SHORT TERM LANDLORDS, BE-AWARE.
Short term rentals under fire, long term rental doesn’t pay enough. Mid term rentals here to save the day.
- New laws, taxes and fees based around AirBNB and short-term rentals.
- Landlords are fed up with low yield on long term rentals
- Australian tech company backed by Jobs for NSW creates solution for mid to long term letting, completely free to use.
It was only a matter of time..
It was only a matter of time before the fast-paced cash grab for landlords became public scrutiny, neighbors complaining about weekend residents making too much noise through the night. There has even been a number of properties with damage complaints and no key person to hold responsible.
Short term letting landlords in the Gold Coast have concerns that schoolie goers have trashed their homes and neighbourhoods, they now face the same reality that some Australians have already experienced.
Tourism sector is also suffering...
Queensland is home of Sufers Paradise and the beautiful Great Barrier Reef, arguably the best Australia has to offer for international tourists. Short term lets have been causing an imbalance for tourism, with money leaving the industry costing the state taxes, employment and the international advertising that would glorify us to the rest of the world, in return- filling our parks and resorts.
The market gets regulated….
The Australian government has stepped in and set out laws for short term letting, 180 days maximum on short term stays with fines of up to $220,000for individuals who don’t comply and fines up to $1.1m for businesses who do the same. Landlords must also register as a short term stays or face fines up to $3000 with no questions asked.
A new levy has also been added to those letting through short term rental portals, in Queensland annual registrations start at $387 and can go upwards of $1,500.
Mid term rental solution, an Australian first.
With short term rentals becoming such a worry with regulation happening right before our eyes, the reasoning behind the boom of short-term rentals was to maximise yield. Fees to have property leased on your behalf cost over 10% of rental value, some landlords face the reality that there is no other affordable solution. We have found in short term rentals that landlords are empowered to manage their property themselves and they would prefer a resident who stays longer than just a few days.
NSW Government funded mid term rental solution to help solve issue.
After all the added attention to the real-estate industry and the probability of negative gearing being abolished, the property sector needs a solution for landlords to maximise yield on their property. One product is already available to Australians, funded by the government and free to use, with a platform similar to short term letting. Landlords simply list their property and determine the length of lease starting from one month, all desired functions are done through a smart app.