Why More Landlords Are Turning Their Backs on Short-Stay Rentals

Short-stay rentals can be extremely attractive. They offered flexibility, higher potential yield, and the excitement of a booming travel market.

But for many landlords, the increasingly restrictive legislative landscape and growing competition has made it more complex for investor to manage.

Furthermore, rising management pressure, increasing costs, and new tax changes in Victoria are prompting many investors to reconsider. A growing number are converting their short-stay properties back into fully furnished, long-term rentals. Here’s why.

Why It’s Worth Rethinking Your Strategy
Many landlords are making the switch for these key reasons:

• Reliable, Consistent Income
  Long-term tenants typically sign a 12-month leases. This means:
  – Regular rent payments
  – Fewer gaps between tenancies
  – Greater financial stability
  
• Reduced Vacancy Risk
  A well-presented, furnished long-term rental tends to stay occupied year-round. In contrast, short-stay properties often experience seasonal slowdowns and unpredictable booking gaps.
  
• Lower Management Demands
  Running a short-stay property takes time and energy. You’re managing:
  – Guest enquiries and bookings
  – Check-ins and check-outs
  – Frequent cleaning and linen changes
  – Restocking everyday essentials
  A long-term lease dramatically reduces these tasks, while still allowing you to offer a furnished, move-in-ready home.
  
• Lower Operating Costs
  A long-term lease excuse the landlord from most operation cost such as cleaning, utilities, internet and landscaping. Furthermore, the operation demand from a property manager is significantly reduced. Both helps lower the cost required to maintain the property for then landlord.

The New Victorian Short Stay Levy
From 1 January 2025, the Victorian Government will introduce a new Short Stay Levy. This tax will apply to short-term rentals, further reducing profitability and adding another layer of complexity to short-stay investing.

What We Do

If your investment property feels more like a burden than a benefit, we can help.

We take the time to understand your current rental setup and talk through what’s working — and what’s not. Together, we’ll look at the financial pros and cons of short-stay versus traditional leasing, taking into account your property type, location, and long-term goals. We’ll also help you navigate how upcoming policy changes, like the Short Stay Levy, could affect your returns.

From there, we’ll help you build a plan that aligns with your goals for the property and your personal and financial circumstances.

Let’s Talk

We offer free 15-minute, no-obligation chats to help you explore your options. Whether you’re ready to make a change or just want to understand the market better, we’re here to support you.

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