Short-term rental services such as Airbnb and Stayz can earn owners extra income, says Di Jones head of investment management, Bridgette Barker.

But Barker warns the agency has noticed an increase in the number of people who have been 'burnt' by the services.

Short-term rentals "are not for everyone", she said.

The rise of short-term letting and accommodation services, has seen many property owners looking at new ways they can earn extra income from their principal residence, which is often also their principal investment. 

Barker said increases in the costs of living are making the services ever more popular.
 
But Barker said less than 1 per cent of Di Jones' rent roll has been redirected into the short-term rental market in the past 12 months. 

The two properties were both apartments at Bondi Beach where "huge money" can be made in spring and summer, said Barker.

"One owner was renting for $800 per week, but through a short-term rental site he was getting three times as much," said Barker

“We also have some owners who are going to short-term rental of their property for six months while they head overseas and will then return it back to Di Jones to manage,” she said.
 
But Barker said there has been an increase demand in the past 12 months from people who have had bad experiences in the short-term rental market. 

“Major damage and noise which has upset neighbours has been a cause of concern for some owners utilising short-term rentals,” she said. 

Remain heavily involved in properties let through Airbnb or Stayz

"If you do decide to use Airbnb or Stayz, I believe you have to be heavily involved in the management of the property," said Barker, recommending that owners stay nearby if their properties are let on short-term rentals, so "you have more control over the management".

“Owners should also be mindful of their insurance obligations and the legislation that relates to the type of accommodation they are entering into if they can’t get someone out,” she said.

New short-term rental laws provide greater clarity

Recent changes to strata laws have opened an opportunity for those living in apartments to tap into short-term rentals.  

“Owners are revising their by-laws, which in many cases currently restrict rental leases to a minimum of three months," she said.
 
“While many apartment owners may not be using the services at the moment, amending by-laws to allow short-term rentals means that they can set the tone for their apartment block in the future."

“Airbnb and Stayz are not going away," said Barker. 

"Guidelines are now in place to protect both parties and it is important that owners, particularly of strata accommodation, are across their rights and responsibilities,” she said. 

Read Fair Trading's information for holiday and short-stay rentals.

Read Fair Trading's guidelines for the sharing economy.

Read more about the short-term rental market:

Rental contracts are being amended to restrict subletting tenants

Five trends that will shape property in 2017

Short-term stay laws under review