Why offer Short Stay / Short Term and Fixed Term Accommodation

And why use Pillo to help!

Pillo manages both Airbnb (Short Stay/Short Term) and Fixed Term contracts and we believe the optimum return over a year is often a combination of offering both Airbnb and Fixed Term accommodation.  

Although legislation refers to ‘holiday accommodation’ as being ‘Short Stay’ accommodation and is for stays less than 28 days, in the market it is typically referred to as ‘Airbnb’ or ‘Short term’ accommodation. Length of stay is anywhere from one day to a month.

To confuse things the term ‘Short term’ in legislation refers to a specific length tenancy and depending on the length of the tenancy can be caught within the Act’s requirements. We refer to this type of accommodation as ‘Fixed Term’ and can cover from one to twelve months.

Airbnb (Short Stay/Short Term) accommodation is about having a guest to stay. Typically seasonal, nightly rates move depending on demand which allows you to capitalise on events, seasons and public holidays. Business travellers especially during the working week, help retain a consistent level of occupancy & nightly rates throughout the year plus provide a steady growth of repeat business.

Rental accommodation (Fixed Term) is about someone living in the accommodation. There are fixed term contracts & long term periodic. Rental is consistent per week & there are certain compliance requirements depending on the length of the term this type of accommodation, under the Tenancy Act.

The optimum return over a year is often a combination of offering both Airbnb and Fixed term accommodation.

Take advantage of the high Airbnb rates during the peak periods and special events. During the down seasons you can easily switch to fixed term contracts (2 up to 8 mths) to maintain a steadier earning level.

Not only can you maximise your returns over the year, there are important other benefits.

Key ones being your ability to retain full control and never losing any rights and access to the property. You’re able to be flexible with the use of the asset enabling you to move with and maximise the market returns or a change in your circumstances. 

Unlike long term rentals, offering Airbnb and or short term means your earning potential is not restricted with rates set in stone for long periods of time with minimal ability to make rapid and large increases if you need too.

Depending on the length of the fixed term, you can mitigate some of the limiting Tenancy law requirements. E.g., requirement of a Healthy Homes certification.

With the ability to be flexible over the use of your property, this allows you to capture all sorts of accommodation users (tourists, corporate, events & function attendees, sporting teams) as well as fixed term renters wanting only 3 – 12 months. (Contractors, employees on secondment, home renovators & movers).

The integrity of your asset always has eyes on it. Cleans are performed after each booking along with regular inspections by Pillo. Maintenance issues are spotted early & handled immediately ensuring your property is always at its best.

If there are any issues with guests these are solved swiftly and problem guests removed immediately. No tribunals required and the booking channels support you financially if required.

There may be times you, family or friends want to use the property, offering Airbnb allows you to do this.

Pillo are highly experienced guest and rental property managers, going above and beyond to provide great service to our Owners, guests and tenants.

Interested to know more?
Reach out to our team today!