Canberra business operators have opposed the idea short-stay rentals are contributing to a rental crisis, saying the sector is creating local jobs and fuelling tourism.
One business owner says many short-stay rentals on platforms like Airbnb are increasing supply, rather than eating into the private long-term rental pool.
Recent data released by the Real Estate Institute of Australia found the number of short-stay listings had increased by 66 per cent in the year to the March quarter.
More detailed data shows the increase came from a low base, due to a slump in available short-stay listings during the COVID-19 pandemic.
Recent rise came from a COVID slump
Data provided to The Canberra Times by short-stay research company Airdna found there were 1539 short-stay properties in Canberra in January 2020.
Listings dropped to a low of 819 in February 2022 and have been climbing since. The most recent count found 1586 short-stay listings in Canberra during August 2023.
The recent increase reignited calls to regulate the short-stay market, with REIA president Hayden Groves saying the sector "has come under fire for eating into long-term rental housing and being a driving factor behind the rental crisis".
Dan White, founder and chief executive of Canberra-based Airbnb property management service Canbnb, rejected the idea.
Canbnb has about 175 properties on its books, many of which are owned by part-time residents, including government employees.
"Of our 175 listings, 73 per cent of our clients use the properties themselves, which means that if they weren't listed on short-term accommodation platforms they would be vacant," he said.
"So in that sense we're actually increasing the supply of accommodation in Canberra."
Owner turns to short-stay amid rising rates
For other owners, renting their home as short-stay accommodation has become a wise investment option.
Sonia Irwin owns a five-bedroom Airbnb property in Kambah and said it was her primary source of income.
She and her ex-partner tried to sell the house in 2022 and it was on the market for six months before they couldn't cope with the rising interest rates any longer.
"All of a sudden, a huge amount of value that we were putting into the house renovating it, was written off," Ms Irwin said.
They moved out and decided to turn it into an Airbnb. For Ms Irwin, it was simpler and much cheaper than trying to sell the home.
"I've got a friend who runs an Airbnb, and that's partly his super and partly like insurance money because he's a painter. So if he gets injured he's at least got some income coming through," she said.
Ms Irwin has hosted more than 35 families, some multi-generational and some with dogs, in her rental property. She said it was cheaper for them to stay in her home than in a hotel, which made them want to stay in Canberra for even longer.
"[Airbnbs] are encouraging more people into Canberra. It's bringing people out of the city into suburbs, to experience what it's like living here," Ms Irwin said.
She felt she was also contributing to Tuggeranong's local economy by recommending local eateries to all her guests and using local cleaning services for her Airbnb.
"Like Little Theo's, I cannot afford to eat there every week but if I have families [staying], the first thing I do is tell them there's a fantastic pizza shop down the street," Ms Irwin said.
Local businesses loving the extra attention
Ras Alam, owner of Spotless4U Cleaning Services, said he had noticed a hike in demand for short-stay cleaning jobs. Until 2022, he would have only one or two short-stay bookings each month, but this year he had between 20 and 30.
"We are pretty much fully packed," Mr Alam said.
He said he expected that number to grow even further. One of his clients recently asked about Mr Alam's capacity to take on more cleaning jobs.
"But we had a meeting about him converting a few more properties to Airbnbs as his friends and family are asking him to help them," he said.
"The reason is they're getting around 30 to 40 per cent more rental income."
Mr Alam said as more people start running Airbnbs and require his cleaning services, he would need to hire and train more people.
"I'm pretty excited to grow my business," he said.
Short-stay offers a 'pressure release'
Mr White said growth in Canberra's short-stay listings had been "quite steady", increasing from about 750 listings five years ago.
Canbnb currently employs 50 staff members who clean and re-stock the properties, manage the business and communicate with guests and clients.
Their busiest night of the year?
"Spilt Milk, the music festival," Mr White said.
"When every hotel room in Canberra is booked out and every short-term accommodation, every Airbnb is booked out as well.
"In that sense we provide a pressure release for the hotel industry, giving extra accommodation to the ACT which means more tourists can come."
Short-stay rentals, excluding rooms within a private home, made up 0.6 per cent of the ACT's housing supply in the March quarter, REIA found.
A relatively small number, Mr White said, compared to the 6.6 per cent of unoccupied dwellings at the 2021 census according to the Australian Bureau of Statistics.
The 'Uber' of accommodation
There were mixed opinions on the streets of Braddon, which had the second-highest number of short-stay properties behind the city during the March quarter.
Georgia Scott and Abi Wells were visiting from Melbourne and had opted for a two-bedroom Airbnb over a hotel room.
"Basically for the exact same price we were about to spend on a hotel we actually have a lush Airbnb. It's like a Barbie dream house, it's all pink," Ms Scott said.
Canberra resident Paul Hartigan said based on his experiences he wouldn't use Airbnb again, except for the "rare occasions" he would stay somewhere for a long time.
"They're difficult to get into and out of because there's security surrounding them, parking's often difficult, there's nobody there to fix things," he said.
Greg Walsh was visiting Canberra on a mountain biking trip and said if he had made the booking himself, it would have been an Airbnb.
"I suppose it's like the Uber for the taxi world ... the competition has been good for the consumer," he said.
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