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The Future of Holiday Homes: Why Short-Term Holiday Rentals Are Booming in Australia

Introduction: The Growth of Short-Term Holiday Rentals

Short-term holiday rentals are reshaping the travel and property markets across Australia, offering travellers greater flexibility and unique stays, while providing property owners with higher rental yields than traditional long-term leasing.

In cities like Adelaide and coastal hotspots such as Broadbeach, demand for short-term rentals is surging as Australians embrace remote work, weekend getaways, and local tourism. Investors are also moving away from fixed-term leasing, opting for short-term rentals to enjoy higher income, greater control, and fewer tenancy restrictions.

So, what’s driving this trend, and how can property owners maximise their returns in this booming market?

View from living room to waterfront at Pelicans on Parade holiday rental in South Australia

Pelicans on Parade, 22 Britannia Parade. A peaceful waterfront escape managed by OC Short Stays. Contact Jacki Cornish for more info.

Why Travellers Prefer Short-Term Rentals Over Hotels

Short-term rentals have become the preferred choice for holidaymakers and business travellers, thanks to:

✔️ More Affordable for Families & Groups – Booking an entire house is often cheaper than multiple hotel rooms.
✔️ Privacy & Space – Guests enjoy their own kitchen, laundry, and living areas, unlike standard hotel rooms.
✔️ Local Experience – Stay in residential neighbourhoods and experience destinations like a local.
✔️ Pet-Friendly Options – Many holiday rentals welcome pets, unlike most hotels.
✔️ Work-Friendly Stays – Many properties offer high-speed Wi-Fi, workspaces, and longer-stay options, catering to remote professionals.

With more Australians opting for ‘workcations’ and extended stays, the appeal of short-term rentals is only increasing.

Outdoor deck and water views at Islander Escape holiday rental in Encounter Bay, South Australia

Relax by the water at Islander Escape, 15 Islander Drive. Managed by OC Short Stays. Contact Jacki Cornish for more info.

Why Property Owners Are Switching to Short-Term Rentals

More Australian property owners are turning their investments into short-term holiday rentals due to higher returns and greater flexibility.

Higher Rental Yields Than Long-Term Leasing

  • Short-term rentals can earn 20-50% more than traditional long-term leases.
  • Dynamic pricing allows for higher rates during peak seasons.
  • No locked-in lease agreements mean property owners can adjust pricing based on demand.

More Control & Flexibility

  • Owners can block out dates for personal use.
  • Regular cleaning between guests helps maintain the property’s condition.
  • Avoids the legal complexities of long-term tenancies, including eviction laws and lease disputes.

Growing Tourism & Local Travel Demand

  • Domestic travel and staycations have increased, boosting occupancy rates year-round.
  • Major events, festivals, and sporting fixtures create seasonal spikes in demand.
  • Travellers are seeking unique, home-style stays over standard hotels.

For investors, short-term rentals provide higher income, fewer restrictions, and a growing guest market.

Modern holiday rental Vista Del Puente with sun deck and garden at 3 Riverside Drive, South Australia

Vista Del Puente, 3 Riverside DriveA modern coastal getaway managed by OC Short Stays. Contact Jacki Cornish for more info.

Trends Shaping the Future of Short-Term Rentals

Remote Work & Extended Stays

  • More Australians are working remotely, leading to longer bookings in short-term rentals.
  • Properties with dedicated workspaces, strong internet, and peaceful surroundings are in high demand.

Beyond Airbnb: The Rise of Alternative Booking Platforms

  • While Airbnb dominates, platforms like Stayz, VRBO, and Booking.com are gaining traction.
  • Many property owners are setting up direct booking websites to increase profits and reduce commission fees.

Sustainability & Eco-Friendly Stays

  • Travellers are actively seeking eco-friendly accommodations, such as solar-powered homes, rainwater collection systems, and plastic-free amenities.
  • Properties promoting sustainability and responsible tourism are more attractive to modern travellers.

Property owners who align with these trends will see higher occupancy and increased earnings.

OC Short Stays vs. Airbnb, VRBO, Stayz, and Booking.com

Many Australian property owners face a key decision: Should they self-manage on Airbnb, or hire a professional short-term rental management service like OC Short Stays?

Here’s a comparison:

Feature OC Short Stays Airbnb VRBO Stayz Booking.com
Property Management ✅ Full-service ❌ Self-managed ❌ Self-managed ❌ Self-managed ❌ Self-managed
Guest Screening ✅ Strict checks ❌ Limited ❌ Limited ❌ Limited ❌ Limited
Pricing Optimisation ✅ Dynamic pricing ✅ Manual adjustments needed ✅ Manual adjustments needed ✅ Manual adjustments needed ✅ Manual adjustments needed
Maintenance & Cleaning ✅ Managed by professionals ❌ Owner responsible ❌ Owner responsible ❌ Owner responsible ❌ Owner responsible
Platform Fees ✅ Transparent ❌ 3-15% per booking ❌ 5-15% per booking ❌ 5-15% per booking ❌ 15%+ per booking

 

Why Choose OC Short Stays?

 

Mobile view of OC Short Stays homepage with holiday rental search bar

✔️Hassle-Free Management – No need to handle guest communication, cleaning, or pricing.
✔️ Higher Occupancy & Revenue – Professional marketing ensures maximum bookings.
✔️ Better Guest Screening – Reduces risk of property damage and issues.
✔️ Multi-Platform Visibility – Listings appear on multiple booking sites for greater exposure.

For property owners wanting stress-free, high-return rentals, OC Short Stays is the best choice.

How to Set Up a Profitable Short-Term Rental

1. Research Your Market

  • Check local pricing trends, occupancy rates, and seasonal demand.

2. Prepare Your Property for Guests

  • Offer modern furnishings, including quality beds and linen, fast Wi-Fi, and pet-friendly features.

3. List on Multiple Platforms

4. Provide an Excellent Guest Experience

  • Ensure seamless check-in, local travel guides, and top-tier cleanliness.

5. Work with a Professional Property Manager

  • A company like OC Short Stays handles pricing, guest relations, and maintenance, maximising profits.

By following these steps, property owners can increase their rental income with minimal effort.

Why OC Short Stays is Australia’s Leading Short-Term Rental Agency

Mobile booking view of OC Short Stays platform showing property listings with filters

OC Short Stays specialises in high-performance holiday rental management, ensuring property owners earn more while doing less.

What Sets OC Short Stays Apart?

✔️ Data-Driven Pricing – Maximises rental yield.
✔️ Full-Service Management – Handles marketing, guest bookings, and cleaning.

✔️ Professional Hosts: Managing a small no. of properties each (Personally managing a small, dedicated portfolio).
✔️ Higher Occupancy Rates – Professional strategies ensure consistent bookings.
✔️ Property Maintenance & Support – Keeps homes in top condition.

For property investors looking for a high-return, stress-free rental business, OC Short Stays is the go-to choice in Australia.

Final Thoughts:  What the Future Holds for Holiday Homes in Australia

Short-term holiday rentals are booming across Australia, providing better stays for travellers and higher returns for property investors.

✔️ For travellers, they offer affordable, unique, and flexible accommodation.
✔️ For property owners, they provide higher earnings, market growth, and full control.

📞 Want to maximise your rental income without the hassle? Visit OC Short Stays or call 08 7070 6488 to get started today!

👉Related Blog Post: Explore our Top 5 Pet-Friendly Holiday Rentals for families, couples & solo travellers.

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