Short stay accommodation how to: secrets of an award-winning short-stay business

Demand for domestic short-stay accommodation is expected to boom as Aussies opt to holiday locally due to cost of living pressures. Set yourself up to take advantage.

A growing number of enterprising Australians are eyeing the extra income value of a private accommodation offering.

A growing number of enterprising Australians are eyeing the extra income value of a private accommodation offering.

As interest rate hikes disrupt the property market’s meteoric rise, experts predict the current economic climate may well boost the short-term rental market.

Data from Airbnb suggests that increased inflation correlates with more people looking to turn a profit through holiday rentals, with the number of Australians signing up as “hosts” growing by 30 per cent in the second quarter of 2022 – in line with a 6.1 per cent increase in inflation.

Peter Dragicevich, market analyst with Corpay Cross-Border Solutions, says the pinch in discretionary spending – expected to keep bruising Aussie households this year – could be a win for the domestic travel industry.

“This past year as we’ve come out of our Covid hibernation, everyone wanted to hang out with friends or go on holiday overseas,” Dragicevich says.

Domestic travel is set to boom.

“But a lot of that’s discretionary, and given the costs of overseas travel at the moment, it’s really hard to see the average consumer or the average family being able to continue going on the international holidays that we’ve previously enjoyed.

“From an economics point of view, we’ll probably see more domestic travel because it’s cheaper to stay home and travel in Australia. We’ll see more staycations or road trips than people jumping on planes.”

According to Statista predictions, the holiday rental market in Australia is set to bring in a whopping $2.04 billion in revenue in 2023 – up 28 per cent from last year.

Property management company Made Comfy compiled available Airbnb data from the year ending October, 2022, and found short-term rental guests in Australia booked 21.1 million nights, with an average occupancy rate of 72 per cent.

The average daily rate over that period was $244.

In addition, the pandemic-driven demand for regional property saw many owners cashing in on significant capital growth as well as surging rents.

Inviting and homely.

SHORT-STAY ACCOMMODATION: HOW TO DO IT BEST

For homeowners considering entering the holiday rental market as an untapped revenue stream, researching success stories is a good starting point.

The top gong at Stayz’ 11th annual Holiday Home of the Year Awards went to New South Wales’ Attunga KV, a seven-bedroom oasis nestled in 150 acres of lush rainforest, while Queensland’s Buderim Rainforest Retreat and Victoria’s Bootmakers Cottage took silver and bronze respectively.

Attunga’s chief executive and founder, Charlie Puchala, says the Kangaroo Valley property brings together her three tenets of design philosophy: it’s sustainable, artisan-led and has people at its heart.

“The place isn’t so much the point – it’s how people are going to use it,” Puchala says.

“With Attunga KV, the really critical pieces for me were, if we have this really big, beautiful property where you have six or seven families and children running around, how does that affect the use of the spaces?”

Puchala’s understanding of what people want has led to a successful career across several facets of the property sector. She also owns a Sydney construction company and an interiors hub, additional channels that support profitable return on her investment.

Attunga’s chief executive and founder, Charlie Puchala. Picture: Richard Dobson

Fundamentally, she says, the key to success is giving guests an unforgettable travel experience.

“Obviously you want it to feel beautiful, interesting and luxurious,” she says, “but you can’t be too precious with it.

“You want people to feel truly at home, for them to relax – and that’s just not something they’re going to do if they’re worrying about their kids running in with muddy feet and you’ve got white wool rugs lying around everywhere.”

THE PSYCHOLOGY OF THE PERFECT WEEKENDER

Attunga’s answering design is at once luxe but welcoming, grand yet eco-minded.

Take the “vine dine”, one of Puchala’s favourite spots on the property.

“It allows for 30 people to dine underneath it, and it’s surrounded by these divine lemon and orange trees,” she says.

The rustic alfresco space feels something like Positano by way of the bush, with salvaged silver gum trunks from around the property supporting an overhead trellis of climbing foliage.

“These huge winds and storms come through … each year and they knock a lot of trees over,” Puchala says. “Watching the process – from the storms, to the tractors heading out to find the trees, to the structure being erected and then finally for it t

o have been transformed into such a special meeting place – it just feels so holistic.”

Puchala dreamt of a fine arts career before her parents insisted she pursue a practical path in finance and accounting. She now leans on that hard-won financial knowledge to ensure the property’s business viability.

Attunga before …

… and after

“For me, it’s about providing spaces where you can get away from the noise if you want to,” she says. “If you want to go and enjoy cocktails, or play some board games, providing the beautiful space that you can do that in. If you want to go and cook, and put the stereo on and light the bonfires and they have the kids around, it’s about making those bases far away enough from each other where the noise doesn’t transfer. So it lets people create beautiful memories the way that they want to.”

SHORT-STAY ACCOMMODATION, STAYZ, AIRBNB: TOP TIPS

* Small, charming details lift the space and experience: Puchala put a salvaged temple door from an Indian junkyard into a wall, the traditional blue of Jaipur set twinkling anew.

* Factor seasonal weather into your schedule: Heavy storms and rain meant that Attunga KV’s renovation took four to five weeks longer due to environmental factors, likely costing bookings.

* Ensure you have a budget buffer: “The paint just wouldn’t dry in the damp,” Puchala says. “Internally, we had commercial-sized gas heaters just so that the paint could dry.”

* Guests won’t remember minutiae, but they will never forget a warm welcome: Flowers on the table, cheese and wine on arrival, ample tea for the pot all say, “Stay a while and unwind.”

Originally published as Short stay accommodation how to: secrets of an award-winning short-stay business