Hi All,
I’m considering renting one of my IPs as “short term accommodation” in Perth. This would be targeted at migrants and business goers, rather than holiday makers as it’s located in a metro area.
Two questions:)
a) Has anyone had experience with this? Is it possible to achieve a vacancy rate of 50%+?
b) Do you require additional permissions to let a property as short term accommodation? I’ve heard that local councils are cracking down on this as neighbours etc are getting annoyed with holiday goers coming and going.
If anyone has experience in this area I would love to hear from them!
Cheers
Wayne
I have no experience in this area but have done a hell of a lot of reading on hotel and serviced aprtments.
It takes even the best establishments around three years to get there marketing well established and get a good crew of returning and new customers which is the key to high occupancy.
From the westpac 2006 hotel report, Perth has about 75% occupancy in the hotel market and is tipped to increased slightly in 2007 and 2008. Perth is expected to have 6% growth in occupancy for 2007 and 2008. It has 1.5% additional hotel rooms under construction and 2.8% additional serviced apartments under construction. So it would apear acoomodation rates in Perth will well and truly be on the rise.
Traditionally hotels have the highest occupancy rates accross the country. Average stays across the nation is 2.2 nights. So youd need to factor in lower rates than 75% at best. And youd need to factor in that it will take you up to three years to achieve your maximum rate.
Hope this helps. Im sure som people with actual experience can provide real occupancy rates.
Good Luck!
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