Q&A with Scott Mackey What does short term rental (STR) mean?
home-like environment than a traditional hotel or motel room.
The term short-term rentals (STRs) generally refers to residential properties that are available to rent for a short period, which I consider anywhere from two days to five months. Short-term property rental is quite variable as far as the amount of time that defines it.
People are looking for shorter leases, to make for ease of relocation as they follow jobs and careers. An STR arrangement gives more flexibility all round including not having to move furniture. And the way people value furniture has changed. It’s become more like fashion, where they’d rather have new and latest style.
In many ways, it is an enhanced version of holiday letting, which traditionally was used for beach holidays in Australia, but is now moving into the cities and other locations away from the coast. There are many STR platforms including Airbnb, stayz, HomeAway, TripAdvisor and booking.com. Most properties are fully furnished and self-contained.
Have you noticed a change in customers’ rental accommodation needs? Customers have changed in terms of what and how long they want to rent. Short terms rental platforms, such as Airbnb, are fulfilling many different needs… such as visitors into an area for work, family commitments, health reasons or travel. In many cases these people prefer to be self-contained and in a more
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It’s the ‘now’ mentality and things are ‘disposable ‘. It’s easier to move on from locations and relationships when you are in an STR arrangement.
Where are STR options more likely to occur? They can occur just about anywhere - in capital cities, near hospitals and universities, near major sporting venues, convention centres and popular wedding locations, in regional centres attracting FIFO professionals, where there is employment through new projects and infrastructure construction, and in holiday locations and tourist spots.
Are there benefits to be had in owning STR? The short-term rental platform may prove a more attractive option for property investors where regulations give owners certain controls over who can stay in their property.
Owners can be clear and upfront about conditions of renting, such as no pets and no modifications. STRs have a more simplified process in comparison with tenancy agreements when it comes to booking start/leave dates and extending dates, while still having the risk covered for property owners. People occupying properties are paying greater amount of money upfront. A property remains sale-ready and valuation-ready in condition and appearance and is not reliant on the tenant’s taste in décor. Overall, there is more flexibility for both the property owners and the renters who seek short stay situations.
