Comparing Long-Term vs Short-Term Rentals: A Guide for Queensland Property Owners

Comparing Long-Term vs. Short-Term Rentals: A Guide for Queensland Property Owners

As a property owner in Queensland, deciding whether to opt for a long-term or short-term rental model is a crucial choice that will affect your income and time commitment. Recent changes to tenancy laws in Queensland, including updates on rent increases and bond management, make this decision even more impactful. By understanding these key differences and how the new legislation affects each option, you can make a better-informed choice for your property.

Key Differences Between Long-Term and Short-Term Rentals

1. Income Potential

•Long-Term Rentals: Typically provide steady, predictable income with tenants signing leases for 6 to 12 months or more. While the rental income may be lower than short-term rentals, the stability of consistent payments can be appealing, especially if you prefer less fluctuation.

•Short-Term Rentals: Can generate higher income, especially in tourist-heavy areas, as nightly rates often surpass the returns from long-term leases during peak seasons. However, income can vary significantly based on occupancy rates and seasonality.

2. Occupancy and Vacancy Rates

•Long-Term Rentals: Tend to offer stability. Once you secure tenants, vacancies are rare, meaning less worry about marketing or finding new tenants during the lease period.

•Short-Term Rentals: Fluctuate more, with higher occupancy rates during holiday seasons but potential gaps during off-peak times. This requires active management and marketing to maintain a steady flow of guests.

3. Management and Time Commitment

•Long-Term Rentals: Require less daily involvement. Once the lease is in place, your primary tasks revolve around maintenance and tenant communication, making it ideal if you want a more hands-off approach.

•Short-Term Rentals: Involve more frequent management tasks, including guest turnover, cleaning, and booking management. However, the flexibility of using the property yourself during vacant periods can be a significant benefit.

Recent Changes to Queensland Tenancy Laws

In June 2024, Queensland introduced significant rental law changes that impact both long-term and short-term rental strategies. Key updates include:

•Rent Increases: Rent can now only be increased once every 12 months, and this applies to the property, not just the individual tenancy. This means even if a new tenant moves in or the ownership of the property changes, the 12-month rule still stands  .

•Bonds: All bonds, including those for short-term and rooming accommodation agreements, must be lodged with the Residential Tenancies Authority (RTA) within 10 days of receipt  .

•Rent Bidding Ban: Rent bidding has been banned, meaning you cannot solicit or accept offers above the advertised rental price. This applies to both long-term and short-term rentals .

These changes offer more stability to tenants but also impose stricter regulations on property owners, particularly in managing rent increases and bond lodgement.

Which Rental Strategy is Right for You?

If you prefer stability and lower involvement, long-term rentals may suit your needs best. The predictable income and minimal day-to-day management make it a more hands-off approach, especially when combined with the protections provided by Queensland’s tenancy laws.

On the other hand, if you’re looking to maximise your income and don’t mind a more hands-on approach, short-term rentals could provide greater financial rewards, particularly in high-demand areas. The flexibility to use the property yourself when needed and adjust rates based on demand is another perk.

Cameron Real Estate: Your Partner in Property Management

At Cameron Real Estate, we understand that managing rental properties, whether long-term or short-term, can be overwhelming. With the recent legislative changes, having the right expertise on your side is more important than ever. We offer comprehensive property management services for both long-term and short-term rentals, ensuring compliance with Queensland’s tenancy laws while maximising your property’s potential.

Our team can handle everything from tenant screening, rent collection, and maintenance for long-term rentals, to guest bookings, cleaning, and marketing for short-term holiday rentals. With our expert guidance, you can enjoy the benefits of property ownership without the hassle.

Contact us today to find out how we can tailor our services to meet your needs and help you make the most of your investment.