Ultimate guide on how to start an Airbnb business in Australia

Getting started with Airbnb opens up exciting opportunities, whether you're looking to rent out an investment property or share your own home. With more Australians choosing to travel domestically, now is a great time to enter the short-term rental market.

But setting up your first Airbnb can prove to be tricky, since there's a lot of to take into account: this includes understanding the different Airbnb rules per state and city, managing fees, and setting up your property and your Airbnb listing — and this is just taking the primary setup into account. Once your listing has gone live, you'll also need to work on marketing your Airbnb and managing guest communication, as well as routine tasks like Airbnb cleaning and property maintenance/management.

To make things simpler, we'll walk you through the key factors that help set your property up for success.

How to start an Airbnb business in Australia for the first time

1. Check local rules for Airbnbs and short term rentals

Before you start setting up an Airbnb, you should do your research first on what local Airbnb rules in Australia apply to your property: this includes whether short term rentals are allowed in your area in the first place, and what regulations apply to short term rental owners. You'll also need to check what permits you need to get, what taxes apply, and what safety standards your property needs to follow.

Make sure you understand and meet all legal requirements. Note that Airbnb rules in Australia are different between each state, and that local laws may vary from state laws. It's best to visit your local council and meet with any relevant authorities before you launch you start your Airbnb business in Australia. Check your local council's website for current regulations about:

• Fire safety - You'll need working smoke alarms, fire extinguishers, and clear emergency exit information. Many areas also require regular safety inspections and compliance certificates.
• Insurance - Standard home insurance often doesn't cover short-term rentals, so speak with your insurer about appropriate coverage. Airbnb offers some protection through their AirCover program, but many hosts choose additional landlord insurance for better protection.
• Create a safety guide for your property, covering emergency contacts, evacuation procedures, and the location of safety equipment. Store a copy in the property and send digital versions to guests before their stay.

2. Setting up your Airbnb

Once you've obtained the relevant permits, you can start setting up an Airbnb. But how do you set up an Airbnb, and what exactly makes for a good Airbnb property? Here are some factors to consider that can give you the edge:

Understand what makes your location special

Your property's location shapes everything from your target guests to your pricing strategy. City properties often attract business travellers and tourists eager to explore local attractions, while coastal or rural properties might draw families or groups planning longer stays.

Recent research from Tourism Research Australia shows regional areas are seeing an increase in both overnight trips and spend in recent years. This trend means opportunities exist beyond traditional tourist hotspots.

Consider what makes your location special. Are you near popular restaurants or shops? Close to public transport or walking distance to attractions? Maybe you offer a quiet retreat from the city? Understanding and highlighting these benefits helps potential guests picture themselves staying at your property.

Setting up an Airbnb suited for remote work 

The way people travel has changed, with many guests now looking for properties that work as both a holiday spot and a temporary office. Remote workers make up a significant market of domestic travellers in Australia ,so it's important that your create an accommodating property for them.

A good work setup doesn't need much space - even a small corner can work well with the right planning. Start with fast, reliable internet and make sure you know the actual speeds - this is often the first thing remote workers check. A comfortable desk and chair, good lighting for video calls, and plenty of power points make a big difference. Consider extras like a monitor or basic office supplies to help your property stand out.

Parking and transport 

With domestic road trips becoming more popular, secure parking has become a major selling point. If you have private parking, explain the setup clearly - is it a garage, carport, or street parking? What size vehicles does it fit? For properties without dedicated parking, research and share details about nearby options, including costs and any local restrictions. Information about public transport can also help guests plan their stay.

Pet-friendly Airbnbs

You should also be asking yourself if making your Airbnb pet-friendly would be worth it. Though setting up your Airbnb to be friendly does open up your property to a wider market, there are also other considerations like more expensive and more frequent cleaning. To make an informed decision, read more about the pros and cons of pet-friendly Airbnbs with our guide.

Furnish your property with essentials and modern conveniences

Your furnishing choices matter too when you're setting up an Airbnb. While you don't need expensive designer pieces, thoughtful styling helps create a welcoming atmosphere. Think about your target guests - business travellers might prefer minimal, practical spaces, while holiday makers often enjoy homey touches. Quality bedding, comfortable seating, and good lighting make a big difference to the guest experience.

Today's guests also expect certain amenities. A smart TV with streaming services, reliable Wi-Fi, and a well-equipped kitchen are often must-haves. Consider additions like a coffee machine, portable speakers, or USB charging points - small touches that guests remember and mention in reviews.

Smart home features can also improve the guest experience while making management easier. Digital locks allow secure self check-in, while smart thermostats help manage energy use. Just make sure to provide clear instructions for using any tech features.

Different rooms require different amenities - read our furniture guides below for more information:

• How to buy and maintain furniture for your Airbnb
• Kitchen essentials list for vacation rentals
• Choosing linens, pillows, and more for your Airbnb's bedrooms

3. Creating your listing 

Your Airbnb listing is your chance to showcase your property and set clear expectations. A compelling title should highlight your best features while staying honest - for example, "Bright corner apartment with harbour views and home office" tells potential guests much more than "Two-bedroom apartment in Sydney".

Write your description as if you're showing someone around in person. Help them imagine their stay by explaining the layout and pointing out special features. Remember to update your listing regularly to keep information current, especially details about amenities or local attractions.

Our step-by-step guide on how to create an Airbnb listing shows you detailed steps on the process, but here are other things you need to consider:

Make your property stand out with good photos

While professional photos are essential - leading to an average increased yearly revenue of $2,455 per unit - there's more to consider. Think about what makes your property unique. Maybe it's the amazing sunset views, a beautifully renovated kitchen, or a peaceful garden. Focus on these features in your photos and description.

Get your pricing strategy right 

Getting your pricing right takes research and regular adjustments. Start by looking at similar properties in your area - consider location, size, amenities, and their review scores. Properties with great reviews often command higher rates, so you might want to start slightly lower while building your reputation.

Consider seasonal changes too. Coastal properties often see rate increases during summer holidays, while city properties might charge more during major events or conference seasons. School holidays, local festivals, and even sporting events can affect what guests will pay too.

Don't forget to factor in your costs. On top of your mortgage payments and bills, consider:

• Regular cleaning and maintenance
• Replacement of linens and supplies
• Insurance premiums
• Platform fees
• Emergency repairs

Our guide on crafting a balanced pricing strategy shows you what things to consider when you're considering how much to price your Airbnb.

Many successful hosts use dynamic pricing, adjusting rates based on demand. For example, you might offer better rates for longer stays or increase prices during peak periods. Keep an eye on local events and adjust your rates accordingly.

Marketing your Airbnb

Marketing is also an essential factor to consider when setting up an Airbnb, since it gives you access to a bigger audience and allows you to have direct contact with potential guests. Creating an effective marketing strategy, both on social media and in-person, can help you get set up for success.

4. Managing guest communication

Once you've finished setting up an Airbnb listing comes the time to working with guests. This involves not only managing booking requests, but also handling any enquiries about the property and helping them with any concerns during their stay.

Quick, friendly responses to enquiries often make the difference between securing a booking or losing it to another property. Set aside time each day to handle messages and booking requests. Being upfront about things like check-in times and house rules helps avoid misunderstandings later.

Hometime's guide on automated Airbnb messages can help reduce the manual workload involved with talking to guests, with different templates for different scenarios.

5. Airbnb cleaning and maintenance

A final tip for those asking how to start an Airbnb business in Australia: regular Airbnb cleaning and property maintenance will happen more often than you think it will. So it's important that you work with people you trust - people in your area who do the work well, but without breaking the bank.

Learn how to set up an Airbnb for success with Hometime

While setting up an Airbnb can be rewarding, managing every aspect of your property takes time and energy. At Hometime, we understand the challenges property owners face, which is why we offer end-to-end Airbnb management services in Australia to help your property succeed.

Our team handles everything from professional photography and listing creation to guest communication and maintenance. We use data-driven pricing strategies to maximise your returns, coordinate reliable cleaning services, and ensure your property always meets the highest standards.

You'll get regular updates about your property's performance, but won't need to worry about middle-of-the-night guest messages or coordinating cleaners between stays. Our local property specialists know your area well and can help showcase its best features to potential guests.