Are short-term rentals a good idea?

Plans

Short-term rentals can be good income earners for you, as you generally charge more than you would for a long-term lease. However, you do need to be in a financial position to manage repayments between tenancies.

People relocating to a new city or town might look for short-term accommodation, and short-term rentals are also popular with holidaymakers wanting a home-like environment instead of a hotel. Find out what you need to do to prepare a property for rent.

Appraise your property’s potential as a short-term let

If renting your investment property short-term sounds like a good option, find a managing agent that specialises in this area and ask them to appraise your property’s potential as a short-term let. Hiring a property manager to take care of all the administration is one option, but you might also decide to manage the property yourself to save on management fees.

Short-term rentals are nearly always furnished, which increases their rental return and desirability. If you decide on renting your investment property short-term, go for a contemporary, minimalist and neutral look that is universally appealing – and be sure to have sufficient contents or landlord insurance in place.

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Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you. All applications are subject to Macquarie's standard credit approval criteria.