Question

[Sue529]

I have been approached by a couple in Australia selling a system called the Air Cashflow system that teaches people to take a lease on a property and then airbnb the property. Apparently they have software that shows which areas are most popular to airbnb and legal lease templates etc also cleaning and maitenance apps. Has anyone heard of it or is anyone using it with any success? They are charging $5000. Nicole and Aaron Byerlee are the founders. 

[Aaron405]

Hi Lynette - It's a stretch to not have it all covered legally with hundreds of students and dozens of Real Estate agents as partners, Australia's top Real Estate lawyers on board etc. Plus after 20 years in business I'm not one to go and pick a dodgy and illegal business to promote. I don't think that is a great business plan.

Subleasing without correct paper work and without owners permission is not a good idea. Proven in the courts in WA and Victoria. However as long as the owner is aware and is ok with this set up and as long as the correct legal lease is signed then this is perfectly fine to go ahead with a short term rental model in this property. I am happy to put you in touch with our lawyers or you can use your own to double check this Lynette 🙂

Gold Coast is a great place for AirBnB. You don't need any permit in the majority of Surfers Paradise (zoned high density) However in the zoned Low density areas you do. The low density suburbs can be good for AirBnB, but tend to not have the same amount of occupancy, plus the chances of the council giving you that permit after spending thousands is low. Not worth it. Stick to legal AirBnB properties in high traffic areas, wheer you don't need a permit for a good profit.

We also have insurance for all our properties and give that to our students as well. We pioneered it with an insurance company, as when we started nobody had one (or a decent one at a decent price) so we worked hard with a underwritter and were able to educate them on what we do and created an awesome insurance specific for leasing, co-hosting, owning properties and having them on AirBnB. So people are triple covered with this insurance, owners insurance and also the AirBnB fund.

Hope that has helped claify some points for you Lynette. I know it is easy to call us dodgy when we have never met and it's easy to have an opinion based on your experiences, but it is always good to mastermind and keep an open mind as to what is possible. I'm sure if you met us you would know we are down to earth country couple that love to help people. Gladstone is a great place and I hope you do great with AirBnB going forward.

Please feel free to reach out personally if you have any further questions. All the best 🙂 

[Jodi69]

Hi @Sue0, I have also been investigating this system too and am not sure yet.  Not sure about the advice given on this forum though, a quick google on sub letting Australia returned this result 

https://www.tuv.org.au/advice/assignment-and-subletting/

It is certainly not illegal. Having said that council rules are another thing and look to be cracking down. 

Here is an excerpt..... 

"Your right to assign or sub-let

You cannot assign or sub-let without the landlord’s written consent. However, the landlord cannot unreasonably withhold their consent. If they do, you can apply to the Tribunal for an order that the consent of the landlord is not required."

These are also good articles..  

https://www.theage.com.au/national/victoria/airbnb-crackdown-looms-as-melbourne-soars-into-worlds-to...

https://www.google.com.au/amp/amp.abc.net.au/article/9505984

Anyway, hope this helps, would love to hear any thing else you have found out.

I'm also not sure about the network marketing (deckchairmillionaire) they are involved in (you can see when googling their name) ...

☺️

[Kathie21]

I suspect that any tribunal would judge that a landlord is quite reasonable in refusing to allow the property to be used for Airbnb, due to insurance issues and additional wear and tear on the property. 

[Aaron405]

Should always be the owners decision. Always check with them first, be up front and honest and sign correct lease documents. Yes. 

[Marie-Louise16]

Hi Everyone, I have joined this system (Aaron and Nicole's) and it is truly amazing. The amount of advice and knowledge from all group members is outstanding (we have a private Facebook group ).  You feel very supported on your learning journey and  I have learnt so much.  They are the most honourable and integrous people who have created a professional system that works and many people are active making it work.

Go check it out, you won't be disappointed.

[Robyn0]

Hi Marie

Can you please advise who you use for your insurance company as I am having serious trouble getting a company to take on building insurance

cheers Robyn 

[Jacob262]

Hi Robyn
There are a few providers in the market in Australia for short term rental insurance with reasonable pricing. We offer our owners access to a few different ones though we have had good claims experiences with BJS in the past. 
Kind Regards

Jacob

[Aaron405]

Thanks Marie-Louise we love our community and appreciate you. Thanks for the kind words. Hopefully see you on tonights call 🙂

[Edward353]

Hi Marie-Louise, I notice that you are in the system, are you able to tell me how much you have earned in the last 12 months?

---

[Aaron405]

Hey Jodi - Yes correct, it's perfectly legal - A quick Google search can show this. More than many decided to do on the forum 🙂

As long as you are up-front with the owner and they are aware of what you will be doing with the property and they sign a legal lease sighting that it will be used for short term leasing on AirBnB etc it is all fine. We worked with some of Australia's top property lawyers here in Australia to make sure we were all good to do this.

If you want to know more Jodi, please feel free to reach out personally. I am quite approachable and transparent. You don't like my DeckChairMillionaire Brand? Ha Ha - Fair enough, it's not for everyone, but I quite liked the name. We are all about helping people create a business that they can do from home so that they have the lifestyle as well as the income. I believe spending time with our kids is the most important thing we can do as parents, that's why I was so determined to find something myself and Nicole could do together around our two beautiful boys. For their whole lives now, we have worked from home with them. I am passionate about helping others do that. AirBnB is a great model that anyone can do. Our students are having great success.

Reach out any time and all the best with your endevours Jodi 🙂 

[Robin4]

@Sue529 @Kate710 @Vicki191 @Marie-Louise16 @Kathie21

Girls if I can offer one piece of advice, set yourselves up with an Excel spreadsheet or similar and compile a profit and loss statement for each month.....You will be amazed at how little you earn! Most hosts have a net earning rate of between -6 &11% after covering all expences!

Thanks to our Wellington New Zealand host @Ben I have taken his P&L statement and made a generic copy which I include here as a picture.......

Copy and paste this into your pictures and open in Paint or similar and put in your costs as they directly relate to your listing. 

When you get to the end and arrive at a figure you are actually making to put in your pocket you will realise that these marketting tools which keep on cropping up telling us how we can make millions are just a  lot of hot air. They are designed to make someone else rich....not you. Do not get involved with marketing strategies....do the figures for yourself and set your listing price accordingly.

I cannot offer you any better advice than that!

Cheers.....Rob 

[Helen3]

Great spreadsheet @Robin4 @Ben 

The only major failing I see with it, as with many other hosts, it doesn't account for the cost of time spent by the host. How much is it costing you in terms of your time to manage your listings, prepare them for occupation, manage any repairs, cleaners etc.

If hosts properly accounted for their time, they would be shocked at what this does to their net profit margins.

I'd also argue income tax should be listed as a direct cost as it is a cost for the individual rather than the business (unless you are set up as a limited company or similar).

[Robin4]

@Helen3

Well Helen it can if you put that cost into the boxes like 'cleaning', 'accounting', hosting tools. These are intangibles Helen and will vary from host to host. My situation looks very rosy and I actually have a net profit of 68% because I list on the property I live in and own outright.

I am retired and I do my own cleaning and I spend a few hours a day here on my computer not just making lofty statements here on the CC but attending to bookings across a couple of STR platforms.

I don't have to price a commercial rate into my hosting because....the fact that I make a profit is irrelevant, I have nothing better to do with my time! but as I said above most hosts would be shocked at, after filling in that P&L they would find they are making a single digit income at best and at worse are actually making a loss. 

I would suggest to every host that they copy that P&L and do their own calculations....I am sure they would be shocked!

Cheers......Rob

[Susan17]

@Robin4

Hi Rob. Sorry to interrupt, but I wanted to respond to your comment about the T&Cs other day, and didn't have time just then, so meant to come back to it later. But I couldn't find it and couldn't remember which tread it was on (I don't receive notifications when I'm tagged, so can't trace it that way either) I know its a long shot, but can you recall which thread it was?  🙂

[Robin4]

@Susan17 One of the incredible frustrations about the CC is once a post is accepted it disappears into the ether. We get maybe a 24 hour window to check on it but nothing more than that. It would be wonderful if we could archive our posts to be able to consult at times like this.

I do vaguely remember the thread but have no idea which thread or post it was and I have just been back as far as page 24 and could not see anything that rang a bell.

Sorry Susan, I am going to have to set up an archive folder of my own for what ever I contribute because this comes up a fair bit and it would be nice to quickly have past items available when needed. I would love to be more help but, sorry I can't.

I might try again tomorrow. The fact that I have hosted a large street dinner party today has addelled my brain a bit tonight. Susan I turned it on today, lovely grain fed  steak fillet, nice salads and Ade rose to the occasion and made pavlova rolls filled with whipped cream and passionfruit rolled in Pastacio nuts and served on a bed of Mango and Blackberries....of which we have heaps in the back yard at the moment!! Once again, we had a nice day, but I am not functioning at my best just now!

I will follow this up in the morning!

Cheers.....Rob