Permanent or Holiday rental - Which is right for you?
So… you have a property in Noosa – and a decision needs to be made. Do you rent it permanently or on a holiday basis? Let us give you some information which may help you in making that decision.
HOLIDAY RENTAL INVESTMENT
Many owners who like to come to Noosa will often take this option. You can use the property yourself from time to time, blocking out the dates that you like and come and enjoy. And the rest of the time you can have the property available for holiday guests. It will need to be a furnished property of course.
If you’ve borrowed on your property and receive an income, there are often tax advantages by negative gearing which means you’ll receive relief on a number of items such as mortgage repayments and other expenses such as repairs and maintenance, etc.
Your income over a year may look very healthy, but if you look at it on a monthly basis you will experience highs and lows. Simply put – in winter we are not as popular as we are in spring and summer and particularly in the school holidays. So – you need to be prepared for a fluctuation in your income. You will not know how much will go towards your mortgage every week – so be prepared.
Holiday guests are generally respectful to properties and because they are cleaned every week, the cleaners have a good idea of just what is going on and can check the state of the property – being your agent’s ‘eyes and ears’.
You will achieve the highest tariffs in Noosa depending how close you are to the beach. Do you have views? Are you on the waterfront? Can you walk to Hastings Street? Great photography often means great bookings. These are all things to consider.
Your income is paid at the end of every month to you from your agent.
PERMANENT RENTAL INVESTMENT
This is a very reliable source of income. You will know just how much your tenants pay you every week. Your property manager will do a condition report at the start of the tenancy, regular inspections and your income is paid to you at the end of every month. This is a very steady way of renting – obviously you cannot use the property yourself, but you can dedicate a very specific amount of income. Your property manager will arrange for any repairs and maintenance with your approval. Of course you have the choice of renting furnished or unfurnished.
Tenants will rent in most destinations.
It depends on you – do you want to use the property? It also depends on the property – often one method often works better than the other and position often determines this as well as the state of the property. We are very happy to walk you through your choices and provide income comparisons for you. Just call Brian Priebe for a confidential chat.
Property Manager, Holiday Rentals
07 5448 0966