Is Airbnb Profitable in Australia?

Airbnb has disrupted the travel industry, giving travelers cheaper and more bespoke alternatives to staying in hotels. It also reinvented how people invest in real estate, making it easier for ordinary people to get into the property rental business.

The platform operates in more than 190 countries, including Australia, and boasts 6.6 million unique properties listed in over 100,000 cities worldwide. Many Airbnb hosts join the community each year, and you also may be thinking about putting your house in Australia on Airbnb or even considering investing in an Airbnb property.

But before you do, it’s important to understand how much you could earn and whether it’s worth it. So, is Airbnb profitable in Australia? Let’s find out.

Is Airbnb Profitable in Australia?

The short answer is yes. With its thriving tourism industry, Australia offers many opportunities for short-term rental business. Currently, the Airbnb business in Australia is in an upward trend, and around 166,000 unique properties are hosted on the platform. Most of the Airbnb listings in Australia are in New South Wales, Victoria, and Queensland. 

According to Airbnb, Australian hosts average up to $3,000 a month. That allows them to pay off the mortgage and other household expenses, fund their family holidays, and secure their financial future.

Savvy homeowners and investors in Australia take advantage of Airbnb and its alternatives and turn their own homes into a source of extra income, and you can do it, too. Although running an STR property involves more responsibilities than renting it long-term, you can easily manage your business if you use vacation rental software like Hospitable.

Airbnb properties can generate more money than traditional renting because you can adjust your nightly rates according to seasonality, demand, holidays, local events, and other factors. This potential for higher income is the main reason that most people consider renting their homes and apartments short-term.

Another advantage of listing your property on Airbnb is the flexibility. It’s up to you to choose when your property is available for bookings so you can use it when you want. That means you can either make the most of a vacant holiday home for a certain time of the year or even make some money on a property you are still living in, renting out a spare bedroom.

But you should remember that not all properties yield the same results. The income you can earn from your Airbnb rental may differ greatly based on your location, the season, the type of your property and its popularity among guests, and the amenities you offer.

Factors affecting earnings

As with any investment, the location of your Airbnb property plays a crucial role in determining how much you can earn. An attractive location will draw potential guests and help ensure an ongoing flow of bookings. Homes and apartments in popular tourist destinations, central business districts, or near well-known attractions usually have higher demand and, as a result, higher potential earnings. For example, beachfront homes in coastal towns are trendy among travelers. So, if you’re considering buying a beach house, you may want to check out our list of the best coastal towns to buy property in Australia.

Although almost any type of property is suitable for Airbnb, entire homes and apartments typically generate more revenue than private rooms. While entire houses and apartments are in high demand on Airbnb, unique properties such as yurts or treehouses often attract higher rates due to their novelty.

Airbnb guests expect a welcoming and comfortable place to stay where they can relax. If you want to make more money from your Airbnb property, it’s important to decorate your property to make it more appealing and provide essential amenities and features that potential guests will appreciate. WiFi, clean and comfortable bedding, air conditioning, a washer, a dryer, and a good coffee maker are some value-adds you can offer your guests during their stay to enhance their experience.

It’s also important to research to find out what taxes you’ll need to pay as a host in Australia and consider local rules and regulations that govern using properties for short-term stays in your area because they’re constantly changing. Recently, state governments in Australia have announced changes to short-stay accommodation rules that limit the availability of some properties for short-term rentals. You may want to check out our blog post, where we share information about new Airbnb rules in Australia. 

If you want to maximize your income, you should list your property on Airbnb and other major booking platforms, such as Booking.com and Vrbo. A good idea is also to create your website to accept direct bookings and avoid paying expensive Airbnb hosting fees that hosts in Australia are charged per each booking completed on the platform.

You don’t need to hire a developer for that since Hospitable users can take advantage of our service, Hospitable Direct, and build direct booking websites using our professional, easy-to-customize templates. Most importantly, we partner with Google Vacation Rentals, and your website will appear on Google Travel and Google Maps, bringing huge exposure without high third-party fees.

Final Word

The STR industry in Australia continues to grow, offering excellent opportunities for property owners and real estate investors. With its breathtaking landscapes, numerous attractions and cultural events, economic stability, and accessible transportation, there is no doubt that Australia remains a thriving market in the vacation rental industry.

Owning an Airbnb is profitable in Australia now, and the long-term prospects for this market are also promising. And given the much stronger returns on investment, renting out your second property through Airbnb rather than the long-term rental market may seem like a no-brainer.

You may also want to check out our blog, where we share some tips on starting Airbnb in Australia and ensuring the long-term success of your vacation rental.