Is Airbnb Right for You this Year?

Is Airbnb Right for You this Year?
Airbnb Advice|Industry News
February 8, 2022
Stefan Nikolic

Becoming an Airbnb landlord could be a very wise move for you this year. The worst of COVID restrictions are now behind us, and we have the re-opening of international borders to look forward to this year – finally!

Firstly, let’s talk about demand.

New Zealand has made headline news around the world with our response to COVID for the past two years, so we are at the top of tourists’ list for places to visit as the world begins to return to normal. Many people will be eager to travel to a country that has a great reputation for COVID-response, and this will become a key guiding factor for tourists in coming years.

Global tourism has completely been put on hold for two years now so the surge in demand for international travel will be enormous as people finally become able to go overseas. So many people I know cannot wait to see their family and friends in different countries, and finally take those long-awaited holidays to places they’ve always wanted to visit.

For Auckland investors, switching your property to short-term rental would mean you can start accepting guests at the entry point to New Zealand. Most international flights to New Zealand from all countries must land at Auckland Airport – you are literally at the mouth of the river.

Now let’s talk about supply.

The past two years of COVID have understandably meant that a lot of Airbnb landlords have left the market and locked in long-term tenants instead. The security of a signed tenancy agreement gave these landlords certainty at a time when this was greatly lacking, but this has resulted in a lack of Airbnb listings available this year.

With much less choice for guests than before COVID, nightly rates for accommodation will be higher than average. Furthermore, a lot of hotels have closed their doors for good recently, putting more pressure on New Zealand’s lack of accommodation supply that existed even before we closed our borders.

For those hotels that have switched to MIQ facilities in order to survive, there will most likely be some stigma associated with such hotels for quite a while, even after they revert back to regular hotels. This means even less supply in a market that is already severely under-supplied.

If you are interested in taking advantage of the perfect storm in 2022, then please reach out to us at Zodiak Management to learn more about how short-term rental works and if it will work for your investment goals.

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