Melbourne Short-Term Rental Market Report

Thanks to its reputation as a cultural capital, Melbourne attracts steady visitor numbers each year, making it Australia's second-largest tourist destination behind Sydney. Both domestic and international travellers flock to Melbourne to experience local sightseeing and partake in various events like festivals and concerts, which makes it an attractive market for tourism and accommodation investors.

Learn about how short-term rentals in Melbourne are performing and travel trends in the market below:

Key Highlights

• Demand for short-term rentals in Melbourne ae increasing, even with higher supply
• Average daily rates fluctuate around major events, with the Australian Open and the Formula 1 Australian Grand Prix leading to the largest influxes
• Famous international artists, such as Taylor Swift's tour, cause surges in demand for short stays in Melbourne
• Homeowners in Melbourne can continue to expect similar event-related fluctuations in 2025
• Hometime homes in Melbourne outperformed the local market, with a +21% lead in occupancy rates from FY23-24

Melbourne Short-Term Rental Market Report

1. More demand for short-term rentals in Melbourne

Despite higher supply, market occupancy of short-term rentals in Melbourne increased in the last financial year compared to the year prior. This shows there is a growing demand for short stays in the region.

Hometime tip: Our data reveals that high-quality and well-presented properties outperform the rest of the local short-term rental market and are booked consistently throughout the year. Check out our guide on best practices for styling your short-term property:

To learn more about how you can boost your property's value and appeal, you can also get in touch with us directly.

2. Average daily rates for Melbourne short-term rentals peak around events

Average daily rates (ADRs) in Melbourne typically fluctuate around major events in the city. Two major events that consistently draw a large influx in demand every year are the Australian Open in January and the Formula 1 Australian Grand Prix in March.

Large international artists also cause surges in demand, as seen in February FY24 when ADRs increased thanks to Taylor Swift’s Eras Tour stopping in Melbourne.

3. Melbourne is buzzing with events year-round

From Grand Slam tennis and prestigious racing events to international artist concerts, there is always an exciting event happening in Melbourne, drawing in big crowds each time. Homeowners of short-term rentals in Melbourne can plan around these events to boost revenue.

Why Hometime works for Airbnb management in Melbourne

1. Hometime homes in Melbourne have above-market occupancy rates

Hometime-managed short-term rentals in Melbourne consistently outperform the rest of the market. We achieve this with our expert in-house listing optimisation and pricing teams, who make sure your home is as bookable as possible.

2. Data-driven insights for optimal dynamic pricing and boost property value

We use dynamic pricing algorithms that automatically fine-tune nightly rates based on real-time market fluctuations, including increased demand during holidays and events. This not only eliminates any market research on your end, but also maximises returns while maintaining high occupancy rates, helping you earn more.

Hometime's data can also give you insights on how to further improve your short stay property in Melbourne and increase its value:

• Which areas in Melbourne are most popular during which times of the year
• What amenities the most popular Airbnbs in Melbourne have
• What you can add to your short-term rental in Melbourne to increase its booking appeal, leading to an increase in occupancy rates and nightly rates

3. Top-quality guest communication to help you get great reviews

Hometime is a trusted Airbnb management company in Australia that delivers quality results to both short-term rental owners and Airbnb guests. See how people feel about our Airbnb property management and guest management services in Melbourne.

1 million+

nights booked across Australia

4.7/5

average guest rating on Airbnb

3,500+

properties managed since 2016

Hometime uses its very own property management software that can do it all — from managing bookings, guest management, and even coordinating Airbnb cleaning services. We also offer a dedicated booking platform for guests to increase your visibility, drive more bookings, and rental returns even further.

4. Dedicated local Airbnb managers in Melbourne

We’ll connect you with experienced local co-hosts with years of experience in the short-term rental market in Melborune and have welcomed many guests to the area. They will be your first point of contact and will manage everything related to your home, from managing bookings, communicating and vetting guests, and assisting them with any concerns.

What does Hometime’s Airbnb management in Melbourne include?

Our full-service property management solutions in Melbourne are designed to maximise your earnings and guest satisfaction with these dedicated services:

• Property onboarding:
  We’ll help you set up your short-term rental as quickly as we can so you can start getting bookings ASAP.
• Listing optimisation:
  Our team constantly works on improving your listing through great content showcasing the best of the property with high-quality professional photos, and creating detailed guides for your guests. This includes property styling and photography to make your Airbnb stand out and to maximise its appeal.
  
• Dynamic pricing strategy:
  Hometime’s pricing analysts and market experts will help optimise your revenue while increasing occupancy at the same time.
  
• Airbnb cleaning services:
  We’ll find the best cleaners in Melbourne to look after your home, whether it’s for regular cleans, deep cleans ready for peak season, or even restocking essentials. We use the built-in cleaning fee from the booking, so there’ll be no need to pay for it out of pocket.
  
• Guest communication and management:
  We go the extra mile to ensure your guests enjoy every part of their stay, from making the booking, checking in, checking out, and everything in between. This includes taking care of maintenance issues quickly, providing alternatives for late-night arrivals, and even meeting them in person when needed!
  
• Property maintenance:
  Hometime’s local Airbnb experts will sort out all your maintenance needs to make both you and your guests happy. We’ll also do our best to get you the best rates for services in the area due to our close relationships with local businesses.

Ready to see what Hometime’s Airbnb management in Melbourne can do for you? Leave us your details and we’ll be in touch about your short-term rental in Melbourne.