How much can you earn from Airbnb in Australia?

How much can you earn from Airbnb in Australia?

This is a guest post by James Pointon for Open Agent.

 

There are many reasons why you might be interested in becoming an Airbnb host. Whether you’re looking for more financial freedom or you want to meet new people from around the world, Airbnb is a great option for many Australians. You have the option of turning your house, granny flat, apartment or spare room into an Airbnb.

 

With thousands of Airbnb hosts in Australia, you might be wondering, how much money can you make from Airbnb? Of course, the earning potential will depend on a variety of factors such as property type, demand and location. We’ve crunched the numbers based on data from AirDNA to compare where you can earn the most across Australia’s capital cities.

 

1. Hobart, TAS

  • 1,211 active rentals
  • 830 active hosts
  • Average daily rate: $208
  • Occupancy rate: 77%
  • Monthly revenue: $3,740
  • Annual rental growth: 53%
  • 77% of rentals are entire homes

 

With an average monthly revenue of $3740 in Hobart over the past month, it beats the other capital cities by far. Hobart also has less active rentals compared to other capital cities with 1,211. However, at 77%, it has the highest occupancy rate. The high occupancy rate along with high average daily rate play a major role in the winning earning potential.

 

Hobart actually also has the lowest median house price compared to other capital cities in Australia. Currently, it sits at $470,000, tied with Adelaide. Hence, if you’re looking to buy an investment property to use for Airbnb, Hobart is a great location. There are also fewer Airbnb hosts to compete with, making it easier for you to stand out.

 

2. Sydney, NSW

  • 29,367 active rentals
  • 19,694 active hosts
  • Average daily rate: $230
  • Occupancy rate: 65%
  • Monthly revenue: $2,965
  • Annual rental growth: 35%
  • 64% of rentals are entire homes

 

Unsurprisingly, Sydney sits near the top of the list with an average monthly revenue of almost $3000. However, Sydney also has the highest number of active rentals as well as active hosts. This means that you will have to work harder to stand out from the crowd, especially since the occupancy rate is only 65%.

 

3. Melbourne, VIC

  • 22,361 active rentals
  • 12,932 active hosts
  • Average daily rate: $193
  • Occupancy rate: 67%
  • Monthly revenue: $2,939
  • Annual rental growth: 38%
  • 70% of rentals are entire homes

 

As another popular capital city, Melbourne follows closely behind Sydney with potential earnings also sitting close to $3000 a month. In fact, earnings from Airbnbs in Melbourne actually exceed those in Sydney depending on the month. The occupancy rate and annual rental growth are also similar in both capital cities, fluctuating back and forth.

 

4. Adelaide, SA

  • 3,550 active rentals
  • 2,471 active hosts
  • Average daily rate: $188
  • Occupancy rate: 67%
  • Monthly revenue: $2,886
  • Annual rental growth: 48%
  • 66% of rentals are entire homes

 

Adelaide comes in fourth with overall stable figures. Not too far away, the city of Mount Gambier has shown significant growth. There has been a 202% increase in bookings year-on-year. Though the average monthly revenue over the past month is lower at $2265, you might be interested in Mount Gambier for its growth if you’re considering SA.

 

5. Canberra, ACT

  • 1,108 active rentals
  • 778 active hosts
  • Average daily rate: $157
  • Occupancy rate: 72%
  • Monthly revenue: $2,614
  • Annual rental growth: 47%
  • 58% of rentals are entire homes

 

The capital city of Australia has one of the lowest numbers of active rentals and active hosts. With a similar daily rate and occupancy rate to Adelaide, you can be making a similar amount as well. The average monthly revenue for Canberra over the last month has been $2,614.

 

6. Perth, WA

  • 5,490 active rentals
  • 3,553 active hosts
  • Average daily rate: $140
  • Occupancy rate: 75%
  • Monthly revenue: $2,256
  • Annual rental growth: 28%
  • 64% of rentals are entire homes

 

Though Perth has the lowest percentage of annual rental growth at 28%, it also offers a stable occupancy rate of 75%. Since the occupancy rate is so high, you can be making around $2,256 a month despite Perth having the lowest average daily rate compared to the other capital cities in Australia.

 

7. Brisbane, QLD

  • 6,912 active rentals
  • 4,367 active hosts
  • Average daily rate: $150
  • Occupancy rate: 67%
  • Monthly revenue: $2,083
  • Annual rental growth: 45%
  • 59% of rentals are entire homes

 

Brisbane sits low on the list compared to other capital cities. However, the potential earnings for the nearby Gold Coast region are significantly higher, comparable to the likes of Hobart, Sydney and Melbourne. Hence, if you’re considering buying an investment property in Queensland that you can turn into an Airbnb, Gold Coast might be a better option.

 

On the other hand, the median house price in Brisbane is significantly lower than other areas in Australia. For instance, the median house price in Sydney is $925,000, whereas in Brisbane, it’s almost half the price at around $525,000. Therefore, though the monthly revenue with Airbnb may be lower compared to the Sydney, the barrier to entry is lower.

 

8. Darwin, NT

  • 415 active rentals
  • 305 active hosts
  • Average daily rate: $151
  • Occupancy rate: 60%
  • Monthly revenue: $1,596
  • Annual rental growth: 44%
  • 62% of rentals are entire homes

 

Though Darwin has the lowest potential monthly revenue, the amount can still make up a significant portion of your income. Plus, with Darwin having the least amount of active rentals and active hosts, it makes it easier for you to make your space stand out against other Airbnbs.

 

These numbers are definitely attractive, proving why so many people choose to make an income from Airbnb. However, it’s important to note that there are many other fees, taxes and regulations in Australia for short-term holiday letting that you’ll have to take into consideration.

 

If you have spare space that you make into an Airbnb, it can definitely make you a considerable side income in Australia. Many people even make a full-time income through Airbnb, especially if they have more than one listing. You might even consider Airbnb for your investment property over finding long-term tenants.

 

Guest author: James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.

 

TFC Disclaimer: Guest posts are posted in good faith. I cannot attest to the originality of each article. If you have any concerns about the content, please contact the author of the article outlined above.

Posted in Finance, Guest Posts.

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