If a business wants to lease your property and run it as short-stay or corporate accommodation, you're effectively choosing a tenant who will look after your asset for a year or more. It's worth taking the time to assess them properly.

Here's what to look for, and the questions to ask. As always, this is general information. Get your own legal advice on any lease before you sign.

1. A track record you can check

Ask how long the business has been operating and how many properties it currently runs. Bigger isn't automatically better. What matters is that the operator is honest about where they're at and can show you how they work.

Good signs include:

being able to see one of their existing properties
a clear explanation of how they find guests and fill quiet periods
a named person you'll deal with
straightforward answers to direct questions

Be cautious of anyone who makes big promises about income or can't explain how they'll pay rent in a slow month.

2. Clear, fair lease terms

The lease protects you, so read it carefully and have a lawyer review it. Check:

Term. How long is the lease? Is there an option to renew?
Rent. How much, how often, and on what date? How will rent be reviewed during the term?
Permitted use. Does the lease clearly allow short-stay letting, and require the operator to follow your building's by-laws?
Outgoings. Who pays for utilities, internet, strata levies, rates and insurance?
Maintenance. Who is responsible for which repairs, and how are they reported?
Furniture. Will the operator furnish the property, and what happens to the furniture at the end?
End of lease. What condition must the property be returned in?

3. A plan for looking after your property

Ask exactly how the operator will care for the home:

Is the property professionally cleaned after every stay?
How often is it inspected, and will you get updates?
How quickly are small repairs handled?
How do they deal with damage caused by guests?

A property that's cleaned and checked after every guest can stay in better shape than in a typical tenancy. That only happens if the operator has a real system for it. Read more about this in keeping your property in top condition.

4. Respect for the building and neighbours

In apartment buildings, guests share lifts, corridors, parking and rubbish areas with residents. A good operator will:

know and follow the building's by-laws
explain check-in, access and noise rules to every guest
deal with any complaints quickly
be willing to talk to the strata manager or committee

If your property is in a strata scheme, check the by-laws before you go any further. Our guide to strata by-laws and landlord consent explains how.

5. Insurance

Ask what insurance the operator holds for their business, and talk to your own insurer about how the property will be used. Make sure the lease is clear about who is responsible for insuring what.

6. Local knowledge and easy contact

An operator based in Adelaide can get to your property quickly, knows the city and the buildings, and is easier to reach when you have a question. You should have one point of contact, not a call centre.

7. Paying a fair rent

A short-stay operator can often pay more than a typical long-term tenant, because the property can earn more from short-stay guests. That's a real benefit for landlords: a higher rental yield with a fixed rent every month. But the offer should be realistic. An operator who offers far more than the property can sustainably earn may struggle to keep paying.

Questions to ask, in one list

How long have you been operating, and how many properties do you run?
Can I see one of your current properties?
What lease term and rent are you offering? How and when is rent paid?
How will the property be cleaned, inspected and maintained?
How do you handle guest behaviour, building rules and complaints?
What insurance do you hold?
Who will be my point of contact?
What condition will the property be returned in at the end?

About CozyStayz

We're a small local team running our own Adelaide CBD stays. We lease on terms of 12 months or more, clean, check and maintain the property between every stay, and give you one point of contact. We're happy to answer every question on the list above.

Request a rent offer to get started, or read guaranteed rent vs a regular tenancy to compare your options.

What to Look for in a Long-Term Short-Stay Leaseholder