Is it worth becoming an Airbnb host?


Pros and Cons

I received an email from a Client considering entering the Airbnb market in 2020. There's pros & cons. In my experience and opinion if you were fortunate to get into the Airbnb market when it initially launched into the Australian market, there was massive potential to earn big bucks as SUPPLY couldn't meet DEMAND. This was all tax free and very lucrative!


Higher risk is certainly less appealing.

However, Airbnb has changed a lot


And so have it's tactics & culture.


The ATO has entered the picture I believe for 2 reasons:

More revenue & as less housing is available to long term tenants.


Geared mainly towards attracting the guest, the risk of renting your investment out for lesser payment no longer appeals to property owners who are reverting back to traditional long term rental accommodation.

Gap in profits, high utility bills, damage by guests and no insurance coverage for Airbnb properties are just some of the cons.


Airbnb spends a lot of money making sure negative attention does not come their way. However, most hosts who run into trouble get no help through the endless loop that is Airbnb. Basically it's a platform that connects guests with hosts and both parties pay for that service.


New service fees have appeared since conception and this decreases the appeal. Airbnb tactics e.g. if you don't let guests book instantly pushing your listing further down the line mean less chance of bookings Kinda forcing new hosts to up the ante.


Penalties for being able to select your basic guest requirements like having POI also limits listing exposure. Sheer costs of hosting have increased. Algorithims that peg a bedroom for hire against a entire house bring rates down.


Higher risk is certainly less appealing.

The more remote your property is the more exposed it is to attracting a high % of guests with less than the best intentions.


I guess the question is this:

If you are considering being a host, are you prepared to take the risk to short term rent with no current legislation in place to protect your investment AND run the risk, if worst case scenario happens your insurance won't cover it?


That Superhost status that people rave about can come at a cost.


I'll let you decide.





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