The case study involves a terrace house with three bedrooms, two bathrooms and one parking space. The property has been completely renovated within the past 5 years and the property is air-conditioned with an outdoor entertaining area. The property is located in a quiet part of Paddington with easy access to the city, cafes, groceries and a village shopping feel close by.
It is available for 12 months of the year and forms part of an investment strategy which complements the owners other investment properties. The owner engaged Hotelesque to furnish and fully equip the property with a budget of $45,000. Returns have been consistent and higher than an estimated non-furnished leasing strategy.
The graph below shows the gross monthly comparison between an unfurnished estimated long term rental and the actual executive leasing return managed by Hotelesque.
Total rent paid Feb 2016 to January 2017: $90,681.00
Total guests over past 12 months: 31
Average nightly rate: $350
Average night stay per guest: 8
Annual occupancy: 71%
Estimated total rent for 12 months: $68,566.00
Please note: These results reflect gross returns excluding management fees and other costs such as wifi, Foxtel, and utilities etc . Also this does not take into account the positive impact of depreciation or tax deductions. Always refer your accountant or financial planner to confirm a complete financial position.
Harrison
$90,681.00
All year
71%
4.53 %
As an investor with a mixed portfolio of furnished and unfurnished properties, the furnished strategy helps me spread my risk and overall return. I rent this home out all year round and monitor the performance, as it is purely an investment. There is less wear and tear as guests only come with luggage and no furniture, preserving the walls and floors. The Hotelesque team are in and out of the property every couple of weeks, giving me absolute peace of mind that it is being looked after.
Hotelesque owners get a significantly higher return on their properties compared to other home hotel operators. And they get peace of mind with our award winning team managing it.