Can Airbnb in Brisbane Be Profitable?
Airbnb’s impact on the travel sphere over the years has created a lucrative opportunity to tap into short-term rental markets. If you have found yourself considering becoming a short-term rental host in Brisbane, there is probably one question burning in your mind: Is Airbnb in Brisbane profitable? The short answer is yes, but it’s not that simple. Like any investment, profitability can vary depending on several factors. Along with the profitability, we took some time to break down some of the most frequently asked questions about short-term property management and ownership in Brisbane.
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Is Airbnb Worth It in Australia?
It certainly can be! It is just about investing and approaching your Airbnb property management smartly. Factors like property location, amenities, the quality of your listing and the level of competition in the area can all influence your profitability. The average occupancy rate for Airbnb in Australia is typically around 60-70%, though this can vary and doesn’t reflect what properties under professional management and co-hosting can achieve. Higher-demand areas like Brisbane can achieve better occupancy rates for holiday rental investments, which for the Queensland capital is currently around 80%.
That means for many hosts, Airbnb is worth it. Especially when the property is well-managed and located in a high-demand area. Like any investment, it does require time, effort, and some upfront costs to prepare the property for guests. That’s where short-term rental management and co-hosting services in Brisbane come in handy, as they can help handle all the logistics for a commission-based fee.
How Much Do Most Airbnb Owners Make in Brisbane?
To gain a clear understanding of profitability, let's examine the average Airbnb income.
In Australia, the average Airbnb rental brings in around $5,000 per month. This roughly translates to around $60,000 annually. However, in Brisbane, the numbers differ slightly, as it can depend on the type of property and location. (If you want to know more, make sure you refer back to some of our previous articles to see more of a breakdown of those factors.)
So what are the more realistic figures? Once again, it depends on where you are in your Airbnb hosting journey. For example, if you are based in South Brisbane and own an apartment, the average figures look like:
For 1 Bedroom:
$64.4K Annual revenue potential
79% average occupancy
$214.30 average nightly rateFor 2 Bedroom:
$77.6K Annual revenue potential
75% average occupancy
$291.20 average nightly rateFor 3 Bedroom:
$116.1K Annual revenue potential
74% average occupancy
$450.40 average nightly rate
For the average house, let’s take a look at property figures in New Farm. This area genuinely attracts those looking for a short-term rental with more space, so with the right type of accommodation, the average statistics are:
For 4 Bedroom:
$147.9K Annual revenue potential
55% average occupancy
$859.40 average nightly rateFor 5 Bedroom:
$217.7K Annual revenue potential
72% average occupancy
$918.94 average nightly rate
As we mentioned, certain factors can determine the success of a property. Along with location and property type, seasonal demand plays a significant role in these figures. Having an experienced AirBnb manager can also help expand your earning potential, helping you not just improve your average occupancy but also increase your nightly rate. Especially when you engage one that specialises in Brisbane short-term rental property management. They understand how tourism events, holidays, and local festivals can impact these figures.
The great thing about Brisbane, due to the climate and draw for business visitors, it does experience a pretty steady stream of visitors throughout the year, but there will always be ebbs and flows. That is why it’s key to understand the peak seasons and have solid short-term rental management in order to take advantage of the property’s earning potential fully.
But Are There Airbnb Millionaires?
The figures we spouted above do not necessarily lend themselves to creating millionaires, but that does not mean the potential is not there, because the answer is, in fact, yes. Airbnb millionaires exist. Globally and in Australia.
As of August 2024, in Australia, the top 10 earners were profiting between AU$2-5 million in 2017 on their short-term rental portfolios. These hosts have multiple properties, prime locations, and are savvy at managing their Airbnb investments. While reaching millionaire status isn’t typical for most hosts with a single property, it shows the potential for scaling up a profitable Airbnb business or using it as an asset to form part of a wider investment portfolio.
It is also worth noting as with all real estate, property ownership provides the opportunity to benefit from long-term capital gains as property values increase over time. Short-term rentals provide a great opportunity to have a higher cash-flowing property (than traditional long-term rentals), all whilst seeing your investment value increase over the long term. As you may be aware, Brisbane is set for strong capital gains in the lead up to the Olympics and beyond.
So, where Is the Most Profitable Place to Own an Airbnb?
Queensland itself is a profitable Airbnb market. Along with the success you can achieve in Brisbane, places like the Gold Coast, Sunshine Coast and the Whitsundays are top tier locations in Australia to generate a high income with Airbnb. However, if you’re specifically interested in Brisbane, certain suburbs stand out due to their popularity with tourists and proximity to key attractions.
Best Suburbs for Airbnb in Brisbane:
South Brisbane: Known for its cultural hotspots and proximity to South Bank.
New Farm: Close to the Brisbane River, offering trendy eateries and nightlife.
Fortitude Valley: Famous for nightlife, events, and art.
West End: Booming with young professionals, cafes, and boutique experiences.
These locations consistently attract both domestic and international tourists looking for holiday rentals, providing great opportunities for Airbnb property investment in Brisbane. Again, if you would like to find out in more depth about the best locations to invest in Brisbane, then check out our blog about the Best Investment Suburbs For Airbnb in Brisbane.
I Already Own A Property, So Can I Airbnb My Unit in Brisbane?
The short answer is likely yes, but as always, it depends.
If you are thinking of renting out your unit, the answer largely depends on your building’s regulations and local council rules. In Brisbane, you’ll need to check whether your property is in a zone that allows short-term rentals, without development approval. Furthermore, some apartment complexes or strata-managed buildings might have restrictions on short-term letting, so it’s crucial to review any by-laws or seek approval from the body corporate before listing your property on Airbnb.
Be sure to explore the Brisbane City Council City Plan and check what zone your property falls under.
If you can rent your unit, there are plenty of Airbnb management services in Brisbane that can assist with everything from guest communication to cleaning. Airbnb co-hosting services are also available to help you maximise your rental income while managing the day-to-day operations.
How Many Airbnbs Are There in Brisbane?
As of recent data, there are over 6,000 active listings in Brisbane. The number fluctuates based on market demand, owner usage and seasonal changes. While these numbers are highly competitive, Brisbane has quite a varied market, so it is possible to find your niche and what works for you.
Does That Mean That Airbnb Is Still a Good Way to Make Money?
All in all, Airbnb hosting in Brisbane can be a very profitable venture. It all comes down to strategy. The world of Airbnb property management can be hands-on, so with the right approach, along with the support of a professional management and co-hosting service in Brisbane, you can maximise your income.
As the market continues to thrive, Brisbane remains one of the best cities for short-term rental management in Australia, offering steady returns for hosts. Holiday stays and short-term rentals for work in Brisbane are always in hot demand.So, if you're ready to dive into Airbnb in Brisbane, make sure to research the best Airbnb suburbs in Brisbane and consider professional management and co-hosting services to ensure a smooth operation and a healthy profit.
How Do I Get Started?
If you are looking to break into the short-term rental market, here are the steps you can take to start your portfolio:
Decide whether you are going to purchase a property specifically for this use, or utilise one that you already own.
To put your best foot forward, ensure that the property is furnished and decorated to a high standard.
To really take advantage of this and enhance your listing, hire a professional airbnb or real estate photographer.
List your short-term rental across various platforms such as Airbnb, Booking.com, etc. That way you can reach a wider market of people looking for holiday stays.
So you know you are not leaving any money on the table, implement and consistently adjust your pricing strategy.
For cleaning, either recruit a professional team or company, or decide on whether you will be handling this yourself. Remember, cleanliness will impact reviews and future bookings, so you want to make sure it is up to a high standard.
Go that extra mile and create a property handbook, that way those common enquiries that guests may have will be handled without the need for too much extra communication. Also it just makes it easier for guests, something they will be grateful for, especially if they are using your property for a holiday rental.
Welcome your guests. Add that level of personal connection to ensure that your guests feel comfortable.
If you need help with any of these steps or just want to know you are on the right track, then enlist the help of a short-term or Airbnb manager like Hacienda BnB Property Management. Give yourself the best chance that your short-term rental property in Brisbane is as profitable as possible.
