Melbourne is a top destination for travellers, offering a vibrant mix of culture, food, and entertainment.
With its popularity, many property owners are turning to Airbnb as a way to generate income.
But is Airbnb profitable in Melbourne? The short answer is yes, if managed correctly. In this guide, we’ll break down everything you need to know about Airbnb Melbourne management, including strategies to maximise your earnings, market trends, and tips for running a successful short-term rental.
Understanding Melbourne’s Airbnb Market
Before diving into ways to maximise your earnings, it’s important to understand Melbourne’s short-term rental landscape.
The profitability of an Airbnb depends on several factors:
- Location: Central areas like the CBD, Southbank, Fitzroy, and St Kilda attract high occupancy rates.
- Seasonality: Melbourne experiences fluctuating demand, with peak seasons during major events like the Australian Open, Formula 1 Grand Prix, and the Melbourne Cup.
- Property Type: Well-furnished apartments and houses in prime locations tend to perform best.
- Competition: With thousands of listings in Melbourne, standing out from the crowd is crucial.
How Much Can You Earn with an Airbnb in Melbourne?
Airbnb earnings vary widely depending on the property’s size, location, and management quality.
On average, Melbourne Airbnb hosts can earn:
- 1-bedroom apartment: $100 – $250 per night
- 2-bedroom apartment: $200 – $400 per night
- Entire house: $300 – $700 per night
These figures fluctuate based on peak and off-peak seasons. Well-managed properties with high occupancy rates can generate significant monthly income, often outperforming long-term rentals.
Maximising Your Airbnb Earnings in Melbourne
1. Optimise Your Pricing Strategy
Pricing is one of the most important factors affecting your Airbnb revenue. To maximise profits:
- Use dynamic pricing tools like AirDNA or PriceLabs to adjust rates based on demand.
- Set competitive rates by researching similar listings in your area.
- Offer discounts for long stays to attract bookings during slow seasons.
- Increase rates during major events and holidays.
2. Enhance Your Listing’s Appeal
A well-presented Airbnb attracts more bookings. Make sure your listing stands out by:
- Investing in professional photography – High-quality images can significantly increase bookings.
- Writing a compelling description – Highlight key amenities, nearby attractions, and unique selling points.
- Offering premium amenities – Features like fast WiFi, Netflix, a coffee machine, and stylish interiors can attract more guests.
3. Deliver an Outstanding Guest Experience
Happy guests leave positive reviews, leading to more bookings. To improve guest satisfaction:
- Ensure seamless check-in – Use a smart lock or key safe for convenience.
- Provide a welcome pack – Include local recommendations, snacks, and essential toiletries.
- Maintain high cleanliness standards – Hire professional cleaners to keep your property spotless.
- Be responsive – Answer guest queries promptly and offer assistance when needed.
4. Leverage Professional Airbnb Management Services
Managing an Airbnb can be time-consuming, especially if you own multiple properties. Professional Airbnb Melbourne management companies like BNB Butler handle everything from guest communication to cleaning, ensuring maximum profitability with minimal effort.
Benefits of using a management service include:
- Optimised pricing strategies to increase revenue.
- 24/7 guest support for better reviews and repeat bookings.
- Professional cleaning and maintenance to keep the property in top condition.
- Multi-platform listing management to reach a wider audience.
5. List on Multiple Platforms
While Airbnb is the most popular short-term rental platform, consider listing on:
- Booking.com – Attracts international travellers.
- Stayz/HomeAway – Popular for holiday homes.
- Expedia & Vrbo – Increases visibility to different audiences.
Using multiple platforms increases your property’s exposure and potential bookings.
6. Stay Compliant with Melbourne’s Short-Term Rental Regulations
Melbourne has specific rules regarding short-term rentals. Make sure you:
- Check your Owners Corporation rules if you own an apartment.
- Understand the Victorian short-stay accommodation levy coming into effect.
- Register your property with the local council if required.
- Follow noise and occupancy limits to avoid fines.
A good Airbnb Melbourne management company ensures compliance with these regulations, protecting your business from potential legal issues.
Frequently Asked Questions
Is Airbnb still profitable in Melbourne in 2024?
Yes, Airbnb remains profitable in Melbourne, especially in high-demand areas. Hosts who optimise pricing, maintain high standards, and offer great guest experiences can achieve strong returns.
What is the best area in Melbourne for Airbnb?
Popular areas include the CBD, Southbank, Fitzroy, St Kilda, Richmond, and South Yarra.
These locations have high tourist demand and great public transport access.
Do I need a permit to run an Airbnb in Melbourne?
Most properties don’t require a permit, but it’s essential to check local regulations and Owners Corporation rules if you own an apartment.
How do I manage my Airbnb efficiently?
You can either self-manage or hire a professional Airbnb Melbourne management service like BNB Butler, which handles everything from guest communication to cleaning and pricing.
What is the average Airbnb occupancy rate in Melbourne?
The occupancy rate varies but typically ranges from 60% to 85%, depending on location, seasonality, and management quality.
Airbnb can be a highly profitable venture in Melbourne if managed strategically. By setting competitive prices, offering top-notch guest experiences, leveraging professional management, and staying compliant with local regulations, you can maximise your earnings while minimising stress.
For a hassle-free experience, consider using a professional Airbnb Melbourne management service like BNB Butler to optimise your listing and handle the day-to-day operations.
