Short-term rental (STR) properties — Airbnb, Stayz, and direct holiday lets — promise higher yields than long-term rentals (LTR) but carry materially higher costs and operational complexity. The headline numbers can be impressive: 2-3x gross revenue per year over LTR isn't unusual in tourist markets. The net picture is much closer once you account for platform commissions, cleaning, supplies, higher insurance, vacancy, and your own time.

The big variables: occupancy (% of nights booked — 50-70% for typical Australian markets, 80%+ in alpine peak), nightly rate (compare to AirDNA or platform research), platform & management fees (Airbnb 14-15%, Stayz 15%, full property managers 20-30%), and ongoing costs (rates, insurance, internet, utilities, supplies, gardening — typically 1.5-3% of property value annually for STR vs 0.5-1.5% for LTR). The calculator above lets you tweak each.

Beyond economics, planning compliance matters. NSW has a state-level register and a 180-day cap in some council areas. Victoria introduced a 7.5% short-stay levy from 1 January 2025. Many local councils require change-of-use approval for STR — running an unregistered Airbnb can attract substantial fines. Strata buildings increasingly ban STR via by-laws. Check the specific local rules and any body corporate restrictions before buying for STR. For long-term yield comparison see our Rental Yield Calculator.