Coogee Airbnb turns vacant rental into income, investor says it outperformed long-term lease

A Sydney property investor has doubled the income from a rental by converting it into a short-term listing on Airbnb, a move that began as a response to a vacancy and grew into a case study for clients. Jack Henderson started the experiment in July after his one-bedroom unit in Coogee, in Sydney’s eastern suburbs, sat vacant for more than a month, a period he described as unproductive for an asset he intended to monetize.

The renovated space sits in The Belvedere, a prominent Art Deco building on the Coogee shoreline, and is just about 200 meters from the beach. To convert the unit into a more appealing short-term stay, Henderson invested roughly $20,000 in furnishings, including a bed, kitchenware, and a fold-out futon to seat additional guests. He listed the apartment on both Airbnb and Booking.com, though the majority of bookings came through Booking.com.

Over roughly three months, Henderson reported 15 bookings for the property, resulting in a net revenue, after platform fees, of $19,578. He noted an average of about $6,526 in bookings per month and said September, while not yet complete at the time of reporting, was expected to bring additional bookings. By comparison, he said the short-term arrangement had already outperformed what the unit would have yielded as a traditional full-time rental.

The non-traditional arrangement also allows Henderson to retain personal access to the property when needed, such as for staff or personal stays, adding a practical benefit beyond the financial upside. He cautioned that the strategy is not universally applicable and highlighted the importance of location. In his assessment, properties near beaches and destination areas—like Coogee, a short distance from Bondi—tend to fare better in the short-term rental market, while other properties may not achieve the same results.

Henderson also acknowledged some downsides, noting that difficult guests and unexpected issues can occur in short-term leasing. He added that higher nightly rates can correspond with fewer problems because higher-paying guests tend to be more mindful of house rules. Nevertheless, he warned potential adopters to compare net numbers rather than gross figures, as short-term leases involve more costs such as cleaning, management, and platform fees.

The broader policy context in New South Wales adds another layer to the decision for property owners. NSW introduced rules in 2021 to address rising rents and a shortage of properties, allowing non-hosted properties—those without a live-in owner—to be rented for up to 180 days per year in Greater Sydney. Hosted properties, where the owner resides on-site, can operate year-round. The rules are currently under review as the NSW Government seeks to balance the benefits of short-term rentals with the need to encourage more long-term rentals. Supporters of the model argue that well-located, properly managed short-term rentals can boost local economies and help asset owners cover mortgage costs, while critics warn of reduced housing supply for long-term renters.

For Henderson, the financial dynamics appear favorable thus far, particularly given the property’s proximity to the beach and its appeal as a destination stay. He emphasized that the approach may work best for properties with immediate appeal to short-term travelers, where the balance of occupancy and nightly rate can cover carrying costs and governance requirements. He added that owners should run the numbers carefully, considering all operating costs and taxes, before moving from traditional leasing to short-term arrangements.

Ultimately, Henderson framed the experiment as a practical illustration rather than a universal blueprint. If the numbers add up—covering expenses and generating meaningful net revenue—he suggested more landlords might consider short-term leasing as a strategic option, especially for high-demand locales. While the strategy hinges on location and market conditions, his experience in Coogee offers a data point in the broader debate over how best to balance property supply, rental affordability, and investor returns in New South Wales.