The sharing economy has changed the way we live. From Uber to Airbnb, and beyond, societal trends are making the world a more accessible place, bringing cultures together, and giving greater choice to consumers.
The rental property market has been turned upside down and put back together in recent years. We have a new generation of individuals with different customs, traditions, and a new outlook on life compared with their parents and grandparents.
Here are 5 emerging rental property trends to be aware of:
1. Property owners are renting out rooms in their house
There is no questioning the fact that Australia’s capital cities have a high cost of living.
This cost, along with the loosening of rental laws and societal changes, means that more people are looking for ways to supplement their loan or mortgage payments. One way of doing so is to rent out a room in your home on short-term rental websites.
To think that people would open the doors of their home to a complete stranger and live alongside them was unfathomable even 10 years ago. But today, this scenario is extremely common thanks to sites like Airbnb. There are always going to be quirks about living in the same house as a stranger on a short-term basis, but innovations such as smart locks, identity verification, and certified renter reviews have minimised these effects.
2. People are living a mobile lifestyle
Another reason why these rental arrangements continue to be en vogue is that more and more people have a mobile lifestyle. They are working from their laptop in a cafe, travelling the world, or just getting away for a week or two to soak up a new city. The flexibility of short-term rentals is perfect for this kind of lifestyle.
3. Guests expect a 5-star experience
It’s a simple fact of life: today’s luxuries will be tomorrow’s expectations. Australians in the current generation will almost always expect 5-star treatment, and this includes the places they rent.
Unlike past generations, Generation X Australians don’t want a place to simply lay their head. They want personalised service and an all-inclusive experience.
When Airbnb first started it was simple, and the expectations of guests were simple. But as we have more and more superhosts that are going above and beyond for guests, the expectations rise.
4. Renters are spreading out
Major Australian cities, such as Sydney, are starting to mature. The property market is spreading out and renters are going with it. This is driven by a growth in property prices in recent years for homes close to the city, combined with better transportation infrastructure, internet connectivity, and remote working opportunities.
The rising prices of rentals in the larger Australian cities are not conducive to individuals just starting out in their professional lives. This is why more and more people from all different walks of life are gravitating to the surrounding suburbs and beyond.
5. Investors are running their rentals like a business
Because of the continual rise in short-term rentals, property investors are starting to run their properties like a business. This includes marketing their property to potential renters to reduce vacancy rates, using concierge services to wine and dine guests on arrival, and ensuring amenities offer guests a 5-star experience every time.
It’s not as simple as posting your rental up on a vacation website and watching the money roll in. The short-term rental space is too competitive for that and you need to approach it like a business. Cash flow, expenses, marketing, hiring, and all the jazz that comes with it.
Want help managing your short-term property portfolio? Get in touch here.