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A government worker’s side hustle: ‘Airbnb and property rentals provide me with reliable passive income’


Key Points
  • An additional $5,000 was added to the Venus Bay property Cornejo acquired from someone who used to lease it via Airbnb, making it easy to continue the listing.
  • The decision to invest in property came after Cornejo parked her money on term deposit and realised that it did not retain its value.
  • Rental yield and capital growth provide a source of equity in case you want to grow your property portfolio in the future.
MP JEN CORNEJO image

The short-term rental industry remains to be promising in Australia, even after the pandemic. Data compiled by PriceLabs says, Airbnb has seen a 25% increase in property listings reaching 166,000 as of June 2023.
Airbnb side hustle since 2018
This is why Jen Cornejo, a full-time public servant decided to lease out her Venus Bay beach property to Airbnb. It has been her side hustle since 2018. Cornejo considers it a reliable source of passive income, particularly as she is an empty nester.
“When I ran into some funds in 2017, I realised that I was spending it on things that I couldn’t remember. I decided to put in on term deposit for a year. Soon after, I felt that my money’s value was not retained so I figured, I better invest this wisely,” Cornejo says.
With a mix of short-term and long-term rentals, Cornejo’s three properties are all located in Victoria. Upon the recommendation from her accountant, she bought a house in Frankston. It ticked a few boxes that were a perfect fit for a long-term lease.

These include a train line near the property, with lots of development happening. In addition, there are good schools in the area. As for her investment property in Kingsville, it is closer to the Central Business District (CBD) in Melbourne.

 

Advice for those who want to get into property investments

Cornejo says she has been lucky with her tenants for both for the Airbnb and her long-term rentals for being respectful with her property. Also, going into investing in property involves serious money so Cornejo offers this advice. 

Take your time. Do your due diligence. Talk to your friends who have investment property portfolios. Also, seek advice from professionals – it may be a financial advisor or your accountant.

Jen Cornejo, landlord and Airbnb listing owner

“You need to understand your current finances and find out whether you are in a position to be able to service the loan comfortably. In terms of selecting the location, do your research.”
When it comes to mapping out the pros and cons of short-term rentals, according to Cornejo, the advantages are:
Flexibility – the property owner can control the days and weeks when the property can be rented out and when they can have it for personal use.
Profitable compared to long-term rental – this is the case when the property is leased during a good part of the year.
Rental pays for the upkeep of the property and other dues – the rental fees contribute to repairs needed, such as the wear and tear of furniture, among others.
The disadvantages include:
Interest rates dampen spending – noting the drop in Airbnb booking compared to pre-COVID period, people are trying to watch their spending which includes spending on holiday vacations.

Permits vary according to states and territories – luckily for Victoria, there’s no need to register the property. But it’s required to have the following types of insurance: short-term rental insurance, landlord insurance and building insurance.



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