Why Short-Term Rentals are Becoming More Appealing

If you’re a property owner, you may have heard of the recent changes to rental laws in NSW. As the final laws come into effect in the first half of 2025, more landlords with long term tenants are considering shifting their property to a short-term rental - and for good reason.

The benefits of short-term rentals are continuing to outweigh long-term rentals as state laws impose more regulations on landlords.

Since October 2024, these two changes have come into effect:

• Rent increases can only be made once per year for all leases. Previously, only periodic leases and fixed-term leases of 2 or more years had this rule.
• Tenants must not be charged any additional fees when searching for, applying for or starting a tenancy. This includes fees for background checks and preparing tenancy
  agreements.

In the first half of 2025 the following laws will be introduced (dates to be confirmed):

• Ending a tenancy: Landlords will need a reason to end periodic and fixed-term leases, providing evidence alongside a termination notice. Penalties will be payable by landlords who give a reason that isn’t genuine.
• Notice for ending tenancy: The amount of notice a renter must have before their lease ends in fixed-term leases increases from 30 days to 60 days (if the lease is 6 months or less), or 90 days (if the lease is more than 6 months).
• Pets: It will be easier for renters to keep pets. A renter will apply to keep a pet, and the landlord can only decline for certain reasons.
• Payment of rent: Landlords will be required to provide a free, electronic way to pay rent that doesn’t attract additional fees for the renter.

What does this mean?
If you’re a property owner or investor who wants more control over your assets - it’s time to consider making your property a short-term rental. Short-term rentals allow for more flexibility and potential for higher rental yields using a dynamic pricing model (especially in the peak holiday periods).

Per night pricing and seasonal price adjustments can boost your rental yield, as opposed to fixed rent pricing. Given the nature of short-term renting, you can easily set aside dates where you may use the property without disrupting any tenants. With a trusted management agency like Guest Realty managing your property, you can expect seamless and hassle-free experiences for yourself and your guests.

At Guest Realty, we pride ourselves on delivering completely hands-free experiences for our property owners, while ensuring memorable experiences for guests.

Should you wish to discuss your property, Contact Us