At 5 Star Stays we help property owners get higher returns from the booming short term stays market. The keys to making great profits in the short term property rental market are location, presentation and management. 5 Star Stays specialise in setting up and managing rental properties for the short term stays market for property investors who want a hassle-free investment that is making excellent profits. 

Residential property is one of the safest ways to create reliable passive recurring income. Ideally the property should be located where there is good capital growth and a high rental demand, preferably in an area where you can expect good tenants. Areas that have good capital growth which will ultimately translate to a subsequent increase in rent which will ideally exceed the annual CPI rises. A reasonable expectation for long term rental returns in areas with good capital growth is between 2.5% and 3.5%. Well selected properties that are rented out as short-term accommodation on sites such as AirBnB can get as much as 9% to 12% return.

The one thing that you cannot change after you have bought your investment property is the location. The best time to find out the potential returns from your property is before you purchase it. For example, some of the best areas for setting up short term accommodation are also the most competitive and sometimes in these areas making good profits on a one bedroom unit may be very difficult. There is generally a lot less competition for two and three bedroom units and by spending a bit more, your returns could be three to five times more.

Our process is to start with a free property analysis preferably prior to purchase. The free report will include details of the types of returns expected from different property types. Before you purchase the property, these will be some of the considerations to assist in the right choice for maximum returns.

There is an old saying that the three most important things to consider when buying property are location, location and location. If you are wanting to make the most out of your short term rental, getting the location right is essential. To make good profits, a high occupancy rate is essential and so the property needs to be in a sought after area. If there are particular attractions and special features about the property this is an added advantage. For example :

It is important that the property is a destination or a location that has occupancy attraction all year round. Areas such as beach destinations in Melbourne are great during late Spring, Summer and Autumn, however the occupancy during the 3 to 4 months of the year could be quite low.

It is important that the property is a destination or a location that has occupancy attraction all year round. Areas such as beach destinations in Melbourne are great during late Spring, Summer and Autumn, however the occupancy during the 3 to 4 months of the year could be quite low.

There are events such as the Grand Prix, Grand Final, Tennis and various concerts that will allow significant increases in the nightly rental.

What is the competition for the unit? It is important to remember that the number of privately owned short term rental units is increasing by close to 50% per annum. As with anything in business there comes a time when supply outstrips demand and this drives the price down.

Once you have selected an appropriate property, setting it up for rental is an essential step. Our model is to get interior designers and decorators in to set the property up to 5 Star accommodation standards. This will ensure that you stand out from other properties which will maximise the returns and occupancy rates.

Great reviews are an essential part of promoting the property. When guests come to stay we aim to have a wow experience from the moment they open the door

Features could be things like a great view, large balcony, Netflix, entertainment systems and so on. Some of these you can control, others not.