“The secret sauce is about the data. You have to dynamically price. We use our own database; we’ve actually got an in-house analyst that we employ as well as using an algorithm.
In this week’s edition of the Elevate podcast, Samantha McLean talks to Mike Johnson of MadeComfy, a short-term letting platform. Many of your investor clients out there have probably heard stories from colleagues and friends about how much money can be made on places like Airbnb and Booking.com, but not every property and every situation will bring high returns — and some properties are still much better suited to long-term tenants.
In this episode, Mike breaks down how MadeComfy is working with agents to help them manage buyers, what type of properties are best suited to short-term letting, what the service expectations are, and where this legislation and trends in this area might be headed in the future.
SHOW NOTES / LINKS
1:44 MadeComfy manages properties on the short-term rental market; ‘like outsourced housekeeping’ in hotels, managing tenant change-overs, advertising on platforms, linen and providing “a hotel-like experience.”
3:25 Trends towards investors wanting to explore the short term vs long term letting return on investment
4:00 High growth but small percentage area of the market, so MadeComfy are partnering with agents to serve this niche
5:00 MadeComfy supply data and forecast how a property might fare on the short term letting market vs the traditional long-term letting market
6:00 Short-term letting is not the answer to better returns if you can’t find a great long-term tenant, as there are only certain properties that will get a better return
7:00 The need for dynamic pricing in short-term rentals, it’s not a linear equation and can be seasonal. The usual rental data from CoreLogic, Pricefinder etc is not enough to determine if short-term letting is a good option
9:13 Common mistakes investors make in researching short-term letting data
9:49 The most popular types of properties and locations for short-term letting based on demand volume, and the types of people they attract
12:14 Going premium with Airbnb plus, think like a guest
14:00 The listing – must have a wow picture and great copy
15:21 You can’t outperform the market – so it pays to be set up the best way you possibly can
16:50 Changes in legislation to do with Airbnb and the ‘cap’ on booked nights for short term rentals
20:11 Why NSWs new code of conduct will be a good thing, but the devil is always in the detail
21:27 Different laws and regulations are continuing to evolve in both Qld and Victoria
22:20 The future of short-term renting, where Mike feels it’s all heading.