Airbnb spike hurts long-term renters on Gold Coast

GOLD Coast Airbnb listings boom ahead of the Commonwealth Games but it’s hurting long-term renters.

GOLD Coast Airbnb listings are rocketing, with the Commonwealth Games promising to be a bonanza that outstrips the traditional Christmas-New Year holidays for mums and dads who have jumped on the short-term rental bandwagon.

The lure is the prospect of being able to fetch more money for a central Gold Coast property in a single night during the Commonwealth Games than what can be made in a week with a traditional permanent tenancy.

But while the dollars will be pouring in for savvy landlords, the downside is the impact on traditional rental tenants who increasingly are being pushed out of long-term leases.

The short-term rental industry has become so big on the Gold Coast that Airbnb providers are opening on the Gold Coast instead of larger cities such as Melbourne; Airbnb listings on the Glitter Strip have increased 73 per cent in the past year; and the already tight long-term rental market is tipped to contract further as fewer properties are available.

This luxury waterfront mansion at Surfers Paradise is available via Airbnb for $878 a night.

Harcourts Coastal business development manager Brett Martens said it was affecting permanent listings around Broadbeach and Surfers Paradise where “we’ve had up to 50 groups through inspections”.

Mr Martens said some would-be tenants are going through up to 10 inspections before they secure a property — often at a cost.

“Sometimes people offer more money than what is being asked but more so, potential tenants are offering to pay six or 12 months in advance,” he said.

High demand continues further south. This $194 per night Kirra Beach unit will fetch $850 per night via Airbnb over the Commonwealth Games.

REIQ Gold Coast Zone chairperson John Newlands said while Airbnb had previously not suited a lot of owners because of the logistics required in key handover, cleaning and maintenance, the emergence of specialist property managers could change that.

“Especially if they are able to help owners get a higher return. It could put the mainstream rental market under threat,” Mr Newlands said.

“Mainstream agents like myself could lose properties to agencies like that, as owners could be attracted by the higher income returns.”

This Mermaid Beach property can currently be leased through Airbnb for $420 per night, before surging to $800 per night over the Commonwealth Games.

But Mr Newlands said ultimately it was traditional renters who were predicted to lose out.

The rise of Airbnb is contributing to the city’s existing rental crisis. The latest REIQ data showed a vacancy rate of 1.9 per cent, with predictions of further tightening.

Jumping on the bandwagon does not come cheap for landlords, especially if they just want to rent a room out occasionally.

The city council this year decided to slug property owners $8086 to rent out a room or their home. This was introduced under changes to the city plan.

As part of the council’s enforcement of regulations governing party houses, most Airbnb hosts would have to apply for development permits to rent out their properties legally.

Originally published as Airbnb spike hurts long-term renters on Gold Coast