Apartment Specialists Podcast No: 74
What are the benefits of buying Auckland apartments that are in hotel leases? This podcast gives you the answer
Good day. My name’s Andrew Murray from The Apartment Specialists and today I’m talking about the benefits of having Auckland apartments in a hotel lease.
Now, there are five main benefits. The first thing is less wear and tear. Because you’ve got hotel guests or short term people staying in your apartment complex, that means you don’t have your general tenants, you don’t have your risks of having parties and all that kind of thing. You’re generally going to be having corporate tenants in there or ones staying for a very short period of time, so there’s less wear and tear.
Another one is damage. Now, you don’t have to pay for any damage, you don’t get caught out with tenants because under the hotel lease or the lease, they all cover any damage to the unit so the only thing you’re going to have pay for is if in a couple of years, it needs new carpet because of that general wear and tear, which is less anyway.
Thirdly is maintenance of the unit. Now, if you notice if you don’t clean a unit for a long period of time, you’re more likely to get things like flies which means you’re more likely to have to paint the unit or obviously more likely to get mold which destroys the paint and the furniture. Well, having it in a hotel lease means it’s constantly cleaned and maintained to the standard of the hotel so that also contributes to the condition of your apartment.
Now, I think the biggest one is the hands-off, as in you don’t have to do anything. You don’t have to deal with a property manager. You don’t have to worry about vacancies because let’s face it, there are times when tenants move out and over that Christmas period, it can be quite stressful because it’s hard to find tenants when everybody’s on holiday. So I think the biggest bonus is really the hands-off investment and a long term investment where your income, okay, it is a focus but maximising it isn’t so much; it’s more stress-free and that’s why it suits a lot of overseas owners.
That’s your benefits generally with buying Auckland apartments in hotel leases. Now, what you’ll find is generally, though, as you’ll see in my next podcasts, the downsides of being in a hotel lease. It’s something you really want to be aware of before you a, purchase or b, continue having your apartment in that lease.
Thank you, cheers.