Did you know that the global short-term rental market is projected to grow to USD 355.38 billion by 2037?
With this growth comes both opportunities and challenges for Airbnb hosts and investors.
In Melbourne, where short-term rentals in Melbourne are thriving, staying ahead of the curve is essential.
From evolving regulations to shifting guest preferences, the landscape of Airbnb management in Melbourne is changing rapidly.
So, how can you ensure your property remains profitable and competitive in 2025? Let’s dive in.
Key Trends Influencing Airbnb Management In 2025
1. Increased Regulations On Short-Term Rentals
Governments worldwide, including Australia, are introducing more policies to control short-term rentals. Melbourne is expected to follow global trends by enforcing stricter zoning laws, requiring permits, and setting limits on rental days per year.
Regulation Area | Impact on Hosts |
Permit Requirements | Hosts may need to register and obtain approval to list their properties. |
Rental Caps | Some areas may restrict the number of nights a property can be rented annually. |
Local Taxes | Increased tax obligations on short-term rental income. |
Hosts should stay updated with these regulations to avoid legal complications and potential fines.
2. Market Growth And Saturation
While the number of Airbnb listings continues to rise, many urban markets are nearing saturation. In 2025, suburban and rural areas are expected to see higher demand, offering better opportunities for investors.
3. Changing Guest Preferences
Modern travellers are looking for more than just accommodation.
Key guest preferences in 2025 include:
- Eco-friendly stays: Properties that implement sustainable practices attract environmentally conscious guests.
- Remote work amenities: High-speed internet and dedicated workspaces are essential.
- Unique experiences: Guests seek properties with distinctive features or themed interiors.
Properties that align with these preferences will gain a competitive edge in property management at Airbnb.
Research Before Investing In An Airbnb Property
1. Market Analysis
Before purchasing a property, conducting market research is crucial. Key factors to analyse include:
- Occupancy rates: Understanding how frequently properties are booked in a specific area.
- Nightly pricing: Evaluating the average rates of similar listings.
- Demand drivers: Identifying what attracts travellers to the area, such as tourist attractions, business hubs, or events.
Tools like AirDNA and Mashvisor can provide valuable insights for better decision-making.
2. Location Assessment
The success of an Airbnb property largely depends on its location. Consider:
- Proximity to attractions: Properties near major sites tend to perform better.
- Accessibility: Good transport links improve guest convenience.
- Competition: Areas with fewer competing listings may offer higher occupancy rates.
Suburban areas near Melbourne’s city centre are emerging as prime locations for short-term rentals in Melbourne due to lower competition and increasing demand.
3. Understanding Local Regulations
Every city has different rules regarding short-term rentals. Hosts must research:
- Permit requirements: Whether they need special approval to operate.
- Tax obligations: Income tax, occupancy tax, and potential council fees.
- Zoning restrictions: Certain areas may prohibit short-term rentals.
Ignoring regulations can lead to penalties and listing removal, making compliance essential for long-term success.
Financial Considerations For Airbnb Investments
1. Calculating Total Costs
Investing in Airbnb requires financial planning. Here’s a breakdown of the costs involved:
Cost Type | Expenses to Consider |
Initial Costs | Down payment, legal fees, property renovation, furnishing |
Ongoing Costs | Mortgage, utilities, cleaning services, property maintenance |
Additional Costs | Airbnb service fees, insurance, marketing expenses |
2. Evaluating Return on Investment (ROI)
Setting Up An Airbnb For Success
A successful Airbnb should generate positive returns. Key financial metrics include:
- Cap rate: Measures the net operating income against the property’s purchase price.
- Cash-on-cash return: Evaluates the annual cash flow relative to the total investment.
Using pricing tools can help estimate revenue potential.
1. Essential Amenities For 2025
The more amenities a property provides will draw in more guests. Essential amenities will consist of:
- High-speed internet: A must-have for digital nomads and business travelers.
- Unique elements: Hot tubs, fire pits, and game rooms become icing on the cake for the enjoyment of guests.
- Pet-Friendly Properties: Reach families and pet owners.
2. Listing Optimisation
An enticing Airbnb listing will mean a lot more bookings. Some important things to include would be:
- Professional photos: Good, high-resolution images to make the property get more attention.
- Well-written description: Throw in the focus of property and considerable mention of keywords.
- Competitive pricing strategy: Set rates based on market demand.
3. Self-Managing Action vs. Management Company Services
It takes time and work to operate an Airbnb. You have two options:
Self-management: Automate by way of platforms.
- Go with a property manager: Outsource operations for a fee based on a percentage of revenue.
- Digital guest books: These can significantly reduce the burden of guest communication while also improving reviews.
Airbricks Simplifies Airbnb Management
This won’t always be an easy thing in 2025, but there’s no reason you should go through it alone. Airbricks has made Airbnb management a whole lot less of a hassle in Melbourne by managing everything from guest communication through to cleaning and compliance. It will keep your place in good name by making sure it is booked, taken care of, and optimized for maximum returns. To experience the benefits of short-term rentals without working through the issues by yourself, let us take care of it. Contact us today to discover how we can help make your Airbnb successful!
