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Is AirBNB Right For You This Year

Make switching to short-term rental your New Year’s resolution for 2022, writes Stefan Nikolic, managing director of Zodiak Management.

By: Stefan Nikolic

1 January 2022

Becoming an Airbnb landlord could be a very wise move for you this year. The worst Covid-19 restrictions are now behind us, and we have the re-opening of international borders to look forward to this year – finally.

Firstly, Let's Talk About Demand

New Zealand has made headline news around the world with our response to Covid-19 for the past two years, so we are at the top of tourists’ list for places to visit as the world begins to return to normal. Many people will be eager to travel to a country that has a great reputation for Covid-19 response, and this will become a key guiding factor for tourists in coming years.

Global tourism has completely been put on hold for two years now, so the surge in demand for international travel will be enormous as people are finally able to go overseas. So many people I know cannot wait to see their family and friends in different countries, and finally take those long-awaited holidays to places they’ve always wanted to visit.

For Auckland investors, switching your property to short-term rental would mean you can start accepting guests at the entry point to New Zealand. Most international flights to New Zealand from all countries must land at Auckland Airport – you are literally at the mouth of the river.

Now Let's Talk About Supply

The past two years of Covid-19 have understandably meant that a lot of Airbnb landlords have left the market and locked in long-term tenants instead. The security of a signed tenancy agreement gave these landlords certainty at a time when this was greatly lacking, but this has resulted in a lack of Airbnb listings available this year.

With much less choice for guests than before Covid-19, nightly rates for accommodation will be higher than average. Furthermore, a lot of hotels have closed their doors for good recently, putting more pressure on New Zealand’s lack of accommodation supply that existed even before we closed our borders.

For those hotels that have switched to MIQ facilities in order to survive, there will most likely be some stigma associated for quite a while, even after they revert back to regular hotels. This means even less supply in a market that is already severely under-supplied.

If you are interested in taking advantage of the perfect storm in 2022, then please reach out to us at Zodiak Management to learn more about how short-term rental works and if it will work for your investment goals.

Stefan Nikolic is managing director at Zodiak Management, Auckland’s premier Airbnb management company. Having founded Zodiak over four years ago after struggling to find a short-term rental management company for his own Airbnb property, Stefan has become one of the leading experts in the industry. Visit our website zodiak.co.nz, phone 0800 333 325, or email [email protected]


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