The Pros and Cons of Offering Long-Term Stays on Airbnb

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The concept of “workcation” is a result of employer flexibility in the post-pandemic era. With the growing trend towards a remote work culture, the demand for long-term Airbnb rentals has increased significantly. As people are looking for vacation spots for long periods of time without taking a leave from work, Airbnb hosts can use this opportunity to earn a steady income.

If you are an Airbnb host in Australia, you can turn your property into a long-term Airbnb rental. You can even hire reliable Australian Airbnb hosting management services to do all the heavy lifting for you. However, before you allow long-term guests into your property, you must weigh the pros and cons of this kind of rental service.

Advantages of Long-Term Rentals

A Steady Income

When you allow your guests to rent your Airbnb property for an extended period of time, you get a more steady and predictable income. In the case of short-term stays, you only earn money when a guest rents your property. Here, you don’t have to worry about new guests every two days, as the same guests are staying on the property for a longer period of time.

Favourable Cancellation Policy

As a host, you can enjoy a favourable cancellation policy at Airbnb. For any cancellation within 30 days or less, a host is entitled to a full refund of the first month’s cost. You don’t get such benefits in short-term rental bookings. So, you do not have to worry about losing money over cancellations when a guest books a long-term stay.

Differences in Amenities

There is massive competition among Airbnb properties for short-term rentals. As a host, you often need a hot tub, pool, or other amenities to persuade a guest to choose your property over your competitors. However, with long-term rentals, having day-to-day essentials, such as a washer/dryer or dishwasher, is enough. It is comparatively easier to stand out in the long-term Airbnb market.

Less Workload

When you have guests at your Airbnb property for a short period of time, you need to frequently bring in a cleaning crew, set up welcome baskets, check the guests in, and promote your property more frequently. On the other hand, long-term rentals relieve you of these duties once the guests check in.

Disadvantages of Long-Term Rentals

Lower Rental Rates

When you prioritise long-term rentals at your property, you need to lower the nightly rates in comparison to the rates of short-term stays. You need to research the market value of your property and find out the typical monthly rent for such a property.

Fewer Visits to the Property

Since your day-to-day workload is reduced, you will not need to visit the property too often. In fact, you need to schedule times for deep cleaning and other services when the guests are out for the day exploring the city.

Miss Out the Peak Season

Most Airbnb hosts surge the price of their properties during peak seasons, such as holidays, summer months, and special events in the area, as the demand for accommodation increases. However, if you have already kept the property on rent for a long-term guest, you cannot increase the monthly rates.

More Levels of Screening for the Guests

With long-term rentals, there is an increased risk of guests overstaying their welcome. In some instances, guests have been on the property for more than 30 days and decide against paying the rent. You need to protect yourself from such a legal complication.

Start by creating a written lease agreement. Ask the guests some questions regarding their purpose of stay and who will be on the property. You may also need to screen the guests on social media to see if they have any history of overstaying their welcome. You should consider using smart locks that can help you change the entry codes when the guest’s stay is over.

Conclusion

If you look at the pros and cons of long-term Airbnb renting, the pros clearly outweigh the cons. While you may need to prepare yourself for the challenges that come with long-term stays, the steady income, favourable cancellation policy, and less workload make them a great option for Airbnb hosts.

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