Short-Term vs Long-Term Rental in Queensland: What's Better?
Compare short-term and long-term rentals in Queensland to see which strategy fits your investment goals. Explore income potential & regulations.
Compare short-term and long-term rentals in Queensland to see which strategy fits your investment goals. Explore income potential & regulations.
In 2025, Queensland’s property landscape is more dynamic—and more competitive—than ever. Investors across Brisbane, the Gold Coast, and the Sunshine Coast are asking a critical question: Should I rent out my property short-term or long-term?
It’s not just a debate about yield or convenience. The choice between short-term and long-term rentals in Queensland has become a defining strategy in real estate investment. Changing tourism patterns, tighter rental supply, evolving regulations, and new tax implications all mean that your rental model can significantly impact both your income and your property’s long-term value.
With the Brisbane 2032 Olympics on the horizon and demand for Airbnb-style accommodation surging across Southeast Queensland, many owners are exploring short-term letting as a way to maximise returns. But long-term rentals offer their own strengths—like consistent income, less management, and fewer regulatory hurdles.
In this article, we’ll break down the key differences between these two rental strategies, using Queensland-specific data and examples. Whether you’re a seasoned investor or considering your first rental property, understanding both models is essential to making informed, future-focused decisions.
Before diving into profitability, regulations, or risk, it’s important to clarify what defines short-term vs long-term rentals in Queensland, and what each model offers investors.
A short-term rental typically refers to leasing a furnished property for periods under 90 days—often just a few nights to a couple of weeks. Properties listed on platforms like Airbnb, Stayz, and Booking.com fall into this category.
These rentals are especially popular in high-tourism zones such as Brisbane CBD, Broadbeach, Noosa, and hinterland retreats. They appeal to both domestic and international travellers, event attendees, and increasingly, corporate guests.
Key traits of Queensland short-term rentals:
The flexibility of this model is attractive for investors seeking higher yield and more control over when and how their property is used.
In contrast, a long-term rental refers to a residential lease of 6 to 12 months or more—what most landlords in Queensland have traditionally relied on. This model involves renting the property to a single tenant (or group) under a formal tenancy agreement, governed by the state’s Residential Tenancies and Rooming Accommodation Act.
Key traits of Queensland long-term leases:
Long-term rentals offer reliability and minimal oversight, making them ideal for passive investors or those focused on capital gains rather than high cash flow.
For property investors, rental income is one of the most important factors in choosing between short-term and long-term rentals in Queensland. While both models can generate solid returns, the yield differences are often significant, especially in high-demand urban and coastal areas.
Short-term rentals in Southeast Queensland—particularly in areas like Brisbane’s inner suburbs, Broadbeach, and the Sunshine Coast—can achieve strong nightly rates, especially when aligned with events or peak travel seasons.
Consider a 2-bedroom apartment in a central Brisbane suburb like Newstead:
This variability makes short-term letting particularly attractive for investors who prioritise high yield and dynamic pricing. See what your property could earn here.
That same property could achieve around $800/week on a standard 12-month lease in 2025’s Brisbane market. Long-term tenants provide:
While the fixed income doesn’t offer the high peaks of Airbnb, it offers predictability and lower risk—ideal for investors wanting hands-off ownership or steady mortgage coverage.
Short-Term Rental:
Long-Term Rental:
While short-stay rentals typically offer higher gross returns, they come with higher operational demands and greater income variability. Long-term leasing offers peace of mind and lower involvement, but with limited earning potential by comparison.
Choosing between a short-term and long-term rental model isn’t just about income—it’s also about how much time, effort, and expertise you’re prepared to invest in managing the property. In Queensland, the day-to-day demands of each rental strategy differ significantly, and understanding these can help you match your property to your capacity.
Short-term rentals, particularly those listed on platforms like Airbnb or Booking.com, are often perceived as more labour-intensive—and that’s true, to a degree. These properties require:
However, many owners now partner with short-term rental management services or co-hosts to handle the logistics—turning what was once a hands-on commitment into a largely passive income stream.
With strong systems (or the right support), short-stay properties can run efficiently—and potentially outperform their long-term counterparts in terms of both income and condition, thanks to frequent cleaning and inspections.
Long-term leases in Queensland offer a more familiar landlord experience. Once the tenant is in place, the arrangement is largely set-and-forget. Key considerations include:
The long-term model suits investors who want low time input and consistent returns, particularly if the property isn’t suited for furnishing or guest turnover.
It’s true that short-term rentals require more oversight. But they also provide more control over how the property is used, when it’s available, and how it’s priced. With smart systems or management support in place, many investors find that the higher income potential offsets the extra effort, particularly in markets like Brisbane, the Gold Coast, and the Sunshine Coast where demand is high and bookings are steady.
As the short-term rental market grows across Queensland, so does scrutiny from local councils and state authorities. Whether you choose Airbnb-style letting or a traditional tenancy, understanding the regulatory and risk landscape in 2025 is essential for protecting your investment—and avoiding costly surprises.
Short-term letting is legal throughout Queensland, but local council regulations vary widely by region and are tightening in response to housing shortages and community feedback.
Additionally, insurance requirements are stricter for short-term rental hosts. Standard landlord insurance usually doesn’t cover guest-related damage or liability. Specialised short-stay cover is essential with platforms like Airbnb even offering free insurance.
While these layers add complexity, they’re manageable with the right preparation—and many experienced hosts can navigate these easily.
The Queensland Government has introduced several major reforms affecting long-term landlords, including:
While these laws provide stability for tenants, they also reduce flexibility for owners—especially those trying to respond to inflation or market-driven rent changes.
Short-Term Rental Risks:
Long-Term Rental Risks:
Ultimately, short-term rentals carry more regulatory nuance, but long-term rentals are not regulation-free—especially in a climate of housing policy reform. Investors should stay informed, or work with professionals who can guide compliance in either model.
The decision between short-term and long-term letting doesn’t happen in a vacuum—it’s deeply tied to current market dynamics in Queensland. From vacancy rates to tourism trends and rental competition, external forces can strongly influence which rental strategy makes the most sense for your property and timing.
In 2025, Queensland continues to face historically low vacancy rates, particularly in Brisbane, the Gold Coast, and coastal hinterland areas. According to recent data:
This environment favours long-term landlords in terms of securing reliable tenants and achieving higher lease rates. However, it also leads local councils to scrutinise short-term rentals more closely, especially in zones with chronic housing undersupply.
On the flip side, tourism in Queensland is booming again, driven by:
This rebound fuels ongoing demand for Airbnb properties, particularly:
In popular suburbs, competition is increasing. In Brisbane’s New Farm, West End, and Fortitude Valley, for example, the number of active Airbnb listings has grown by over 20% year-on-year. This makes professional listing management, guest experience, and pricing strategy critical to staying competitive.
Beyond income and operations, investors must consider how tax implications and financing options vary between short-term and long-term rentals in Queensland. These factors can significantly influence your net returns, borrowing capacity, and long-term portfolio strategy.
Both rental models are eligible for common investment property deductions—including loan interest, council rates, insurance, and maintenance—but short-term rentals often unlock additional tax benefits, especially for investors who actively manage the property.
However, short-term rental income is also closely scrutinised by the ATO. All income must be declared, and any periods of personal use can reduce deductions. GST generally doesn’t apply unless offering services beyond accommodation (e.g. meals or transport).
Financing a short-term rental property in Queensland can be more challenging than financing a long-term rental. Traditional lenders typically prefer:
That said, growing lender familiarity with Airbnb and short-stay income means some banks and brokers now accept historical short-term rental earnings as part of your borrowing profile—particularly if the income is managed through a recognised platform or service.
Many Queensland investors are now exploring hybrid models—using their property as a short-term rental during peak periods (e.g. holidays, events) and switching to long-term tenants in off-peak seasons. This flexible strategy can help balance income maximisation with long-term occupancy stability.
It also provides exit flexibility if regulations change or market dynamics shift.
Your ideal rental strategy depends not just on your property, but also on how involved you want to be, what you’re aiming to earn, and how your investment fits into your broader financial goals. Here’s how different investor types might align with each model:
Busy or Remote Owner
Maximising Returns
Risk-Averse Owners
Unfurnished Property Owner
Hybrid Approach
Short-term rentals used to be seen as a high-effort strategy, but with the rise of professional co-hosting services and data-driven management, they’ve become an accessible and profitable option for a broader range of investors.
There’s a perception that Airbnb-style properties require constant attention—but that’s no longer true. With an experienced short-term rental manager, owners can unlock premium returns without being on call for every guest arrival or maintenance request.
Professional co-hosts take care of:
That means you get the earning potential and flexibility of short-stay letting, without the operational headache.
Long-term leases remain a strong choice for investors seeking simplicity and minimal involvement—particularly in suburbs with consistent tenant demand. But with rent controls tightening and lease terms becoming more regulated, flexibility is limited, and returns are often capped.
Queensland’s property market continues to evolve, and with it, so do the strategies investors use to maximise returns. While long-term leases offer predictable income and minimal hands-on involvement, the short-term rental model is fast becoming the preferred path for investors seeking flexibility, control, and significantly higher yields—especially in high-demand tourism and event-driven regions.
And thanks to the rise of professional short-term rental management, investors no longer need to trade time for returns. Today’s Airbnb hosts can outsource the entire operation—from guest bookings and pricing strategy to cleaning, maintenance, and compliance—while still earning more than they would with a traditional lease.
Whether you’re new to the market or re-evaluating your portfolio, short-term letting isn’t just viable—it’s increasingly smart. It offers adaptable income, personal use flexibility, and a way to align your investment with Queensland’s thriving visitor economy and future infrastructure boom.
In the right location and with the right support, short-term rentals offer a compelling edge in Queensland’s real estate landscape.
Discover how to boost income and simplify property management with expert tips.
Contact Us