The Australian short-term rental (STR) market never stands still. In just a few years, homeowners have had to adjust to new regulations, shifting guest habits, and economic pressures that directly affect their returns.

A property that once earned steadily on Airbnb may now feel less reliable. Nights are capped in some areas, levies have been introduced in others, and guest expectations have risen. At the same time, rising mortgage repayments and inflation mean every booking counts.

For many homeowners, the pace of change creates uncertainty when managing an Airbnb. It’s no longer enough to just list a property online. You need to adapt to Airbnb regulation changes, know when demand will surge, and understand what guests expect from a modern holiday home.

Airbnb regulations in Australia 2025

Airbnb regulations in Australia in 2025 continue to evolve, and many homeowners are asking what this means for their income. With rules shifting from state to state, it’s easy to feel uncertain. The good news is that knowing the basics helps protect your earnings and keep your property performing. This includes:

Regulatory shifts

Every state and territory takes a different approach, making compliance tricky:

• New South Wales: STR properties are capped at 180 nights per year.
  
• Victoria: From 2025, a new 7.5% levy applies to all STR bookings. This leby does not apply to properties that are the owner’s principle place of residence (PPR).
  
• Western Australia: All STR providers must register their property with the STRA register.
  
• Queensland: No blanket state-wide rules, but councils such as Noosa Shire enforce approvals, contact details, and codes of conduct.
  
• Northern Territory: No major state-level regulations at this stage, though some local councils apply bylaws.

For homeowners with properties in multiple locations, these variations create complexity. Even within one state, councils can enforce their own rules, leaving hosts at risk of fines if they’re not up to date.

Travel demand shifts

Travel habits across Australia have evolved in recent years. While domestic holidays remain strong, the way people plan and experience their stays has changed:

• Guests are booking longer stays, often working remotely from lifestyle destinations like the Gold Coast or Hobart.
  
• Major events, from Adelaide’s AFL Gather Round to Sydney’s New Year’s Eve fireworks or Melbourne’s Australian Open, create sharp spikes in occupancy and nightly rates. In 2024, the AFL Gather Round event alone generated $113.9m in economic activity.
  
• Seasonal patterns remain strong, with Darwin’s dry season and Brisbane’s sports calendar lifting demand. Brisbane recorded over 6,000 active listings as of August 2025 (up 19% from 2024), while Darwin’s listings recorded a 14% growth in 2025 compared to the previous year.

For homeowners, these shifts mean pricing needs to be more agile than ever so they can continue to make money from Airbnbs and STRs. A static nightly rate risks leaving money on the table during peak periods or deterring bookings in quieter times.

Economic pressures

The financial backdrop is tougher than it used to be. Higher mortgage repayments and cost-of-living increases are pushing many households to seek stronger returns. In this climate:

• A single vacant week can make a real dent in monthly earnings.
  
• Underpricing during demand peaks directly reduces profit.
  
• Guests themselves are also more cost-conscious, weighing value for money against higher travel expenses.

Maximising yield has become essential, not optional.

Guest expectations

Whether or not certain amenities are included in a listing can make or break a guest booking. Prospective guests often look for:

• Premium touches, such as hotel-quality linen, styled interiors, and local recommendations.
• Seamless tech, including self-check-in, smart locks, and reliable high-speed WiFi.
• Family-friendly amenities, such as cots, high chairs, and secure outdoor spaces, make properties more appealing to travelling families.

These expectations mean homeowners must invest in the quality and presentation of their property. A dated listing without modern touches risks poor reviews and lower occupancy.

Why it’s hard for homeowners to keep up alone

Managing a short-term rental isn’t just about welcoming guests; it’s about constant adaptation. Failure to adapt to Airbnb regulation changes and market performance can result in:

• Compliance risk: Misunderstanding state or council rules can lead to hefty fines.
  
• Revenue loss: Without dynamic pricing, owners miss out on demand spikes and risk charging too much during low periods.
  
• Time burden: Market research, guest communication, and operational checks can eat into hours of your week. This can be hard to keep up with, especially if managing an STR isn’t your full-time role.

A property that once delivered strong returns can underperform if the owner doesn’t stay ahead of changes.

How to future-proof Airbnb income with the help of Hometime

A short-term rental property manager like Hometime provides the support you need to simplify and optimise every part of the STR process, including:

• Compliance support

We track state rules and local council requirements to make sure every property remains compliant and risk-free. Homeowners don’t need to decipher bylaws or worry about missing updates.

• Revenue management

Our specialised revenue team uses dynamic pricing tools and data insights to adjust nightly rates in real time. This ensures homes are competitively priced for quieter periods and capture maximum value during seasonal highs and major events.

• Guest experience upgrades

From professional cleaning, photography and property styling to listing optimisation, Hometime helps properties meet today’s guest expectations. These upgrades lead to better reviews, repeat bookings, and higher overall returns.

• Transparency and insights

Homeowners can stay in the loop through Hometime’s Owner portal, which gives them clear visibility of bookings, earnings, and performance, without having to lift a finger. 

• Stress-free management

Hometime takes on the heavy lifting. Owners don’t have to chase cleaners, monitor regulation changes, or constantly adjust pricing. They can simply enjoy the returns while we manage the details.

Real homeowner stories from Hometime

David — Potts Point, Sydney

After moving out of the city, David and Eric relied on their Potts Point apartment as a short-term rental they could come back to when visiting. Sydney’s quota system limited how many nights they could rent out, and staying compliant felt daunting.

“With short-term rental changes in state regulations, there’s this crazy quota system… Hometime manages that really well. Their reporting of financials is really good.” – David

With Hometime, David enjoys a consistent income without worrying about complex rules.

Karen — Manly, Sydney

Karen transformed her Manly unit into a short-term rental after renovations. She wanted to earn extra income but didn’t want the stress of managing bookings herself.

“It’s allowed me to get a decent income. Stress-free.. It’s been a really good experience” – Karen

Her Local Host, Jenny, ensures the property runs smoothly, from guest check-ins to styling suggestions. Karen now earns a reliable income with none of the day-to-day stress.

Hometime — the Airbnb management company in Australia you can count on

The short-term rental market will continue to change. Regulations will evolve, guest expectations will grow, and economic conditions will shift. But you don’t need to manage it alone.

With Hometime, your property stays compliant, competitive, and profitable. We make sure you’re prepared for today’s market and ready for tomorrow’s changes.

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