As with all investments, it depends.
The best place to start is to first figure out your property investment strategy: are you looking an apartment or house for capital growth or cash flow?
Most of these short-term rentals are being listed by the property owner, either an investor or owner-occupier, but increasingly tenants are illegally subletting a room or the whole property, unbeknown to the owner.
Back in April this year, the inner Sydney vacancy rate was falling as people returned to the city for work and study, which created a surge in demand for rental properties.
Fast forward to now and the Real Estate Institute of New South Wales’ June 2017 Vacancy Rate Survey reports the inner Sydney vacancy rate is back up to 2.2 per cent after a jump of 0.3 per cent.
While finding a tenant for your rental property is about marketing your property to the right demographic, securing the right tenant for your investment is about thorough tenant screening and reference checking.
Like any product new to the market, to find a tenant for your rental property you need to determine what you are offering, who is your ideal customer and how you want to package your offering?
When residential vacancy rates are low (around 1% – 2%), your product is most likely in high demand, but higher vacancy rates (over 3%) signify low rental demand, which means you may need to work harder to attract the right customer.