Tips for short-term holiday letting

Online platforms such as AirBnB can be a lucrative option for property owners, however, there are certain costly red flags to watch out for prior to going ahead. For owners within sectional title schemes, be aware that most developments do not allow short-term letting, doing so could result in contravention of the body corporate rules.

In addition, should the occupants fail to comply with the body corporate's conduct rules, the owner will be liable.

Following these tips will ensure a smooth short term rental process.

- Owners should ensure that short term letting is permissible if in a sectional title development and if so, make sure that the occupant has a copy of the body corporate conduct rules

- A short term rental agreement for the tenant should include the deposit and payment terms, cancellations, breakages and a complaints policy. This clearly sets out the rights and responsibilities of both parties from the start.

- Public liability insurance should be taken out to protect against any claims made by tenants should they hurt themselves whilst occupying the property.

- To ensure that all documentation pertaining to the property has been correctly compiled, owners should seek advice from their property managers. Property owners are not necessarily property professionals, and are therefore not aware of the risks which tenants can impose on accommodation .

Your property manager or a holiday letting specialist will be familiar with all of the details and fine print involved with short-term property rentals.

Contact Prime Property for your property management and holiday letting options.