Short-Stay vs Long-Term Rental: A Perth Landlord's Returns Comparison Guide (2026)

A well-run Perth short-stay property typically generates 20 to 50 percent more net operating income than the same property under long-term rental, particularly for coastal, city-fringe and character-driven properties. Poorly-run short-stay properties can underperform long-term rentals. The comparison depends on genuine like-for-like net calculations that account for platform fees, cleaning coordination, higher utilities, insurance differentials, and vacancy management on the short-stay side, and on management fees, vacancy allowance and repairs on the long-term side.

If you own a Perth property, you have three basic operational choices: keep it for personal use, let it as a long-term rental, or operate it as a short-stay rental. This article covers the third choice against the second: how do short-stay returns actually compare to long-term rental returns for the same Perth property?

The comparison is genuinely difficult because most simple analyses compare gross short-stay revenue to gross long-term rent, which is not a like-for-like comparison. Short-stay carries higher operating costs (cleaning coordination, higher insurance, higher utilities, platform fees, dynamic pricing tools). Long-term rental carries different costs (managing agent fees, vacancy allowance, tenant-caused repairs).

This guide walks through a proper net-to-net comparison methodology, works through a specific Perth example, and explains where short-stay meaningfully wins, where it wins marginally, and where long-term rental is the better choice.

Any credible comparison compares net operating income on both sides, using the same time period (annual) and the same property.

Long-term rental net income calculation

Long-term rental net operating income = gross annual rent MINUS:

• Property management fee (typically 7.7 to 8.8 percent including GST for Perth)
• Letting/leasing fee (typically 2 weeks rent, amortised)
• Vacancy allowance (typically 2 to 4 weeks per year in current Perth market)
• Repairs and maintenance (typical range 1 to 2 percent of property value annually)
• Insurance (standard landlord policy)
• Council rates, water rates, strata levies (property costs, not letting-model costs)

For a Perth 3-bedroom property renting at $720 per week (2026 median):

• Gross annual rent: $720 × 52 weeks = $37,440
• Less property management (8%): $2,995
• Less vacancy allowance (3 weeks): $2,160
• Less repairs and maintenance ($400/month typical): $4,800
• Less insurance ($1,200/year typical): $1,200
• Net operating income: approximately $26,285

Short-stay net income calculation

Short-stay net operating income = gross annual booking revenue MINUS:

• Platform fees (Airbnb host service fee typically 3 percent; Booking.com and Stayz higher)
• Management fee (Artelier 20 percent of gross booking revenue)
• Cleaning cost differential (guest-paid cleaning fee typically covers direct cost; some overhead remains)
• Higher utilities (guest usage exceeds long-term tenant usage, typical premium $1,500 to $3,000/year)
• Higher insurance (short-stay-appropriate policy typical premium $800 to $2,000/year above standard landlord)
• Higher wear-and-tear allowance (typical range 2 to 3 percent of property value)
• Consumables and amenities (guest-facing supplies, typical $50 to $100/month)
• Council rates, water rates, strata levies (property costs, unchanged)

For the same Perth 3-bedroom property under short-stay, using indicative Perth suburb performance (~$60,000 gross annual booking revenue for a well-run property in a Tier 2 suburb):

• Gross booking revenue: $60,000
• Less Airbnb service fee (3%): $1,800
• Less Artelier management fee (20%): $12,000
• Less utilities differential ($2,000): $2,000
• Less insurance differential ($1,200): $1,200
• Less wear-and-tear allowance ($2,500): $2,500
• Less consumables ($900): $900
• Net operating income: approximately $39,600

The net-to-net comparison

For this specific example:

• Long-term rental net: $26,285
• Short-stay net: $39,600
• Short-stay premium over LTR: $13,315, or approximately 51 percent

This is the range we typically see in real Perth comparisons for well-run short-stay properties: 20 to 50 percent higher net income vs long-term rental for the same property. The premium is larger in Tier 1 coastal suburbs (Cottesloe, Scarborough) and smaller in Tier 3 established residential suburbs (Nedlands, Floreat).

The above calculation assumes a well-run short-stay property. Short-stay is meaningfully more sensitive to operational quality than long-term rental. Long-term rental at 80 percent of professional standard still delivers 90 percent of the achievable rent. Short-stay at 80 percent of professional standard often delivers 55 to 65 percent of the achievable revenue.

Three sensitivities matter most:

Occupancy

The example above assumes a Perth-typical 65 percent occupancy for a well-run property. Occupancy is the single largest lever on short-stay revenue.

Sensitivity for the same property:

Below 45 percent occupancy, most Perth short-stay properties underperform their long-term rental equivalent. This is why properly-run short-stay matters: an average-run property at 55 percent occupancy still beats LTR, but not by much.

Property presentation and photography

A property presented and photographed at professional short-stay standard typically commands 20 to 40 percent higher average daily rate than an equivalent property with amateur photography. The photography investment (typically $600 to $1,000 for a professional short-stay shoot) pays back in the first month for most properties.

Pricing calibration

Static pricing (a fixed nightly rate) typically leaves 10 to 20 percent of annualised revenue on the table for Perth properties. Dynamic pricing calibrated to the property’s specific suburb, seasonal patterns and event calendar recaptures this revenue. Dynamic pricing tooling (PriceLabs, Beyond Pricing, or equivalent) is standard in well-run short-stay operations.

Short-stay is not universally the better choice. Long-term rental is the right operating model for some Perth properties:

When the property location doesn’t support short-stay demand. Some Perth suburbs (particularly outer residential suburbs without leisure, business, event or medical demand drivers) generate insufficient short-stay bookings to make the model viable.

When the owner values operational simplicity absolutely. Long-term rental is a lower-touch model. If the owner cannot or will not engage with monthly reporting, occasional decisions on repairs or performance conversations, long-term letting is genuinely simpler.

When council or strata restrictions block viable short-stay operation. Council development approval is required in Perth metro for properties operating more than 90 unhosted nights per year. Some strata schemes prohibit short-stay entirely. If the property cannot lawfully operate at the volume needed to make short-stay work, long-term letting is the only viable option.

When the property is highly personalised to the owner’s taste and cannot be styled for a broader guest market. Short-stay properties earn a premium when they present at a broadly appealing standard. Highly personalised properties can be styled to work, but if the owner isn’t willing to make presentation changes, long-term letting is a better fit.

Four additional considerations that don’t appear in the simple net calculation but affect the real return:

Owner flexibility

Short-stay properties can be blocked for owner personal use at any time. Long-term rentals cannot. If the owner values the ability to use the property occasionally (family visits, staycations, sale campaign preparation), short-stay has a genuine advantage that dollar figures don’t capture.

Property maintenance and condition

Short-stay properties are cleaned professionally between every guest and inspected against a standardised checklist. Long-term rentals are inspected quarterly at best. Well-run short-stay properties are almost always in better condition than long-term rental equivalents at any given point, which affects property value at sale.

Tax treatment

Both models generate rental income deductible on the same basis. Short-stay allows some additional deductions (consumables, guest-facing supplies, higher utility apportionment) but also generates income across more brackets. Consult a tax adviser for property-specific analysis.

Sale flexibility

Short-stay operators can pause a listing for a sale campaign and resume if the property doesn’t sell, without dealing with a tenant lease. Long-term rentals require lease-end management or vacant-possession negotiation with an existing tenant. For owners considering sale in the medium term, short-stay preserves more optionality.

For any Perth property, a genuine comparison requires actual numbers, not just the indicative ranges in this article. Every property’s specific location, presentation, and market dynamics change the comparison.

Artelier’s free 48-hour property projection provides this specific analysis: a written projection of what your Perth property would earn under short-stay operation, based on suburb-specific data, comparable listings and current market performance. Where relevant, we also provide a like-for-like comparison against your existing or projected long-term rental income.

Book a free 48-hour property projection to see the numbers for your property.

For a broader view of Perth suburb short-stay demand across all major markets, see our Perth Suburb Short-Stay Demand Guide. For a full analysis of the operational fundamentals of running short-stay in Perth, download our Perth Landlord Report.

If you’re already considering handing your property to a manager, our short-stay property management service covers Full Management and Co-Host engagement options.

For most Perth properties in Tier 1 (coastal), Tier 2 (CBD and city fringe), and stronger Tier 3 (character-inner) suburbs, well-run short-stay generates 20 to 50 percent higher net operating income than long-term rental. The premium requires professional operation: dynamic pricing, professional photography, active guest screening, and disciplined cleaning coordination. Owners without the appetite or capacity to run to that standard, and unwilling to engage a manager who runs to that standard, will find long-term rental delivers more consistent returns with less operational load.

For owners with the right property, in the right suburb, willing to operate at professional short-stay standard (or engage a manager who will), the net income premium is real and material. For owners in the wrong suburb, unwilling to invest in presentation, or unable to manage council and strata restrictions, long-term rental is the better choice.

Brenton Whykes is the founder of Artelier Residence, a Perth-based short-stay property management operation. Twenty years in leadership and management across government, defence, mining and real estate. Twenty years investing in property across multiple Australian states.

Article sources: AirDNA Perth Market Report 2026, AirROI Perth STR Market Report 2026, Airbtics Perth Airbnb Revenue Data 2026, REIWA Perth Rental Market Data 2026. Data cited is publicly available at time of publication. Individual property performance varies materially with location, presentation, pricing calibration and management execution.

This article contains general information only and does not constitute financial, tax or property investment advice. Perth landlords considering short-stay vs long-term rental operation should confirm property-specific projections and tax implications with appropriate professional advisers.

© 2026 Artelier Residence. Content may be quoted with attribution and link back to source.