Illawarra home-owners could earn a week's wages during Wollongong 2022, but some are sounding a note of caution before residents rush to cash in.
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A shortage of traditional accommodation options, such as hotels and motels, is leading to a boom in searches for short term rentals during the week-long event that is expected to draw hundreds of thousands of spectators.
According to Susan Wheeldon, Airbnb's country manager for Australia and New Zealand, demand for stays is "booming" with an "overwhelming" increase in searches.
Figures from the short-term rental site show that the average nightly cost of an entire home on Airbnb during the event is $255, and with guests booking on average for around four nights, home-owners could earn $920 by hosting - just shy of a week of pay for the median Australian worker.
"Hosting on Airbnb is a great way to help showcase Wollongong's beautiful natural surrounds and highlight the region to help make this important local event a success, while also creating an opportunity to earn extra income to combat the rising cost of living," Ms Wheeldon said.
One of those people looking to make a bit of extra income is Margaret Biggs.
Ms Biggs said she was looking forward to the upcoming event and welcoming visitors from around the globe. Knowing that there would be a shortage of hotel beds she considered the idea of renting out her home.
It was she received her home and contents insurance policy renewal, however, that Ms Biggs decided against leasing out her home.
"My home insurance has a clause in it that if I was to engage in that kind of activity, in other words, to profit from it, that my policy would be cancelled," she said.
Most home and contents insurance policies do not cover any claims arising from short-term accommodation, according to product comparison site Finder. In some cases, as soon as you make an income from a property, your home and contents policy will be void.
Mark Sleigh, general manager of Destination Wollongong cautioned that locals who wish to rent out their homes should do their due diligence first.
"My advice would be to make sure you have contacted local council, understand the regulations in the local area and then follow all of those requirements before you undertake that commitment," he said.
A Wollongong City Council spokesperson said there are specific requirements for short term rentals whcih are largely managed by the NSW government.
"All hosts must comply with the fire and safety requirements and agree to follow the code of conduct before their registration is completed," the spokesperson said.
Separate insurance policies are available to cover hosts who wish to rent out their homes and Airbnb offers hosts AirCover for free as part of hosting, which includes liability insurance and damage protection, among other protections.
Ms Biggs said any other locals wishing to lease their home should check the fine print.
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