant communication to guest inquiries and messages, as well as regular cleaning to accommodate guests needs and expectations. This can impact your social and travel freedom, as you need to be available 24/7 to accommodate guests arriving, staying and leaving. Additionally, having a flexible job or a dependable co-host is necessary to manage the demands of being an Airbnb host. While there are benefits to being an Airbnb host, it requires more hands-on work than traditional landlord.
Overall, while Airbnb can be a lucrative option for property owners, fully furnished rentals may offer more stability and predictability, as well as the opportunity to attract professional, long-term tenants. If you're considering renting out your property, it's worth considering all of your options and determining which one is the best fit for you.