Many people (including property owners) hear the words “short-term rentals” and grimace. They conjure up images of 10 people sharing a 3-bedroom vacation rental or a mansion holiday home for the weekend, partying until 4 am; resulting in a massive clear-up for the owners and neighbours left with a bad taste in their mouths.
And yes, this is the reality of some short-term rentals, they can easily lend themselves to these types of scenarios, including bucks parties, hen parties, schoolies, and other miscellaneous “events”. But, there are many more reasons why people require short-term rental accommodation than this negative association gives credit for. With short-term rentals being defined as any length of stay under 3 months, this industry has a lot more depth and purpose than you may initially believe from reading the headlines.
So what are the other reasons to rent temporary accommodation if not for a girls’ weekend or wedding event? Here are 5 alternative reasons why people may require a fully furnished short-term rental:
#1 – Relocations
Across major worldwide cities, corporate relocations occur every day. With executives looking for that “home away from home” experience, this is a huge opportunity for short-term rental providers in cities to tap into. More and more corporate executives are no longer wanting to stay at extended-stay hotels, but rather get fully furnished temporary housing that can fit the whole family in. And they would normally stay for a minimum of 30 days.
The executives and their families are often looking to settle into the area that they initially rented to get a feel of that area, the nearby schools, facilities, shops, etc. These rentals can be incredibly lucrative as companies are happy to spend money to make sure their executives are settled and enjoying their new location.
Corporate relocations and furnished short-term rentals go hand-in-hand. The guests are high quality, the stays are lengthy and the impact is minimal. Find out more about what executives want from their short-term rental here.
#2 – Renovations
In locations such as Sydney, domestic construction and house renovation are an everyday occurrence. With property prices forever on the rise, some people are investing in upgrading their homes rather than buying new ones. This can involve major renovations where the property is uninhabitable, and here is where temporary accommodation for house renovation comes in.
Those owners need to rent somewhere furnished, local, and short-term. They want to remain close to their own property so that they can check on the process of the work. The owners also want to have minimum disruption to their everyday lives with school runs, social events, and commutes remaining as normal as possible. These stays tend to be long, and often extend as building work doesn’t always stick to the schedule. That means your occupancy rate will be much higher.
#3 – In between buying and selling
For those who do not choose to renovate their existing home, are downsizing, or simply just moving, there is often a period when their previous property has been sold and their new property is not yet settled. In these scenarios, people need to book short-term rental accommodation to live in while they wait to get into their new home
This is quite a common occurrence and some settlement periods can be lengthy depending on the individual circumstances. Again, this situation lends itself to furnished short-term rentals as people’s furniture is packed up and in storage while waiting to move to their new home.
In this situation, the period between properties is normally between 1 -2 months so there is no opportunity to sign a normal tenancy agreement for a rental property. Therefore, a short-term fully furnished rental provides that perfect stopgap between homes.
#4 – Insurance work
One of the more untraditional reasons why people may require short-term emergency accommodation is because of an insurance claim. It means they need to exit their home while something is being fixed or changed. A prime example of this is when a property has experienced flooding and floorboards need to be ripped up in areas such as the kitchen, bringing maximum disruption and an uninhabitable environment.
During a home insurance claim for circumstances such as this, insurance companies are obliged to find their patrons a “like for like” temporary home, which can often mean they are paying a premium on renting an available short-term property that can accommodate families comfortably.
#5 – Divorce/Separation
An unfortunate occurrence of modern-day life is the high level of separation rates between spouses. During these difficult times, short-term rentals can be a godsend for the partner who is not able to stay at home. Often in these cases, the individuals move out of their primary home and are unsure of their future circumstances with house sales, custody, etc. This is when renting a furnished property can be a big advantage as it provides flexibility, minimal hassle, and a neutral restarting point.
People in these circumstances often start renting for a short period and regularly end up extending as proceedings take longer than expected. Furnished accommodation lends itself well to these circumstances as new properties have not yet been bought/rented and existing furniture has not been divided.
As you can see short-term rentals are required for many more purposes than your traditional weekend away or holiday break. They assist during major changes in people’s lives and provide flexibility and accommodation options outside of the hotel model.
Just because people are away from home and in a temporary solution, it does not mean that they don’t want to feel at home while they are there. Short-term rentals can provide that home-away-from-home experience and can be used for many more reasons than perhaps people initially assume.
Property Providers are proud to be experts in short-term rentals in Sydney. Our market is extended stays, facilitating the scenarios above and as a result, our average stay is 26 nights and the average booking value is over $10,000.
If you want to have a higher occupancy rate and work with a short-term rental management company to look after your investment property, please contact us. We will be happy to assist!Property Providers is Sydney’s most flexible residential rental agency where our core purpose is “Helping People Live Better”. We are exclusively focused on Property Management and renting “Your Property, Your Way”. We have designed 6 different rental services covering all facets of Long-Term Leasing as well as Short-Term Stays. Unlike franchise real estate agencies, we see the value in pragmatism and flexibility. Whether you want to rent your property furnished or unfurnished, for 6 months or 5 years, we will manage your property, your way. Our bespoke marketing strategies deliver discerning international tenants that understand quality and are prepared to pay for it. If you would like to learn more please visit our website, call us on +612 9969 7599 or follow us on Facebook.
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British born and raised in London but currently enjoying all Australia has to offer. Living and breathing Sydney’s Manly Beach and forever promoting SUPball to all who’ll listen.