How Much Can You Earn from Airbnb in Melbourne?
/How Much Can You Earn from Airbnb in Melbourne?
If you are weighing up an Airbnb investment in Melbourne, the first question is usually the same: how much can it actually earn? The honest answer is that it depends on the property, the suburb, the styling and how well it is managed. But there are real numbers to work from.
AG & Co. manages short-term rental properties in Collingwood, Fitzroy, St Kilda and South Melbourne. Here is what we see across our own portfolio.
Typical annual turnover by property size
3-bedroom property sleeping up to 6 guests: can turn over up to $100,000 a year.
2-bedroom property sleeping up to 5 guests: can turn over up to $80,000 a year.
"Turnover" here means gross booking revenue: what guests pay before platform fees, management fees, cleaning, utilities, insurance, rates and other running costs come out. These figures are the upper end of what well-run properties can achieve, not a guarantee, and your result will depend on the factors below.
What drives Airbnb income in Melbourne
Location. Our properties sit in Collingwood, Fitzroy, St Kilda and South Melbourne, which suit visitors who want cafes, restaurants, trams and easy access to the city. Walkability and transport matter more to guests than most owners expect.
Bedrooms and guest capacity. Sleeping six guests in three bedrooms, or five in two, opens the property to families and groups, who book longer stays at higher totals than couples or solo travellers.
Styling. Every property we manage is styled to stand out. Guests choose between dozens of similar listings, and a space with its own character earns better photos, more clicks and stronger reviews. Styling is one of the few things an owner controls that directly lifts nightly rates.
Pricing and management. Rates need to move with demand, events, seasons and competing listings. A property left on a fixed price usually earns less than one priced daily. Fast guest responses, clean turnovers and a high review score keep occupancy up.
Airbnb income is not profit
Before you buy, work out your net return, not just turnover. Costs to include are management fees (commonly 15% to 25% plus GST for short-term rentals; see what Airbnb management costs in Melbourne), cleaning, linen, utilities, insurance, rates, owners corporation fees, maintenance and any loan repayments. Check the building's owners corporation rules and current Victorian short-stay requirements before you commit.
Questions owners ask us
How much can a 3-bedroom Airbnb earn in Melbourne? In our portfolio, a 3-bedroom property sleeping up to six guests can turn over up to $100,000 a year in gross revenue.
How much can a 2-bedroom Airbnb earn in Melbourne? A 2-bedroom property sleeping up to five guests can turn over up to $80,000 a year.
Which Melbourne suburbs does AG & Co. manage Airbnbs in? Collingwood, Fitzroy, St Kilda and South Melbourne.
Does styling really make a difference to income? It does. Distinctive, well-styled properties photograph better, attract more bookings and earn better reviews, which supports higher nightly rates.
Want a realistic estimate for your property?
We can look at your property or the one you are thinking of buying and give you a straight view of what it could earn. Contact AG & Co. for a free consultation, or read about our Airbnb buyer's agent service if you have not bought yet.