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Setting the Standard

As the short-term rental industry matures, guests are becoming discerning travellers, demanding more than just a place to lay their heads. CM Homestay understands the changing landscape, and to consistently ensure exceptional stays for guests, we have established a "Listing Readiness Checklist" that every Airbnb property under our management is required to meet. If you are planning to self-manage your property, we recommend you consider these standards to ensure your guests have a great stay.

Let's dive into the details of these standards and ensure your property stands out in a crowded market.

Listing Readiness Checklist

CM Homestay has curated a standard list of amenities that all properties must have to guarantee that your guests enjoy a comfortable and delightful stay. Beyond amenities, we encourage owners to furnish their properties with home decor and personal touches to make the guests feel settled at home.

• Entire Home - Tested and Approved Smoke Detectors, Smart Locks and Security Systems
• Kitchen - Cutlery, Glassware & Crockery, Microwave, Refrigerator, Dishwasher or Dish Rack, Rubbish & Recycling Bins, Toaster, Kettle, Oven Mitts, Oven Tray, Cooking Utensils, Essential Cookware, Knife Set, Tea Towels
• Bedrooms - Bed Linen & Inserts, Pillows & Throws, Mattress, Spare Bedding, Bed Frame, Bedside Table/Nightstand & Lamps, Portable Fan/Heater (if no A/C), Closet or Drawers, Coat Hangers
• Living - Dining Table & Chairs, Coffee Table, Couch & Throw Pillows, Smart TV, WiFi Modem or Router, Placemats & Pads, Lamp
• Bathrooms - Towel Rack or Wall Hook, Waste Bin, Mirror, Toilet Brush, Hair Dryer
• Laundry - Laundry Basket, Washing Machine, Dryer or Drying Rack, Iron & Ironing Board, Waste Bin
• Other - First Aid Kit, Fire Extinguisher, Vacuum Cleaner, Mop & Bucket, Broom & Dustpan

Home Sweet Home

At CM Homestay, we're dedicated to delivering top-notch experiences to our guests. To achieve this, owners must ensure their property meets our minimum property standards, including everything from amenities to fixtures and safety regulations. Once the property is under our management, we kickstart the journey with an initial clean and inspection. We also prioritize professional photography to showcase your property in the best light possible, and we are happy to connect you with our trusted partners. We recommend you consider the following when preparing your property for guests:

• Safety: Guests expect a safe property, free of hazards and dangers. We recommend having your property inspected by a licensed electrician and plumber to ensure all systems are safe and up to code.
• Durability: Your property will be used by many guests, so it is essential to furnish your property with durable furniture and fixtures. We recommend you avoid cheap furniture and fixtures that will not last, as replacement costs will quickly add up, and downtime will impact your earnings.
• Privacy: Guests expect a private property, free of unwanted intrusions. We recommend you remove all personal items from your property and secure any items you wish to keep. We also recommend you install window coverings to ensure privacy.

The Key to Convenience

No one likes the hassle of calling a locksmith. To ensure smooth check-ins, CM Homestay has a clear expectation that every property is securely fitted with a digital door lock, lockbox, or the use of a host to conduct a key handover. Where physical keys are necessary, we require a minimum of three sets of keys to be provided. We recommend you consider the following when setting up your key management system:

• Convenience: Guests expect easy access to your property, so it is crucial to reduce the friction of check-in. Less is more for a tired traveller.
• Security: Guests expect a secure property, so it is essential to have a secure system in place to manage keys and keep your property, and the guests inside, safe.
• Reliability: Guests must be able to get into your property at any time, so it is essential to have a reliable system in place to manage keys. Cheaper solutions are typically less reliable.

In all cases where the property can physically accommodate a digital door lock, we firmly recommend this option. Digital door locks are a convenient and secure way to provide guests with access to your property. They also allow you to remotely manage access to your property, which is especially useful if you are self-managing your property. While a larger upfront investment, digital door locks are a worthwhile investment that will save you time and money in the long run.

The Power of Connectivity

Wi-Fi has become more of a necessity than a luxury. That’s why CM Homestay highly recommends homeowners to set up Wi-Fi at their properties. Guests rely on Wi-Fi for work-related tasks, staying in touch with loved ones, and planning their trips. Installing Wi-Fi creates a more inviting and convenient space for your guests and keeps your property competitive with other listings in the area.

CM Homestay is lucky to have technology partners that can help you set up Wi-Fi at your property, and we would be happy to connect you with them. We recommend you consider the following when setting up Wi-Fi:

• Speed: Guests expect fast internet, so we recommend a minimum speed of 25 Mbps.
• Data: Guests use a lot of data, so we recommend unlimited data plans.
• Security: Guests expect secure internet, so we recommend a strong password and a guest network. Do not operate an open network.

Ready to Go?

At CM Homestay, our mission is to ensure your property is well-equipped and primed for success in the short-term rental market. We’re deeply committed to capturing earnings and satisfying guests, which is why our Listing Readiness Checklist is given top priority during the onboarding process. If your property is in its final stages of management preparation or you’d like more insights and support regarding CM Homestay’s Listing Readiness Checklist, please don’t hesitate to reach out.

An Overview of the Proposed Airbnb and Short-Term Rental Tax in Victoria

CM HOMESTAY supports housing initiatives, and the effectiveness of this levy will be assessed in the coming years. We advocate for thoughtful regulation that benefits both the industry and the community. Hosts play a crucial role in contributing to a positive future for the industry.

What is this state levy?

Effective January 1st, 2025, the recently announced Victorian levy will apply to all short-term rental properties, specifying a 7.5% tax on the total booking revenue. This concept is becoming increasingly familiar to the industry, with similar approaches already in place overseas.

The proposed levy will not limit the number of days a property can be available within the region. Although announced as temporary, it aims to address specific economic considerations, namely the Victorian housing crisis. However, it lacks sufficient detail on the administration and operational implementation of the scheme.

For example, will the tax be applied at a platform level (e.g., Airbnb) or on a self-reported basis? This question, along with many other concerns, must be better addressed before the proposed tax is implemented to remove ambiguity.

Victoria's peak tourism body has highlighted the potential negative impact on regional tourism in areas with scarce hotel alternatives. This concern prompts questions about how the tax will specifically impact regional areas within Victoria.

What are the implications of this levy?

While the tax poses an immediate challenge, our analysis indicates that, on average, properties affected by the levy may only see a modest rise in operational costs. The change should require minimal financial adjustments within the industry and could help address the short-term rental oversupply.

Nightly Rate Adjustment

Hosts will likely respond by adjusting their nightly rate to compensate for the incurred levy or by implementing an additional accommodation fee for guests.

For example, two nights at a Melbourne apartment at $480.00 would increase by $36.00, bringing the total to $516.00.

Market Equilibrium Adjustment

A recent Market Report indicates a general oversupply in Victoria's short-term rental industry this year, causing statewide average booking revenue to drop in 2023.

This levy could be a significant catalyst in steering the market toward equilibrium, as properties may switch to long-term renting as supply and demand correct.

For example, Melbourne's short-term rental supply increased by almost 40% this year, and the average nightly rate in the city decreased by over 10%.

What happens now?

Hosts must stay informed and contribute to the industry's future by working with key industry representatives and adding their voices to the conversation.

Supporting and contributing to the Australian Short-Term Rental Association (ASTRA) will further the industry's ability to communicate effectively with policymakers and ensure fair and smooth implementation of the levy and future legislation.

It is paramount that hosts remain resilient and embrace the evolving market landscape while continuing to provide professional and authentic accommodation and travel experiences.

CM HOMESTAY is here to help you ensure a smooth transition for property owners and guests alike during these times of change. We are here for the long run and remain committed to providing exceptional property management and supporting the evolution of the short-term rental industry.

That's all for now. We are keeping an eye on this and will share any updates in future blog posts. If you have any questions, don't hesitate to get in touch with our friendly team; we would be happy to help.