Short-term rentals—through platforms like Airbnb and Stayz—have become increasingly popular in Perth. For property owners, they can offer attractive returns compared to traditional leases. For guests, they provide flexible, often more affordable options for accommodation.
But are short-term rentals really the right choice for your investment property? At CY Real Estate, we’ve seen both the advantages and the challenges that come with managing these types of properties. If you’re considering renting out your home or investment on a short-term basis, here’s a balanced look at the pros and cons.
Pros of Short-Term Rentals
1. Higher Income Potential
One of the biggest drawcards of short-term rentals is the potential for higher rental yields. Nightly rates can add up quickly, especially during peak travel seasons, major events, or school holidays in Perth. For example, a property near Scarborough Beach or Fremantle could earn significantly more per week through short stays than it would under a long-term lease.
2. Flexibility for Owners
Short-term rentals give you the flexibility to use your property when it suits you. If you own a holiday home in Perth’s coastal suburbs, you can block out dates for personal use and rent it out the rest of the year. This flexibility is appealing for owners who want to balance investment returns with lifestyle benefits.
3. Tax Benefits & Deductions
Many expenses associated with short-term rentals—such as cleaning, property management, and maintenance—can be claimed as tax deductions. While it’s essential to seek advice from a tax professional, this can help offset some of the costs of running your investment.
4. Market Demand in Perth
Tourism in Perth is growing, with visitors attracted to the Swan River, Kings Park, Rottnest Island, and WA’s stunning beaches. Short-term rentals provide travellers with an alternative to hotels, and demand often spikes during summer and event seasons.
Cons of Short-Term Rentals
1. Inconsistent Income
While short-term rentals can deliver high returns, income can fluctuate depending on season, location, and competition. During quieter months, your property may sit vacant, which means no income at all. This uncertainty can be a drawback compared to the steady income of a long-term tenant.
2. Increased Management & Workload
Managing a short-term rental can feel like running a small business. Between guest communication, bookings, check-ins, cleaning, and property maintenance, it’s far more hands-on than a standard lease. Many owners choose to engage a professional property manager, such as CY Real Estate, to handle the workload.
3. Higher Wear & Tear
Short-term guests may not treat the property with the same care as a long-term tenant. This can lead to faster wear and tear, more frequent maintenance, and higher cleaning costs. Furniture, appliances, and fixtures may need to be replaced more often.
4. Regulations & Compliance
Local councils in WA have been reviewing short-term rental regulations, and owners need to stay compliant. This may include registering the property, paying additional fees, or following rules about how many days a property can be rented. Not staying up to date can result in fines or restrictions on your rental.
5. Insurance Challenges
Standard landlord or home insurance policies may not cover short-term rentals. Owners often need specialised insurance to protect against damage, liability, or cancellations. This can increase operating costs and requires careful planning.
Is a Short-Term Rental Right for You?
Whether short-term rentals are the right choice depends on your goals as a property owner. If you’re seeking higher potential returns and flexibility—and are willing to manage the extra work—they can be a rewarding investment. On the other hand, if you value stable income and lower stress, a traditional long-term lease may be better.
This is where CY Real Estate can help. Our team has extensive experience in property management across Perth and can advise on whether a short-term or long-term strategy best suits your situation. We assist with everything from pricing strategies to marketing, guest communication, and compliance, ensuring your investment is both profitable and stress-free.
Short-term rentals in Perth come with both exciting opportunities and unique challenges. Higher returns, flexibility, and growing demand are attractive benefits, but owners must also weigh up the risks of inconsistent income, regulations, and increased management.
If you’re considering entering the short-term rental market—or if you’re unsure whether a long-term lease might be a better fit—talk to the experts at CY Real Estate. We’ll help you make an informed decision, backed by local market knowledge and professional management services.
Contact CY Real Estate today to discuss the best strategy for your property in Perth’s dynamic market.
