Short term rental can be cash flow positive
Australia has just passed through the busy holiday season and now is the time to give some thought to whether short-term (holiday) rental or long term rental would be a benefit to your property portfolio. Holiday homes near the beach (best for overseas visitors) or in good holiday locations are the best to use for short term (holiday) rental.
Short term rental does mean that your cash liquidity is affected but if you operate on a line of credit finance this should not be too much of a problem if the rental is handled correctly.
There are many landlords who handle their own short term rental situations through websites, targeting overseas visitors.
With the busy holiday season over, now would be the time to start planning to turn your property into a short term rental starting at the beginning of the next holiday season.
Prepare ahead and renovate soon
Over the next few months you can start to plan your upgrade of the property. If it needs serious renovation then fine, otherwise a quick paint job and a serious upgrade of fittings could do the trick, with some extra effort outside.
Whatever you do decide, the property must look spot on and be comparable to other quality holiday accommodation.
The marketing needs to be intense and needs to target people who are prepared to pay well for the convenience of a holiday location.
Managing your cash flow
If you start renting at the beginning of summer make sure that you keep cash in the account to cover you through the quiet times of the year, namely February, May/June and November. If you can manage your cash flow through these times and have a strong marketing plan for the summer months there is a very good chance you will make cash flow positive money with a short term (holiday) rental.
Filed Under: Investment Strategies • Property Investment Tips
About the Author: 
