Is Short-Term Rental Investment the Right Choice for Your Northern Beaches Property?

When it comes to property investment, choosing between short-term rentals and long-term leases can be a tough decision, especially in the highly sought-after Northern Beaches. This coastal region is known for its relaxed lifestyle and natural beauty, which attracts both holidaymakers and permanent residents. So, which option is better for your rental return?

Let’s discuss the pros and cons of both short-term and long-term rentals, and let this help you come up with strategic investment decisions.

Short-Term Rentals: Higher Returns, Higher Maintenance

Short-term rentals, such as those listed on Airbnb, can be appealing for properties in prime tourist spots. Earning a few hundred dollars a night during the busy holiday season sounds ideal. But before you go into short-term letting, there are a few important considerations.

1. More Work and Costs:
   A short-term rental requires regular attention and maintenance. You’ll need to clean and maintain the property after each guest’s stay, which leads to faster wear and tear. You’ll also be responsible for providing furniture, linen, and utilities like electricity and internet, adding to your running costs.

2. Higher Management Fees:
   Managing a short-term rental yourself can be overwhelming, so many landlords opt to hire a property manager. However, the fees for short-term management are usually much higher than for long-term rentals. If you're considering this route, be prepared for increased costs compared to using a traditional property manager, like us at Greycliffe Property.

3. Location Matters:
   To make a short-term rental work, the property needs to be in an excellent location. The Northern Beaches is known for its beautiful scenery, but not every property is conveniently located. Proximity to public transport is a key factor, and unfortunately, the Northern Beaches don’t have the best transport links compared to other parts of Sydney. If your property isn’t within easy reach of key amenities, you may struggle to attract short-term guests.

4. Strata Restrictions:
   The NSW Government is “undertaking a review of the regulatory framework for short-term rental accommodation (STRA) in NSW.” If your property is part of a strata scheme, you might not even be able to offer it for short-term stays. Some strata by-laws prevent short-term accommodation in unit complexes. Strata schemes can adopt by-laws banning short-term rental accommodation, but only for lots that aren't the host’s principal residence. Be sure to check your property’s strata rules before planning any short-term rentals.

Long Term Rentals: Stability and Less Hassle

Long-term rentals offer a more stable and hands-off approach to property management. Here’s why many Northern Beaches landlords prefer this option.

1. Less Wear and Tear:
   With a long-term tenant, your property will experience less wear and tear. You won’t have to worry about frequent deep cleans or replacing damaged items. Plus, most long-term rentals are unfurnished, so tenants bring their own furniture and belongings, which reduces your initial investment.

2. Fewer Interruptions:
   Long-term rentals are far less demanding in terms of management. You won’t need to deal with guest check-ins and check-outs, or constant maintenance requests. Tenants are responsible for setting up their own utilities, including electricity, internet, and water, so your involvement is minimal.

3. Consistent Income Flow:
   The biggest advantage of long-term rentals is the reliable income stream. Once you secure a tenant, you can expect a steady rent payment over 6, 12, or even 18 months. For landlords seeking returns that can be predicted, long-term rentals tend to be more secure than short-term options, where vacancy rates can fluctuate.

4. Simplicity and Fewer Regulations:
   Managing a long-term rental is generally more straightforward than navigating the rules around short-term lets. In some areas, there are restrictions on how many nights per year you can rent out a property for short-term stays, and these rules can change. Long-term rentals aren’t subject to these regulations, making them a more straightforward option for landlords.

What’s the Best Option for Your Northern Beaches Property?

The choice between short-term and long-term rentals depends on your priorities and how much involvement you want in the day-to-day running of the property.

• Short-Term Rentals are a great option if you want the flexibility to use the property yourself, or if it’s in a prime location close to beaches and public transport. Just be prepared for more work and higher costs.

• Long-Term Rentals are the way to go if you prefer a hands-off, reliable income with fewer headaches. You won’t have to worry about regular turnovers or keeping the property constantly guest-ready.

At Greycliffe Property, we specialise in managing long-term rentals on the Northern Beaches. Our focus is on ensuring that your investment delivers consistent profit without the hassle of daily upkeep. 

Ready to Invest? 

Leaning towards short-term or long-term leasing, it’s important to choose what aligns with your lifestyle and goals. Contact us at Greycliffe Property, and we’ll help you select the best options for your Northern Beaches investment.