Short-Term Rentals (STRs) have become increasingly popular in New Zealand over the years, and for good reason. While long-term rentals were once the norm, more and more property owners are turning to STRs as a better alternative. I’ll outline my eight reasons why I think STRs are better than long-term rentals in New Zealand.
1) Higher Rental Income
One of the most significant benefits of STRs is the potential for higher rental income. With STRs, you can charge a premium, particularly during peak seasons, for short-term stays, which can add up to a considerable amount over time. In contrast, long-term rentals typically offer lower rental rates, limiting your potential income.
2) More Flexibility
Unlike long-term rentals, STRs offer a great deal of flexibility for property owners. Hosts can decide when to rent out their property and for how long, giving them more control over their schedule and the opportunity to use their property when it’s not rented out.
3) Lower Wear and Tear
With STRs, you have the opportunity to regularly inspect your property and ensure that it is being well-maintained by your guests. Plus your property is thoroughly cleaned after each guest. This can help to reduce the wear and tear that is often associated with long-term rentals.
4) Ability to Adjust Rental Rates
STRs allow property owners to adjust their nightly rates at anytime based on demand and other market conditions. This can help property owners optimise their rental income and maximise their return on investment
5) Lower Risk or Tenant Problems
Long-term rentals come with the risk of problematic tenants, such as those who fail to pay rent or damage the property. With STRs, you have the ability to screen guests and choose the ones that you feel are the best fit for your property and set strict house rules to prevent any potential issues. Additionally, most STR platforms offer insurance coverage and protection for hosts in case of damage or other issues.
6) Increased Property Value
STRs can increase the value of a property. A well-managed STR can result in higher rental income and increased occupancy, both of which can make a property more attractive to potential buyers.
7) Better Guest Experience
With STRs, you have the opportunity to provide a unique and memorable guest experience, which can lead to positive reviews and repeat bookings. This can be accomplished by offering personalised amenities, such as welcome packages or local recommendations, and ensuring the property is clean and well-maintained.
8) Higher Demand
Finally, STRs are in high demand in New Zealand, especially in popular tourist destinations. The New Zealand government is also actively promoting tourism and has set a goal to increase international visitor arrivals by 41% by 2025. With more people looking for short-term accommodation, you can expect a consistent flow of bookings and income, especially during peak travel seasons.
In conclusion, STRs offer several advantages over long-term rentals. STRs have higher income potential, greater flexibility, lower wear and tear, the ability to adjust rental rates based on demand and other market conditions, lower risk of tenant problems, can increase your properties values, create a better guest experience and finally are in high demand in New Zealand, Additionally, STRs can provide a unique and personalised experience for guests, who often prefer the comforts of a home-like setting over a sterile hotel room. If you’re a property owner in New Zealand, considering STR may be a smart choice for your investment then get in touch, we’d love to chat.
