With over 20,000 active listings in the Melbourne metropolitan area, the capital, Victoria, has seen one of the fastest growing short-term rentals in Australia in the past two years. With nearly 263,700 overnight stays booked in January 2019, Melbourne's bustling atmosphere and its status as Capital of Culture have made it one of the most profitable regions in terms of short-term rental of the country.
Last year, average fares per night for Melbourne flights on Airbnb ranged from $ 163 to $ 210 per night, depending on the location, type of property, number of rooms and seasonality.
With regard to the occupancy rate, the most popular suburbs are concentrated around the eastern part of the city center, within a radius of 5 km of popular tourist areas, offering bars, restaurants, cafes and shops.
Brunswick, Northcote, Collingwood, Brighton, Abbotsford and Albert Park are the most popular suburbs for homes and Fitzroy, Collingwood, Richmond, Toorak and St Kilda are the most popular for apartments all year round.
Similar to Sydney, the most popular type of housing options for short-term rentals are two-bedroom properties that are generally apartments. However, in terms of housing types, independent houses and apartments located in the same suburbs have very similar performances, regardless of the size of the bedroom.
The impact of seasonality on short-term rentals in Melbourne was much lower than that of Sydney, with the larger suburbs remaining almost the same during the hottest and coolest seasons.
With constant occupancy rates and occupancy rates, Melbourne is expected to post strong growth and strong short-term rental demand over the next decade.
Source: occupancy rate of short-term rentals based on Airbnb list data
How does seasonality affect short-term rentals in Melbourne?
Melbourne has a relatively constant occupancy rate throughout the year, rising only slightly in summer (from 62.6% in winter to 68.3% in summer). For example, Brunswick, the most popular suburb for homes all year, recorded an occupancy rate of about 71.8% in winter and 78.4% in summer.
Unlike Sydney, where the occupancy rate has increased significantly due to its many beaches, the rise in occupancy in Melbourne is probably due to the proliferation of popular sporting and cultural events during l & # 39; summer.
However, a high occupancy rate all year round is guaranteed in the suburbs such as Richmond, Collingwood, Brunswick, Abbotsford and Albert Park, located near sports and entertainment venues.
What other factors play a role in short-term rental?
It is important to note that if location, price and seasonality are critical factors that determine the success of your rental in the short term, other factors such as housekeeping, customer experience , the furnishings and style are also crucial.
Attempting to maintain a steady flow of passive income from short-term rentals can sometimes seem overwhelming to reconcile five different roles in addition to your full-time job. In such situations, short-term property management companies are often the most cost-effective and efficient solution, providing you with additional labor and expertise and allowing you to provide a superior customer experience with less hassle .
If you are looking for an Airbnb management service in Melbourne, MadeComfy is one of the leading short-term rentals managers (also serving Sydney, Brisbane and the Gold Coast), where you can get an immediate estimate of the rent from the calculator of their website: madecomfy .com.au or ask for a free evaluation of the rental potential of your property.
You can also learn more about Melbourne's best real estate investment sites for Airbnb on MadeComfy's blog.
Disclaimer: The views expressed by the contributors and / or the paid content do not necessarily reflect the views of Your investment.
