Often there is some query as to how a higher priced property in the coastal areas of Australia can be positive cash flow properties and how that comes about is more often than not by putting the property up for short term rental.
Short term rentals require vigorous online and standard marketing and keeping on top of the situation. It is not like assigning the management to a property manager and almost forgetting about it, except for the 3 monthly inspection reports.
Coastal areas are much sought after and areas such as Byron Bay, the Gold Coast, Sunshine Coast, Noosa, Cairns and Port Douglas, to name a few, can attract short term visitors quite easily with the right marketing.
It is quite possible, given the right circumstances, for the net annual rental incomes in well situated and properly marketed properties, to be well in excess of double a long term rental income. They take some clever management because issues of cleaning and access need to be addressed and set up with ease of operation, but once a good system is instigated these can run quite easily.
Properties that are going to be let for short term rental need to compete very favourably with commercial properties in the types of features that they offer and the facilities need to be above average. The marketing needs to include quality photos so that they show well online and plenty of them so that lookers can see what they are signing up for.
Financially there needs to be some back up because there are some quiet times throughout the year and until some cash has built up in the trading account, there needs to be several months accessible in case of a few quiet months.
Given all that, short term rentals with the right properties in the right locations can prove to be very lucrative.