The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian realtor yesterday said activity in the short-term rental market had increased by 35 per cent during the 2012 third quarter when compared to the first half, telling Tribune Business this market could be “more lucrative” than its long-term counterpart.

Matt Sweeting, of Bahama Islands Realty, said he had generated $80,000 worth of activity by closing 10-15 short-term residential rentals, normally lasting for one-two months, on behalf of corporate clients needing to bring in specialised workers.

Describing the short-term residential rental market’s potential as “very large”, Mr Sweeting said it potentially offered realtors and landlords “immediate” and “lucrative” pay back, with often less work required to close the deal.

And he encouraged Bahamian landlords to market their properties for both short and long-term leases, saying this exposed them to a wider tenant pool and, in effect, two different markets.

Apart from foreign technical specialists brought in to work on ZNS’s digital upgrades, Mr Sweeting said he had also spent the 2012 third quarter finding accommodation for workers from Burmeister & Wain, the Danish company that services the Bahamas Electricity Corporation’s (BEC) turbine generators, plus several construction companies.

“Compared to the first quarter and second quarter, I’d say there’s been a 35 pert cent increase in activity,” Mr Sweeting told Tribune Business of the short-term rentals market.

“I recently ran my rental numbers over the last couple months, as the short term rental market is having tonnes of activity. I have closed over $80,000 in mostly short-term rentals, and had 10-15 in the last three months.”

He added that “every time I’ve done business with” Burmeister & Wain, he was arranging three-four rentals lasting typically one to two months.

On current short-term rental activity levels, Mr Sweeting said: “I think this is an indication of an increase. There’s definitely a lot more activity. The signs are already out there, and I’m getting twice as many calls.

“Forty-five days, a month-and-a-half ago, I could track a pick up a in business.”

Mr Sweeting said the short-term rentals market was especially strong in western New Providence, with Cable Beach a favourite due to the proximity of key areas nearby. Gated communities such as Saffron Hill were also attractive to tenants, due to the added security and presence of amenities, too.

Asked about the market’s potential size, Mr Sweeting told Tribune Business: “It’s very large. As opposed to sales that may take three to six months to close, on short-term rentals the payback is immediate and the work involved is less.

“There’s a lot less running behind the deals, making sure they come to a close.”

Mr Sweeting said realtor commissions on short-term rentals were typically 10-15 per cent, and he added: “It’s a bit more lucrative for landlords themselves, as people are prepared to pay a little more. If compared to a hotel stay, there’s no comparison.”

Among the construction companies Mr Sweeting has recently worked for are S & G, DMA International and Catstone.

He said: “Over the last couple of months, almost every construction company has been bringing in foreign workers to do specialist work on their projects, and there are so many construction projects going on.”

Urging landlords to cast their net wider for potential residential tenants, Mr Sweeting suggested they target both long-term and short-term renters.

“What it does is increase the buyer pool,” he explained to Tribune Business. “As opposed to only advertising your property long-term, you open it to many possibilities by making it open to short-term rentals. You’ve got multiple listing markets that you were not advertising to before. It’s a large opportunity, and in some cases it can be more lucrative than long-term rentals.”