Short-term stays, quite the craze nowadays – whether through Airbnb or Stayz – can bring in quite a good bit of cash for many days. Is it worthwhile to transform a dual occupancy home into a short-term rental? For many, it’s either a quick “yes” or “no” answer, but it’s quite important to understand whether you can or cannot provide short-term lets to tourists or visitors before deciding if it’s right for you.
Can You Provide Short-Term Rentals to Visitors in a Dual Occupancy Home?
Owners of dual occupancy homes can provide short-stay rental accommodations (STRAs) to visitor tenants in one or both properties, however, there may be restrictions in your local council area regarding how many STRAs are permitted within their jurisdiction, how many days a tenant can stay, and more.
These restrictions vary by state and territory, but it’s safe to say that metro areas like Melbourne and Sydney tend to have more restrictions than elsewhere simply due to huge demand and limited housing supply.
What has changed quite substantially in recent years with the surge in short-term lettings is that authorities such as the Victorian government have moved towards restricting STRAs. While not an outright ban, the new levy imposed on 1 January 2025 comes with a 7.5 per cent levy as well as powers from owners corporations (if your dual occupancy properties are within a strata, for example) to vote against and ban STRAs with a 75 per cent vote against them, as well as the power of local councils to limit and control the types of STRAs permissible within their jurisdiction.
In brief, it is always strongly recommended that you consult your local council and state/territory website for further information on these matters.
Business Licensing for Short Stay Rental Accommodations (STRAs)
If you are permitted to use your dual occupancy home (one or both units), you still must abide by the law and obtain appropriate licensing and other permissions. Airbnb has some resources to assist property owners, although you will need to legally structure a business and register it with the ATO on your own or with an agent acting on your behalf.
If you intend to host a guest in a property that is your primary residence, you will likely not need to go through as much bureaucracy but you’ll still need to make sure you are abiding by the law and obtain permits when necessary.
It’s important to keep in mind, in any case, that Airbnb lettings and other STRAs can cause unwanted noise and traffic within your neighbourhood which can upset residents. Just because you can offer accommodations doesn’t mean you aren’t also, within reasonable limits, responsible for the activity of your guests. You must also provide guests with a fair service in line with Australian Consumer Laws since you are providing a service, naturally.
Taxes & Fees to Be Wary Of
New laws such as Victoria’s powers on STRAs and the 7.5% levy will inevitably make things more challenging for aspiring property owners looking to provide short-term lets. Whether or not it is still worth it is ultimately your decision to make, and it should be a decision based on reasonably accurate financial estimates and taking into account taxes, levies, and all sorts of fees (e.g. Airbnb cleaning fee) that can quickly add up and eat away at potential profits.
Trevor Homes
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