Holiday rentals set to become more popular than hotels within ten years
The report found that 60% of property owners across the nation believe that holiday rental accommodation will become a more favourable option for those looking for a domestic break by 2023. More than a third of these owners (38%) were confident holiday rentals could become more popular than hotels as soon as 2018 with holidaymakers clamouring for the flexibility and uniqueness holiday homes provide.
The report surveyed 1,200 holiday rental owners across a number of property types across the country, including holiday houses, bed and breakfasts, serviced apartments, cabins and cottages and provides an annual insight into Australia?s growing holiday rentals industry.
Healthy holiday rental market
The research suggests the holiday rental market is continuing to grow from strength to strength, indicating a healthy market with lucrative growth opportunities. More than a quarter of holiday rental property owners achieved a profit of over 20% in the 2011-2012 financial year and 5% secured a substantial profit of over 60%.
A third of the owners surveyed forecasted their property occupancy to be over 60% during the 2012-2013 financial year while over half (51%) of owners of self contained apartments expected their occupancy levels to be over 60%.
Anton Stanish, General Manager, The Stayz Group said: ?The holiday rental industry is in great shape and we are delighted to see that property owners across the nation are reaping the rewards of their consistent hard work. ?We have continued to witness a strong rise in traffic and the number of enquiries from holidaymakers across The Stayz Group portfolio of sites over the past 12 months and we expect this will continue into 2014.?
Over a third of owners (34%) said they chose ?holiday rentals as they afforded higher opportunities than permanent rentals, while almost one in five (19%) admit they went into the holiday rental market for better tax incentives and future earning potential.
Despite three quarters of property owners having a job in addition to their holiday rental management, more than a quarter (29%) are looking to cash in on the lucrative market by taking on another rental property to further boost their income.