Short-Term Rental Management in Melbourne: A Comprehensive Guide
Short-term rental management in Melbourne has become a vital service in the city’s thriving property market. As investors seek higher returns, short-term rentals have emerged as a go-to strategy across Melbourne, a city known for its cultural events and tourist appeal, which exemplifies this trend.
From property owners seeking to maximise income to investors looking for passive returns, and even travellers seeking a home-like stay, everyone stands to benefit from effective short-term rental management in this dynamic city.
In 2023 alone, vacation rentals in Australia generated about USD 3.61 billion in revenue, a figure projected to grow to USD 5.45 billion by 2030. This boom is driven by the fact that short-term rentals often yield higher earnings than traditional long-term leases.
An average Airbnb host in Australia makes around AUD 48,500 per year, a level of income that in most cases outpaces a typical long-term rental’s returns. It’s no surprise, then, that many Melbourne property owners are exploring short term rentals as an attractive option for generating income. In this guide, we delve into Melbourne’s short stay rental market and explain how professional management can benefit property owners, investors, and travellers alike.
Melbourne's Booming Short-Term Rental Market
Melbourne is often regarded as Australia’s cultural capital, hosting numerous events, festivals, and international conferences throughout the year. This consistent lineup from the Australian Open to the Melbourne International Comedy Festival draws a steady stream of visitors and keeps demand for short-term accommodations high.
The average occupancy rate for Melbourne short term rentals stands around 66–67%, notably above the national average of ~61%. In practical terms, Melbourne attracts roughly 10.4 million domestic overnight travellers annually (not counting international visitors), ensuring a large pool of potential guests year-round.
Such demand translates into strong performance metrics for hosts. Melbourne’s average daily rates and revenues per night are robust, and they can spike during peak periods. For instance, during a major event like the 2024 Australian Grand Prix, some Melbourne hosts saw occupancy surge to 98%, with nightly rates about 148% higher than usual.
These peaks highlight how lucrative short-term rentals can be when one capitalizes on big events and seasonal tourism surges. Even in regular times, the city’s status as a culinary and arts hotspot means there is steady interest from both domestic and international visitors. In short, Melbourne’s short-term rental market is thriving, a fact that savvy property owners and investors are keen to leverage for higher returns.
Importantly, industry trends suggest this growth is not slowing down. High occupancy rates coupled with demand growth (estimated at 5.5% year-over-year in 2023 for short stays) point to an expanding opportunity for owners. And unlike a fixed long term lease, short-term rentals allow pricing flexibility to maximize earnings during peak seasons or events. Studies have shown that in high-demand locations, a well-managed short-term rental can earn significantly more annually than a long-term rental.
For example, one analysis of a two-bedroom property found a short-term rental earning AUD 67,500 per year versus only AUD 42,000 on a long term lease, a stark illustration of the income upside.
Of course, achieving such results in Melbourne’s competitive market requires more than just listing a property online; it requires strategic management, responsive hosting, and constant market awareness. This is where professional short-term rental management comes into play.
Why Property Owners and Investors Turn to Professional Management
Managing a short-term rental is rewarding but also resource intensive. Unlike a long-term tenancy that ticks over month to month, short-term rentals involve constant guest turnover and daily operational demands. Owners must handle frequent guest inquiries, adjust pricing for weekends and events, coordinate cleaning after every checkout, and address maintenance issues on the fly.
The workload can be significant; guests today expect quick responses and hotel-level service, so delayed replies or lapses in upkeep can lead to lost bookings or bad reviews. In fact, running a successful Airbnb or similar rental in Melbourne can feel like a full time job, which many property owners simply don’t have the time or expertise to do alone. This is a key reason why many owners and investors turn to professional management companies.
What does a short-term rental manager do? In essence, they handle every aspect of hosting on an owner’s behalf. Key responsibilities of a professional Melbourne short-term rental management service typically include:
Marketing & Listings: Creating an attractive listing and promoting the property on all major platforms (Airbnb, Booking.com, VRBO, etc.), complete with professional photos and compelling descriptions that highlight your property’s strengths.
Reservation Management: Handling all booking inquiries, screening guests, and managing the reservation calendar to prevent double-bookings. This ensures your property stays booked as often as possible with the right guests.
Dynamic Pricing Strategy: Setting and adjusting rental rates to maximise ROI. Professionals use local market data and tools to raise prices for high-demand periods and optimise rates during slower seasons, so you’re always competitively priced.
Guest Communication & Support: Promptly answering guest inquiries, facilitating smooth check-ins and checkouts, and being on-call for any issues or questions during the stay. This kind of 24/7 guest support leads to better reviews and less hassle for owners.
Cleaning, Maintenance & Compliance: Organising professional cleaning after each stay and performing regular maintenance inspections to keep the property in top condition. A good manager also ensures the property meets all safety standards and navigates local regulations (such as council rules or state levies) so that the rental operates legally and smoothly.
By taking care of these duties, a professional management service keeps your property competitive, well-maintained, and highly rated, without you having to lift a finger. They effectively turn your short-term rental into a hands-off investment.
As one industry guide notes, an expert manager handles everything from listing optimization and pricing to guest communication and property upkeep, all aimed at maximizing your returns while ensuring guests have a great stay.
The result for owners and investors is twofold: higher income and peace of mind. You reap the financial rewards of Melbourne’s booming rental market without the day-to-day stress of managing it. Indeed, professional managers often achieve better occupancy and revenue than DIY hosts; for example, they can swiftly adjust rates when Melbourne’s calendar of events (sporting finals, festivals, etc.) drives up demand, so you never miss out on peak earnings.
Moreover, they continuously refine your listing and service based on guest feedback and market trends, keeping you a step ahead of the competition.
For property owners and investors, this partnership is invaluable. Your asset is looked after by experts who treat it like a business employing hotel level practices in hospitality and yield management, which translates into higher nightly rates and more bookings.
At the same time, your property is kept in excellent condition through frequent cleaning and proactive maintenance. In short, entrusting your Melbourne rental to a professional manager means maximizing profit with minimal effort on your part.
A Better Experience for Melbourne Travellers
It’s not just owners who benefit from professional short-term rental management travellers as well. Melbourne has become a top destination for tourists and business travellers who often prefer the comfort of a home over a hotel.
Short-term rentals provide a unique, home-like experience that many travellers seek, which is one reason platforms like Airbnb have surged in popularity. Guests can enjoy more space, local neighbourhood vibes, and amenities like kitchens or laundry, making their stay in Melbourne feel more authentic and convenient. However, the best of these experiences often come from rentals that are well-managed.
A professionally managed property ensures that travellers find a clean, well-equipped, and safe environment every time. Check-in is easy and punctual, the Wi-Fi and appliances work reliably, and there’s someone on call to promptly address any issue or special request. This level of consistency and service can make a huge difference in guest satisfaction.
Melbourne’s reputation as a friendly, world-class city means traveller expectations are high. Guests appreciate thoughtful touches from fresh linens and local guidebooks to a welcome basket and responsiveness if they have questions about the home or tips about the city. Professional managers excel at providing these touches.
By applying hospitality best practices, they help guests feel welcome and taken care of, which in turn leads to 5-star reviews and repeat visits. Ultimately, when travellers have a great experience, everyone wins, guests enjoy their Melbourne trip, and owners benefit from positive reviews and increased booking demand for the future.
For travellers browsing accommodation options, knowing that a property is professionally managed can provide extra peace of mind. It signals reliability and quality, much like a trusted hotel brand would. Travellers can expect standardized cleanliness, accurate listings, and professional service.
So whether it’s a family on holiday seeking a cozy Melbourne apartment, or a business traveller needing a well-appointed condo for a week, choosing a Managed by MadeToStay property can ensure a smooth, pleasant stay.
Unlock Your Melbourne Rental Potential
Melbourne’s short-term rental scene offers incredible potential high tourist demand, premium nightly rates, and a chance to showcase unique properties to the world. But success in this market hinges on proper management. As we’ve discussed, expert management can mean the difference between a vacant apartment and a fully booked, high earning investment. It maximizes your income, protects your property, and keeps guests delighted.
In a city as vibrant and competitive as Melbourne, having professionals on your side is a smart business decision for any property owner or investor.
Don’t miss out on the rewards that Melbourne’s booming short-term rental market can deliver. Let MadeToStay help you navigate this landscape with confidence. We offer comprehensive short-term rental management services that cover everything marketing, pricing, guest care, and beyond, all tailored to Melbourne’s unique market dynamics.
Our formal, client-focused approach ensures that your property’s performance is enhanced strategically while guests enjoy top-tier experiences. The result is a win-win: better returns for you and happier guests every stay.
Ready to maximize your Melbourne rental returns? Contact MadeToStay today to discuss how our team can take your property to the next level. Whether you own a single Airbnb or a portfolio of investment properties, we are here to handle the heavy lifting and help you reap the rewards. Explore our services online or reach out for a personalized consultation and see how short-term rental management in Melbourne can truly be made to stay successful for the long run.
Contact us now and turn your Melbourne property into a high-performing, hassle-free investment!
