Where the money goes
| Item | Long term | Short stay |
|---|---|---|
| Revenue basis | Fixed monthly rent | Nightly rate multiplied by occupancy |
| Utilities | Usually the tenant | Almost always the owner |
| Furnishing | Optional | Required, with replacement cycles |
| Cleaning and linen | At turnover only | Every changeover |
| Platform commission | None | Typically 12% to 18% of revenue |
| Management fee | Roughly 7% to 10% of rent | Roughly 15% to 25% of revenue |
| Income stability | High while tenanted | Seasonal and demand dependent |
A short-stay unit frequently produces 40% to 80% more gross revenue than the same unit let long term, and gives back much of that difference in commission, cleaning, utilities, furnishing replacement and management. Compare the two on net cash flow, never on gross revenue.
The assumptions that decide it
Occupancy is the assumption that most often breaks a short-stay projection. Annual average occupancy for a well-run urban unit typically sits between 50% and 70%, not the peak-season figure. Average length of stay matters almost as much, because every stay carries a changeover cost.
Compliance and scheme rules
Short-stay letting is constrained by municipal by-laws and, in sectional title, by the scheme's conduct rules. Many bodies corporate restrict or prohibit short-term letting. Confirm what is permitted before you furnish the unit, not after.
A workable decision rule
- Model both operating models on the same property with honest assumptions.
- Confirm short stay is permitted by the municipality and the scheme.
- Price in furnishing capital and a replacement cycle.
- Choose long term unless short stay wins clearly on net cash flow after all of the above.
Professional tips
- • Work out the break-even occupancy at which short stay matches long term.
- • Price in furniture replacement on a three to five year cycle.
- • Confirm municipal by-laws and body corporate conduct rules in writing.
Common mistakes to avoid
- • Comparing short-stay gross revenue against long-term net rent.
- • Using peak-season occupancy as an annual average.
- • Furnishing a unit before confirming the scheme allows short-term letting.
Frequently asked questions
Does short stay always earn more?+
What occupancy should I assume?+
Can a body corporate stop short-term letting?+
Key takeaways
- Compare net cash flow, not gross revenue.
- Short stay carries commission, cleaning, utilities and furnishing that long term does not.
- Annual average occupancy, not peak occupancy, decides the outcome.
- Confirm municipal by-laws and scheme rules before committing.
- If the two models are close, the lower-effort model is usually the better one.
Model it for your property
Run the numbers with our free calculators.
References
About the author
BookingLoop Advisory
Property performance desk
Our performance desk assesses income-producing residential property, testing rental assumptions, running costs and operating models before an owner commits capital.
Published 24 January 2026 · Last updated 3 February 2026
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