Airbnb vs long-term rent: which earns more?

Why the headline numbers mislead

Short-stay data sites quote very different "average Airbnb income" figures for the same city, because some include part-time and holiday-home listings and some don't. And gross booking income is not what you take home. A short stay carries costs a long-term lease doesn't: higher management fees, power and internet, guest supplies, furniture, insurance, and in Brisbane, higher council rates.

So instead of quoting averages, below are two worked examples with every assumption shown. Swap in your own numbers, or ask us for an appraisal of your property.

Brisbane example: 2-bed apartment, inner city

Assumptions: a long-term rent of $750 a week, in line with Domain's asking rents for inner suburbs like Brisbane City, Newstead and Teneriffe. For short stays, $230 a night at 75% occupancy, close to the Brisbane median that Airbtics reports for 2025–26. Guest cleaning fees are assumed to cover cleaning and linen.

Brisbane inner-city 2-bed apartment	Long-term lease	Short stays
Rent or nightly rate	$750 a week	$230 a night
Weeks or nights let	50 weeks (2 weeks vacant)	274 nights (75% occupancy)
Gross income	$37,500	$63,020
Management	−$3,000 (8%)	−$12,600 (20%)
Letting fees and advertising	−$1,000	included
Power, internet, streaming	tenant pays	−$3,500
Guest supplies	none	−$1,500
Extra council rates (transitory category)	none	−$1,200
Short-stay insurance	landlord policy (similar)	−$600
Furniture and styling (≈$15,000 spread over 5 years)	none	−$3,000
Net before strata, loan and tax	≈ $33,500	≈ $40,600

Result: short stays come out about $7,000 a year ahead (around 20%). Strong apartments near the CBD, South Bank or the hospitals often beat these figures. A weak listing with poor photos or pricing can fall below the lease.

Sydney example: 2-bed apartment, inner east

In Greater Sydney, a non-hosted home can only take 180 nights of short stays a year. Stays of 21 nights or more don't count towards the cap (see our Sydney rules guide). So the realistic short-stay plan is a mix: short stays in peak months, then furnished mid-term stays for corporate, relocation and medical guests.

Sydney inner-east 2-bed apartment	Long-term lease	Short + mid-term mix
Rent or nightly rate	$900 a week	$280 a night (short), $160 a night (21+ night stays)
Weeks or nights let	50 weeks	170 short nights + 140 mid-term nights
Gross income	$45,000	$70,000
Management	−$3,600 (8%)	−$14,000 (20%)
Letting fees and advertising	−$1,000	included
Power, internet, supplies, insurance	tenant pays power	−$6,200
Furniture and styling (≈$17,500 over 5 years)	none	−$3,500
Net before strata, loan and tax	≈ $40,400	≈ $46,300

Result: the mix comes out about $6,000 a year ahead (around 15%), and you can use the apartment yourself between bookings. If the building's strata by-laws ban non-hosted short stays, the mid-term model on its own (21+ night stays) is often still worth more than a lease.

When long-term renting is the better choice

• You want hands-off, predictable income. Short-stay income moves with the seasons, events and the economy.
• It's a house in a low-density suburb. In Brisbane, whole-home short stays in the Low density residential zone need a development application (see our Brisbane rules guide).
• Your Sydney strata bans short stays and there's little mid-term demand nearby.
• The location has little visitor demand, far from the CBD, hospitals, universities, beaches or event venues.
• You don't want to furnish, or the property needs a lot of work to be guest-ready.

When short stays (or mid-term) win

• Inner-city apartments close to the CBD, hospitals, universities, stadiums, beaches and transport.
• You want to use the property yourself a few weeks a year, or keep the option to sell or move in without waiting for a lease to end.
• You want the property looked after closely. A professionally managed short stay is cleaned and checked after every guest, not once or twice a year.
• Brisbane, heading towards 2032. Visitor demand is growing ahead of the Olympics, and Queensland has no night cap or short-stay levy.
• Mid-term stays (one to six months, furnished) sit in between: higher rent than a lease, fewer turnovers than Airbnb, and outside Sydney's 180-night cap once stays are 21 nights or more.

The risks to weigh

• Income swings. Expect softer months (in Brisbane, usually late summer and winter shoulder periods) and plan cash flow for them.
• Rules can change. Councils and state governments keep reviewing short-stay rules. Choose a manager who can switch your property to mid-term or long-term quickly if needed.
• Wear and tear. More guests means more use. Good screening, security deposits or damage protection, and regular inspections keep this in check.
• Tax. Both options are taxed as rental income and expenses are generally deductible. Furniture can usually be depreciated. If you use the property yourself, deductions are apportioned. Check your position with your accountant.

Common questions

Does Airbnb make more money than renting long-term?

Usually, for well-located inner-city apartments. In our 2026 worked examples, a Brisbane 2-bed apartment netted about $40,600 from short stays against about $33,500 from a long-term lease, after management, utilities, supplies, furniture and higher council rates. The gap is closer to 15–25% than the doubling that gross figures suggest.

What costs does Airbnb have that long-term renting doesn't?

Higher management fees (typically about 15–25% for full service against about 6–9% for leasing), power and internet, guest supplies, furniture and styling, short-stay insurance, and in Brisbane, the higher transitory accommodation rates category.

Is Airbnb worth it in Sydney with the 180-night cap?

Often yes, if you combine up to 180 nights of short stays with furnished stays of 21 nights or more, which don't count towards the cap. In our example that mix netted about $46,300 against about $40,400 from a long-term lease.

What is mid-term rental?

Furnished stays of roughly one to six months, for corporate, relocation, medical and insurance guests. Rents are higher than a standard lease, there are fewer turnovers than Airbnb, and in Sydney stays of 21 nights or more fall outside the 180-night cap.

Can I switch between Airbnb and long-term renting?

Yes. Many owners move between short, mid and long-term letting as the market, rules or their own plans change. A manager licensed for all three can do it without changing agencies.

Related: Brisbane short-stay rules · Sydney short-stay rules · Pricing. Figures are worked examples using public 2025–26 rent and short-stay market data (Domain rent reports, Airbtics). They are not a forecast for any specific property.

Last checked: 9 November 2026. This page is general information, not legal or tax advice. Rules change, so confirm the details for your own property with the council, your body corporate or strata manager, and your accountant.