Editors note: This property has been sold and is no longer available for rentals.
So for the last 3 years we’ve owned a suite in a 5 star hotel on the Gold Coast of Australia.
As strange as that might sound, it’s quite common for hotels to also have permanent residents, and the prices are not really any different from ‘regular’ properties in the same area.
The downside of owning in a hotel are the slightly higher monthly building fees, but in our opinion the upside far outweighs this. Things such as secure parking, multiple swimming pools, a sauna, a jacuzzi, a steam room, restaurants in the building, a concierge, a cinema (yes… really!), and being located on a private street are just some of the reason we opted to make the investment a few years back.
With this sort of investment, there are basically 3 ways to maximise your investment. Choosing the right one for your lifestyle is key.
Long term tenant
Firstly, you are able to rent it out to a long term tenant, the typical rent will cover the costs and help pay down your mortgage albeit very slowly. However if you want a “set and forget” business that just pays down your investment for you over the mortgage term, this is ideal.
The second option would be putting the apartment back in to the hotel’s Holiday Pool; this means that when a guest books a room, they may be randomly assigned your suite, in this instance you’ll split the profit with the hotel with ~40% going to the hotel.
Yes, this is a high fee, but also the hotel will look after everything from changing the sheets to replacing light bulbs and they often times will guarantee a minimum number of days booked per year which helps with the budgeting.
The third, and usually most lucrative option, is restyling the apartment, and putting it on airbnb. This is the option we went for. Airbnb charge less than 40% in fees, and the daily rate you can charge is also significantly higher than the “standard” rate a hotel would charge for the same apartment with the basic furniture that you’d expect from a hotel.
The downside of running an airbnb is that you are responsible for breakages, changing the sheets, complaints etc, so its imperative that if you aren’t going to manage the suite yourself, that you have a good agent to run things for you. Thankfully, in most holiday areas, such as the Gold Coast, finding an agent to do this is both easy and affordable.
To put it in perspective, Airbnb rentals over Christmas and New Year, can often pay for 3 or 4 months of your mortgage repayments, so if you are willing to put in some extra effort to spruce up the unit, you could be in a position to pay down your mortgage and refinance for your next property at an extraordinary speed.
The biggest benefit for the Holiday Pool or Airbnb option is that when YOU want to use the apartment, you can block it out at no charge. We found this really handy over the last few years when we’ve wanted to visit family up here.