Airbnb is Dead. Long Live the 6-Month Lease?

The rise of Airbnb once felt unstoppable. For years, investors flocked to short-term letting platforms in search of high returns, flexible hosting, and booming tourist demand. But in 2025, the tides have turned. Many landlords are quietly returning to long-term leasing.

Is Airbnb really dead? Not quite. But the golden age of short-term rentals may be over for many suburban investors, and the humble 6 or 12-month lease is making a serious comeback.

Cracking Down: Regulation is Changing the Game

From Sydney to Melbourne and even smaller regional towns, tighter regulations have put pressure on short-stay operators. Here’s a snapshot of some key changes:

• NSW has capped short-term rental use in Greater Sydney to 180 days per year unless the host lives on-site.
• Victoria introduced a new 7.5% levy on short-stay accommodation, effective from January 2025.
• Brisbane City Council raised rates for properties used as short-term rentals by 50%, in a move to push investors back to the long-term rental pool.

These measures are aimed at addressing rental shortages and returning stock to the long- term market. For investors, it also means reduced profits and increased red tape.

A Softer Market and Lower Yields

Many Airbnb hosts are now facing:

• Increased vacancy as international tourism remains patchy
• Higher cleaning and maintenance costs
• Shorter booking windows and more price competition

In some areas, short-term rental yields have dropped significantly while long-term rents have risen. According to CoreLogic, capital city rents rose 9.4% year-on-year in early 2025, with Perth and Brisbane leading the charge. With tight vacancy rates, landlords are regaining control and consistent rental income is proving more appealing than sporadic bookings.

Stability Over Speculation

For investors, the shift to long-term leasing brings real advantages:

• Less volatility. No reliance on seasonal or event-based demand
• Simpler management. Fewer turnovers and lower operational costs
• Financing ease. Lenders often prefer stable lease agreements over inconsistent short-term income

Short-stay platforms are not disappearing entirely, but they are no longer the easy win they once seemed. In many suburbs, especially those without strong tourism infrastructure, the numbers just don’t stack up.

If you're unsure whether your property is better suited to Airbnb or a long-term lease, consider:

• Rental yield in both models over 12 months
• Vacancy risks
• Regulatory exposure in your state
• Demand from local renters or professionals

It is not about chasing the highest rent. It is about building a sustainable portfolio that delivers consistent cash flow and capital growth.

Need help reviewing your property’s rental strategy?
Our leasing experts can help you weigh up the pros and cons and make the numbers work. Contact Club Property Management at leasing@clubpropertymanagement.com.au

Sources:

• CoreLogic Rental Review, May 2025
• NSW Fair Trading: Short-term Rental Accommodation Rules
• Victorian Government Budget Papers 2024–25
• Brisbane City Council Rate Changes for STRAs, 2023