Investing in Melbourne Real Estate: A Guide to Airbnb Laws and Best Rentals



The Insider @ Houst
Last updated on
April 13, 2023

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Investing in Melbourne Real Estate: A Guide to Airbnb Laws and Best Rentals

I hope you enjoy reading this blog post.

If you want my team to just manage your Airbnb for you, click here.

Airbnb Management Services by Houst | Short-Term Rental Experts

About Houst

Houst is a leading property management company specialising in short-term and medium-term bookings in eight countries. With over 7 years of experience and managing over 300,000 bookings, we help homeowners make the most of their properties.

Learn More

When you begin investing in real estate in Australia, particularly in Melbourne, consider the fundamental important parameters that all investors must understand for a successful investment! In this post, we will look at some of the most important Airbnb stats in Australia, such as average daily rates, monthly income, and occupancy rates.

Continue reading to learn more about Airbnb laws in Melbourne and how to make money in this city!

Table of Contents

Is it legal to use Airbnb in Melbourne?

To make a long tale short, Airbnb is absolutely legal in Melbourne! Melbourne is an extremely profitable city for Airbnb, with 36.5 million tourists per year. This city is continually attracting more tourists who want to stay in order to explore The National Gallery of Victoria, Royal Botanic Gardens, Federation Square, and other tourist attractions.

Here's some evidence! As of July 2022, there are 124,150 nights available on Airbnb alone in Melbourne. Valeria is in charge of 144 listings, while MadeComfy and David are in charge of 115 and 78, respectively.

How much money can I make if I run an Airbnb in Melbourne?

In Melbourne, there are currently 7,931 Airbnb listings, with 58% of complete houses earning up to A$3,459 a month. In Melbourne, the average occupancy rate is 51%, and the average daily rent is A$141. A 2-bedroom flat in Melbourne may earn up to A$49,651 per year, according to holiday rental market data firm Airbtics. Visit our Airbnb Profit Calculator!

What Are Melbourne's Short-Term Rental Accommodation Policies?

The Victoria Planning Requirements classify short-term rentals and brief stays as lodging and residential buildings. This means that a short-term rental does not require a planning permission.

There are no night limits or other restrictions on short-term rentals in Melbourne.

If an apartment receives three violation notices in a 24-month period, the Victorian Civil and Administrative Tribunal (VCAT) can make orders prohibiting the property from being rented out for short-term reasons for a period of time. Separate breach notices must be made for each occasion (rather than a single event which attracts multiple complaints).

There are no existing zoning restrictions for short-term rentals or short stays in Melbourne, according to the City of Melbourne and Consumer Affairs Victoria.

Is Melbourne a Good Place to Invest?

If you're concerned about investing thousands of dollars to buy a home, the good news is that you don't have to!

Rental arbitrage is preferred by property investors and hosts in Australia because it does not necessitate the ownership of a property. According to Melbourne statistics data, the rental population in this area is 48.65%, with a consistent rental yield of 3%.

You'll be able to confirm if Melbourne is a good spot to invest by utilising an accurate short-term rental calculator! It is critical to understand your expected yearly revenue and high-return investment opportunities in Melbourne - and with Airbtics, this should be a simple chore!

The Top Airbnbs in Melbourne's North:

According to Melbourne's housing market update, the Melbourne rental market has low supply levels, which reflects the rise in rental costs. Also, there is an increase in demand from overseas students and returning workers in core business districts.

  1. The Palazzo Penthouse FITZROY

Fitzroy Penthouse Airbnb is not just one of the nicest Airbnbs Fitzroy has to offer, but also in Melbourne. The apartment has lengthy white-walled open rooms with an island kitchen, a breezy outside eating area with trees dangling above, and a design-book living room. The Penthouse Palazzo's minimalist-style fit-out includes a hanging fireplace, floating shelves loaded with books, and a range of modern-design furnishings, delivering a great blend of 2023 sensibilities and relaxing appeal.

A Fitzroy Airbnb, one of the best in Melbourne, with white walls and black furnishings. In the backdrop, you can see a minimalist bookshelf.

  1. Warehouse in the Jungle

You won't want to leave this bohemian hideaway, which has its own downstairs ping pong table and gorgeous brass hardware throughout. This one-of-a-kind retreat is set in the idyllic neighbourhood of Abbotsford, just a 15-minute walk from the gorgeous Yarra Trail. If you book the Jungle Warehouse for a weekend, go to the Abbotsford Convent for the weekly market, but honestly, there's plenty to do inside the house, with fairy lights illuminating an outdoor bath, a courtyard for dining, and an indoor projector for the ultimate movie-watching experience in one of Melbourne's best Airbnbs.

  1. A bright bedroom in one of Melbourne's greatest airbnbs.

If you're looking for some inner-north authenticity in 2023, this Gorgeous Designer Apartment in Collingwood is the place to be. This apartment, located two minutes from the ever-lively Smith Street, features the quintessential Melbourne experience right outside the building's front door. There's also a pub beneath the apartment, so you won't have to go far for a fantastic night out. There are also some amazing views from the balcony, which extend all the way to the Dandenong Mountains, so kick back and relax in style in one of Collingwood's greatest Airbnbs.

  1. Brunswick's Magnificent Converted Church

This restored three-story church in Brunswick is a true spectacle of a stay and without a doubt a front-runner for Melbourne's greatest Airbnb. The ancient brick front hides an ultra-chic interior, a fully transformed space with polished floorboards, exposed brick walls, and even the original cathedral ceilings and wooden beams, right in the heart of the northside core. The outside is old, but the interior has practically every creature comfort imaginable, from freestanding bathtubs to a large modern kitchen to a smart salon and library. If you're looking for a parking spot, this one is hard to beat.

Brick walls, warm-colored furnishings, and a glass table in one of Melbourne's greatest airbnbs.

  1. Traditional Victorian Cottage FITZROY

Nothing says "Melbourne" like an exposed brick wall in Fitzroy (so 2023), and that's exactly what you get with this Traditional Victorian Home. The house's centrepiece is a magnificent, light-filled living room with a wooden ceiling and stained glass windows, but its location is what makes this runner-up for one of the greatest Airbnbs in Melbourne. A detour away from Brunswick Street, which is known for its fantastic restaurants, bars, and shopping. Regardless of how busy Brunswick Street is, the cottage is far enough away from the action that you won't hear it, ensuring a restful night's sleep at one of Fitzroy's top Airbnbs.

A spacious, airy and cheerful lounge area in a renovated warehouse that is regarded as Melbourne's best airbnb.

  1. Lovely Light-Filled Residence BRUNSWICK

This welcome light-filled stay, located on the west side of the suburb, is one of the best Airbnbs Brunswick has to offer. The hustle and bustle of Sydney Road, as well as Melbourne Zoo, are only 15 minutes away from the city. Inside, natural timber furnishings provide a breezy laid-back vibe against the white-washed walls and architraves, and there's even a little rear porch for soaking up the sun on a warm Melbourne morning.

Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Melbourne team to uncover your property’s revenue potential.


In general, paying attention to the Airbnb laws and regulations in Melbourne will make your Airbnb business work more smoothly! Aside from being a source of passive income for many hosts, launching an Airbnb business is also a fun opportunity to meet new people from all over the world. Use Airbtics right away to make the best investment decisions!

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

I hope you enjoy reading this blog post!
If you want my team to just manage your Airbnb for you, just book a call.
Book a call
Click here to Get More Bookings!
See How Houst Can Elevate Your Airbnb’s Visibility
  • Listing Optimisation – Maximise your listing’s potential. Experience tangible growth.
  • Professional Photography – Captivating visuals that instantly attract guests.
  • Guest Screening – Ensuring only the best and safest guests for your property.

We hope you enjoy our blog!

If you would like to find out more about how our team can help you get the most of your Airbnb, just book a call with us.

Thank you for providing your contact information!
Oops! Something went wrong while submitting the form.