The short-term rental market is booming, and there’s never been a better time to invest—especially with Mydeerhome making property management seamless. With travel demand surging, platforms like Airbnb and Vrbo leading the industry, and more travelers preferring vacation rentals over traditional hotels, this is a golden opportunity for homeowners like you.
If you’ve been considering real estate investment but aren’t sure where to start, short-term rentals offer flexibility, high returns, and long-term growth potential. Here are 10 compelling reasons why now is the time to enter the market.
1. Higher Income Potential Than Long-Term Rentals
Short-term rentals can generate 2-3 times more income than traditional long-term leases. Instead of locking in a fixed monthly rent, you can charge premium nightly rates—especially in high-demand tourist areas or during peak seasons.
For example:
A property renting for $1,500/month on a long-term lease could earn $150–$300/night as a short-term rental. If booked for just 15–20 nights/month, you could double or triple your income.
💡 Pro Tip: With Mydeerhome’s smart dynamic pricing tools, we actively monitor demand and adjust your nightly rates in real time—helping you earn more by maximising occupancy and profits without lifting a finger.
Photographer：Fahad Al Rajaan
2. Exploding Travel Demand Post-Pandemic
After years of travel restrictions, people are eager to explore. According to AirDNA, short-term rental bookings surged in 2023, with no signs of slowing in 2024 and 2025.
- Remote work allows travelers to stay longer (workations).
- Families and groups prefer vacation rentals over cramped hotel rooms.
- Experiential travel is trending—guests want unique stays (cabins, tiny homes, beachfront villas).
This demand ensures consistent bookings and strong occupancy rates—especially when your property is listed and managed through Mydeerhome, using our proven strategies to attract the right guests and fill your calendar.
3. Flexibility to Use Your Property
Unlike long-term rentals, short-term rentals allow personal use. You can:
- Block off dates for your own vacations.
- Rent it out only during high-demand seasons.
- Use it as a second home when not booked.
This dual-purpose investment means you profit while still enjoying the property—Mydeerhome helps you manage availability seamlessly.
4. Enjoy Tax Benefits and Compliance Managemente and Engaged
In Australia, the tax treatment of short-term rental properties differs from long-term rentals. Property owners should understand relevant regulations to ensure compliance and optimize their returns.
Income Reporting and Tax Deductions
All income from short-term rentals must be declared in personal income tax returns. Property owners can deduct rental-related expenses, such as:
- Property maintenance and repairs
- Cleaning services
- Property management fees
- Utilities (electricity, water, gas)
- Insurance premiums
These deductions help lower taxable income, thereby reducing tax liability. Mydeerhome provides detailed monthly financial reports, making it easy for you to track deductible expenses and ensure tax compliance.
Goods and Services Tax (GST)
If your annual rental income exceeds the threshold set by the Australian Taxation Office (ATO) (currently AUD 75,000), you must register for and pay GST. This means adding a 10% GST to rental rates and regularly reporting and remitting GST to the ATO.
Capital Gains Tax (CGT)
Selling an investment property used for short-term rentals may incur Capital Gains Tax (CGT). However, if the property was previously your primary residence, you may qualify for a partial or full CGT exemption. The exemption depends on the period and purpose of the property’s use. Consulting a tax professional is recommended to obtain accurate guidance.
Victoria’s Short-Stay Levy
From 1 January 2025, Victoria will introduce a 7.5% Short Stay Levy on short-term rental properties. This tax applies to bookings of less than 28 days made through platforms like Airbnb and Stays. The levy is calculated based on the total booking cost, including cleaning fees and GST but excluding credit card surcharges. Primary residences, hotels, and commercial accommodations are exempt from this tax.
Tax regulations may vary by state and region and are subject to change. Property owners should regularly check updates from the Australian Taxation Office (ATO) and state revenue offices or consult a tax professional to ensure compliance and maximize available tax benefits.
5. Property Appreciation + Cash FlowSomething Unique
Real estate historically appreciates over time. By investing in a short-term rental, you benefit from:
- Higher monthly income from short-term guest stays.
- Long-term value growth (equity building).
Hot markets like beach towns, mountain resorts, and urban hotspots see double-digit appreciation, making this a wealth-building machine—especially with Mydeerhome optimizing your strategy.
Photographer：Mike Lawrence
6. Lower Risk Than Long-Term Rentals
Short-term rentals offer more control and less risk because:
- No long-term tenants (avoid eviction hassles).
- Adjust pricing based on demand (unlike fixed leases).
- Regular property inspections mean fewer surprise damages.
Plus, if a guest causes issues, they’re gone in days—not months. At Mydeerhome, our property managers regularly inspect your home, and with frequent cleaner access, we quickly spot and report any problems. Thanks to our handyman partnerships, we can fix issues fast.
7. Technology Makes Management Easy
Gone are the days of hands-on landlord struggles. Today, automation tools simplify short-term rental management. Mydeerhome integrates with leading technologies to streamline operations, so you can enjoy passive income without the hassle.
8. Diversify Your Investment Portfolio
Adding short-term rentals to your portfolio reduces risk by:
- Balancing stocks/bonds with tangible assets.
- Spreading income across multiple properties/locations.
If one market dips, another may thrive—hedging against downturns. Mydeerhome helps analyses the best markets for diversification.
9. Stronger Community & Economic Impact
Short-term rentals boost local economies by:
- Bringing tourist dollars to small businesses (restaurants, shops).
- Creating jobs (cleaners, property managers, maintenance workers).
You’re not just earning—you’re supporting the local economy. Mydeerhome promotes sustainable tourism practices.
10. It’s Easier Than Ever to Get Started
With platforms like Airbnb, Vrbo, and Booking.com, listing your property takes minutes. Plus, you have access to:
- Financing options tailored for rental investments.
- Professional property management services if you don’t want hands-on work.
You don’t need to own multiple properties—one well-strategized rental can be life-changing. Join Mydeerhome, and we’ll handle everything for you—from setting up the listing to managing bookings—so you can start earning without the hassle.
Final Thoughts: Now Is the Time to Invest
The short-term rental market is thriving, and the opportunity is ripe. With higher income potential, tax benefits, flexibility, and strong demand, there’s no better time to jump in.
Whether you’re looking for passive income, portfolio diversification, or a future appreciating asset, short-term rentals offer unmatched advantages over traditional real estate investments—especially with Mydeerhome streamlining the process.Ready to Capitalize on This Booming Market?
Start researching locations, crunch the numbers, and take the leap—your future self will thank you!
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What’s holding you back from investing? Let us know in the comments!
Sources: AirDNA: [https://www.airdna.co/]
Airbnb Travel Trends: [https://news.airbnb.com/]
Australian Taxation Office (ATO): [https://www.ato.gov.au/]
Victoria’s Short-Stay Tax Policy: [https://www.hltpartners.com.au/]
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