Why short-term rentals beat long-term rentals for Sally
Sally put one studio apartment on a long-term lease and the other on a short-term with uHoliday. Fees dropped from half her income to under a third, and she kept more than $40,000.




About the Homeowner
Sally rented her holiday home from 2011 to 2018, when she and her husband ran a beachfront home in Casuarina. So when they bought two studio apartments in the same town, they didn't guess which way to rent them. They ran a test.
They bought both for $340,000 each. The agent told them a permanent lease would bring about $700 a week, which sounded decent for the price. So they put one unit on a long-term lease, the other on the short-term market, and gave it 12 months.
They broke the rules on the fit-out too. The on-site manager wanted owners to buy the building's standard furniture package. Sally said no, brought in a local interior designer and spent about $30,000 turning the studio into something a couple would choose on purpose: a king-size four-poster bed with curtains, styled to suit the building's Bali theme, and aimed squarely at couples rather than families.
The goal: find out which letting model earns more, and give guests a stay worth paying a premium for.
The Challenge
Sally started with the building's on-site management company, and six months in, the spreadsheet told a different story from the one she was being sold. The occupancy looked strong. The nightly rate didn't.
She faced:
- Discounts landing on peak nights. Discounted package rates were being sold on peak-season nights, the ones that should have paid for the year.
- Half her income going out. Fees, cleaning and management ran at about 50% of all income.
- No say over bookings. She couldn't choose which stays went into her apartment, and guests couldn't choose it either, so the $30,000 fit-out was sold at the same price as every other unit in the building.
- One-night stays. The changeover costs the same for one night as for seven, so short stays barely covered the cleaning.
- Nobody on the ground. A storm leaked water into the apartment. The building managers cleaned the unit next door without telling Sally hers had been hit, and sent owners a blanket email asking them not to ring because they were busy.
How uHoliday helped
A friend recommended Daniel, who runs uHoliday on the Tweed Coast, and lives two doors down from Sally's building. With Daniel looking after the apartment, Sally got:
- Pricing built around the nightly rate: no discounting to chase occupancy, and no package deals eating peak season.
- Three-night minimum. Sally had been getting one-night bookings she couldn't refuse, with changeover costs on every one. That stopped.
- Someone on the ground: after the storm, Daniel checked every property he manages, including Sally’s, and told each owner what needed doing before they'd thought to ask.
- Issues handled for her. Daniel unpacked a hanging chair, found it damaged and sent photos to Sally the same day. He picked up a TV with lines through it after a guest mentioned it and got it sorted. She approves, and that's the end of it.
The Results
I'm sort of a typical A-type personality where I have to control everything. But I don't with Daniel. I just set and forget."
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