Airbnb vs Long-Term Rental: The Real Numbers in Brisbane
Brisbane's inner east is one of Australia's strongest short-term rental markets, particularly around Bulimba, Hawthorne, and New Farm. But the decision between short-term and long-term rental is more complex than comparing headline nightly rates. The real answer depends on costs, time, regulation, and risk.
The gross income comparison
A well-positioned 3-bedroom house in Bulimba or Hawthorne currently achieves the following approximate figures (based on 2024-25 market conditions):
Long-Term Rental
$850 – $1,000/wk
3-bed, 1-2 bath, inner east
Annual gross: ~$44,000 – $52,000
Occupancy: ~97% (long-term)
Short-Term Rental (Airbnb)
$180 – $280/night
3-bed, well-presented, inner east
Annual gross at 70% occ: ~$46,000 – $71,000
Occupancy: 65–75% (varies significantly)
At headline level, short-term rental wins on gross income. But gross income is not the metric that matters. Net cash flow after all costs is.
The cost comparison
| Cost Item | Long-Term | Short-Term |
|---|---|---|
| Platform / agent commission | 8–10% of rent | 15–20% (Airbnb + mgmt) |
| Cleaning | Tenant responsibility | $80–$180 per turnover |
| Furnishing | Unfurnished | $15,000–$30,000 upfront |
| Consumables (toiletries, linen, etc.) | None | $2,000–$5,000/yr |
| Utilities (power, internet, water) | Tenant pays | Owner pays (~$3,000–$5,000/yr) |
| Insurance | Standard landlord policy | Specialist STR policy (higher cost) |
| Maintenance (wear and tear) | Lower frequency | Higher frequency, faster deterioration |
| Management time | Minimal (via PM) | High (unless using full-service STR manager) |
A conservative estimate for additional annual costs on a short-term listing (cleaning, utilities, furnishing amortisation, platform fees, higher management) compared to long-term is $15,000 to $25,000 per year. That gap erodes much of the gross income advantage.
Queensland regulation: what you need to know
Queensland does not have a single short-term rental registration framework at the state level (as at early 2025), but Brisbane City Council planning rules apply. Under BCC CityPlan 2014:
Body corporate restrictions: From 25 October 2023, Queensland body corporates can pass by-laws restricting or banning short-term rentals in their scheme. If you are buying a unit with STR income in mind, check the by-laws and minutes for any existing or proposed restrictions before you exchange.
Tax treatment
Both long-term and short-term rental income is assessable for income tax. The key difference is GST. If your short-term rental turnover exceeds $75,000 per year across all commercial activities, you may be required to register for and remit GST. Long-term residential rental is input-taxed (GST exempt). Consult an accountant before committing to a STR strategy.
Capital gains tax is also affected. If a primary residence is used for short-term rental for part of the ownership period, the main residence CGT exemption may be partially lost when you sell.
When short-term makes sense
When long-term is the better call
Thinking about an investment property in Brisbane's inner east?
Daniel Gierach can help you run the real numbers on any property you are considering and assess whether long-term or short-term makes more sense for your situation. Book a conversation.
Income and cost figures are illustrative estimates based on 2024-25 inner Brisbane market conditions. Short-term rental income is highly variable. Always obtain independent financial and tax advice before making investment decisions. BCC planning rules: cityplan.brisbane.qld.gov.au. ATO rental income guidance: ato.gov.au.