When choosing the right rental strategy, landlords need to weigh profitability, location, property type, and market demand. Both holiday rentals and long-term leases can deliver strong results, but the best option depends on your property’s characteristics and your financial goals.
Profitability
Holiday rentals often generate higher nightly rates, especially in popular tourist destinations. For instance, a beachfront apartment in the Gold Coast can command premium prices during peak seasons. However, managing this type of rental strategy comes with added costs such as cleaning, furnishing, and frequent advertising.
Long-term leases, by contrast, provide stable and predictable income. While monthly rent may be lower compared to short-term holiday rates, you’ll typically face fewer expenses related to tenant turnover and property management. For many investors, a steady rental strategy offers peace of mind and reliable cash flow.
Key factors to consider
Location: Properties in high-traffic tourist areas tend to perform better under a short-term rental strategy. Suburban or city-centre homes are usually more profitable with long-term leases thanks to consistent tenant demand.
Property Type: Unique or high-maintenance homes often attract short-stay guests, while simpler houses or apartments appeal to long-term tenants. Choosing a rental strategy that aligns with your property type can maximise returns.
Market Demand: Understanding local trends is essential. Holiday rentals thrive in tourism hotspots, whereas long-term rentals provide steady demand in residential areas. Research your local market before committing to a rental strategy.
Management tips
If you’re considering a short-term rental strategy, focus on professional photography and detailed listings to attract guests. Quick communication and great reviews are key to standing out. Many owners also find value in using a property manager to handle guest turnover and maintenance.
For long-term leases, prioritise tenant screening and regular inspections. A solid lease agreement and proactive maintenance plan will help protect your investment and maintain tenant satisfaction.
Choosing the right rental strategy
Your best rental strategy depends on your goals. Holiday rentals can deliver impressive returns during peak seasons, while long-term leases offer steady income and reduced management effort. Take time to evaluate your property’s strengths, location, and how much time you want to commit to management before deciding which approach works best for you. Looking to make your property work harder for you? Get in touch with our team to learn how we can support your long-term property management needs.
These articles are general in nature and are not financial or legal advice. Please consult your professional financial or legal advisors before making any decisions.