Fees
Our Fees
From the outset, Edinburgh Short Stays has committed to a high level of service, delivered through quality systems and processes by professionals who genuinely care about your financial success – all at a competitive price.
Our fees are structured as follows:
Onboarding fee - this covers photography, creation and maintenance of online listings across all booking platforms, regular reviews of pricing and market conditions, initial inspection and inventory and regular checking of chattels and overall property condition.
Management fee - a percentage of the rental charged to the guest, covering our ongoing management of your Short Stay property, co-ordination of bookings and enquiries across all channels, guest liaison and hosting.
Cleaning fee – as invoiced. Note that cleaning is on-charged to guests and included in the total booking price from which we deduct our Management Fee. To ensure properties are priced for maximum occupancy and income, cleaning charges paid by guests may not cover the full clean necessary to return the property to the required “hotel standard”. In the event additional cleaning is required, the associated costs will be deducted from the Owner’s income after deduction of all other fees. No additional fees or commissions will be charged by Edinburgh Short Stays on these costs.
Initial property spring clean to prepare the property for renting, arranged upon signing our agreement – as invoiced.
Contact us for full details of our Short Stays management pricing structure.
FAQs
What are the insurance implications of becoming a short stay accommodation provider?
Before we welcome your first guest, we recommend you contact your insurer to let them know your plans to rent out the property on a short stay basis. You can then check you have the right type of policy and level of cover.
If your tenant has an accident in your property, they are covered by ACC even if they are a tourist visiting New Zealand. All Airbnb hosts are offered automatic Host Protection Insurance to cover guests getting hurt or causing property damage and there’s also a Host Guarantee to cover accidental damage to the property and its contents. As with all policies, there are exclusions and expectations, so it’s recommended you read the fine print. Airbnb’s insurance should not replace your general home and contents policies and simply serves to provide added protection.
Will my bank need to be advised?
If you obtained finance from a bank to purchase a property and the original intention was to use the property for residential purposes, your bank’s terms and conditions may include a requirement that you advise them if your use of the property changes to short term accommodation. If a bank was to discover that their terms and conditions had been breached in this way, they may choose to demand early repayment of the funds advanced or seek additional equity to meet their lending policy.
Are there tax implications?
New Zealand’s tax laws require that income earned in a business which is carried-on for profit is subject to tax. Income earned by providing short term accommodation through platforms such as Airbnb is no exception.
Additionally, providing short term accommodation is a taxable supply for New Zealand GST purposes. GST registration can occur either voluntarily or is required if taxable supplies exceed (or are expected to exceed) $60,000 in any 12 month period. You may wish to consult an accountant to discuss the full implications of GST registration.
Will my Council rates rise under a short stay model?
The Dunedin City Council is investigating the introduction of a new rating category for properties being rented out to visitors via portals such as Airbnb and Booking.com, however the proposed changes are yet to be refined and introduced.
The possible changes may see properties categorised as either “residential”, “mixed use” (a new category) or “commercial” depending on the number of nights the property is booked per year. Other Councils, such as the Queenstown Lakes District Council, already have similar systems in place. At the time of writing, we are unaware of any plans by the Central Otago District Council to introduce such a system.
What kind of properties are best suited to the short stay market?
A wide variety of properties will appeal to the wide variety of guests looking to visit our region, however those properties that have the edge in terms of location and presentation will always fare better than those in less desirable locations or those that are not presented to a high standard. “Themed” properties or those with a point of difference can also attract more interest. Our free consultation and assessment will include our recommendations on any enhancements required to maximise the appeal of your property to the short stay market.
What kind of occupancy rate can I expect?
Occupancy rates can vary seasonally and will be influenced by regional events and other factors. Seasonal fluctuations may see lower room rates requested in times of lower demand, although this will be very much dependant on the location of your property and the number of competing properties available via the various portals at any given time. We’ll maintain regular contact with you to ensure you remain fully informed on any changes in the market. Our aim is to achieve maximum occupancy across all of our short-stay properties and we acknowledge that achieving this will require ongoing communication with our owners and regular reviews of market conditions.
Is there a set-up fee to list my property?
Our annual marketing fee covers our initial photo shoot, creation of online listings across all of our booking platforms, an appraisal of likely returns and current marketing conditions, our initial inspection and completion of the chattel list, completion of the compendium information for your property and all required advice and guidance during the set-up phase. Photos and listings are refreshed at least annually and chattels, inventory, compendium information and all other details held for your property are checked on an ongoing basis for accuracy. Our property owners and guests are at the forefront of everything we do and we realise that our success as a brand is only measured through your success. So, we focus on showing your valuable asset in the best light from the get-go.
Who pays for cleaning and linen changes?
Cleaning and linen charges are on-charged to guests and included in the total booking price from which we deduct our Management Fee. To ensure properties are priced for maximum occupancy and income, cleaning charges paid by guests may not cover the full clean necessary to return the property to the required “hotel standard”. In the event additional cleaning is required, the associated costs will be deducted from your income after deduction of all other fees.
What are the benefits of short stay rentals?
In addition to the obvious opportunity to increase the income achieved for your investment property, offering it to the short stay market also ensures that regular inspections and cleaning are taking place and that any required maintenance is addressed on a timely basis. The regular turnover of guests means that you won’t be stuck with any nightmare tenants, and the use of portals enabling guests to be reviewed means that they really do want to maintain a good relationship, so are less likely to cause problems. Not to mention you the owner having the freedom to use your property when needed.
What if I have any other queries or concerns?
We’re here to help. We know that the Short Stay accommodation business requires the provision of not only an exceptional product but also an outstanding level of service, and that’s what we’re here to provide. If at any time you need to seek answers to questions relating to our service or are concerned about your property or guests, call us on 021 676 211 or email shortstays@edinburgh.co.nz
