Investors Prefer Permanent Tenants

Many Councils are trying to boost the availability of rental properties by restricting short-term letting, but a new survey shows only about 10% of investors offer their properties for the holiday market.

According to the Property Investment Professionals of Australia (PIPA), 92.1% of investors have no exposure to the short‑term rental market.

And it says only 1.7% of those who bought in the past 12 months intend to use the property for short-term letting.

PIPA’s survey shows the majority of investors don’t believe short-term letting provides stronger returns and more than 60% are concerned about greater risks of property damage and more day‑to‑day management required for holiday letting.

PIPA chair Cate Bakos says most investors focus on stability and long‑term asset performance.

“Adding the unpredictability of STRA properties into the mix simply doesn’t stack up for those who are serious about building wealth through property, with holiday home locations generally considered speculative rather than strategic by property investment professionals,” she says.

Brisbane City Council is the latest to crack down on short-term letting, announcing this week that permits will be required from July next year for those who want to continue operating.