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Airbnb Rules in Melbourne

Last updated on June 22nd, 2023

Before you start to invest in a property in Australia, particularly in Melbourne, the primary key metrics that all investors need to know should be considered for a successful investment! In this article, we will feature some of the essential Airbnb metrics such as average daily rates, monthly revenue, and occupancy rates in Australia.

Continue reading to learn more about Airbnb rules in Melbourne and learn more about profitability in this city!

Is Airbnb legal in Melbourne? 

Let’s cut the story short: Yes, Airbnb is certainly legal in Melbourne! With a shocking number of 36.5 million visitors annually, Melbourne is truly a profitable city to do Airbnb. This city constantly attracts more tourists to book accommodations to visit The National Gallery of Victoria, Royal Botanic Gardens, Federation Square, and see other tourist attractions. 

Here is a little proof! As of July 2022, there are 124,150 nights available in Melbourne  from Airbnb alone. Valeria manages 144 listings, while MadeComfy and Dave operate 115 and 78 respectively.

How much can I make by running an Airbnb in Melbourne?

Currently, there are 7,931 Airbnb listings in Melbourne, with 58% of entire houses earning up to A$3,459 a month. The Average Occupancy Rate in Melbourne is 51% and the average daily rate is A$141. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Melbourne can make up to A$49,651 each year. Check out our Airbnb Profit Calculator!

Melbourne airbnb rules
What Are The Short-term Rental Accommodation Policies in Melbourne?
  • Short-term rentals and short stays are considered as accommodation and residential buildings by the Victoria Planning Provisions. This means that a planning permit is NOT required to operate a short-term rental.
  • The city of Melbourne does not impose any night limits or other restrictions on short-term rentals.
  • If an apartment is issued with three breach notices in a 24-month period, Victorian Civil and Administrative Tribunal (VCAT) will be able to make orders restricting that apartment from being let for short-stay purposes for a period of time. The breach notices must be issued for separate events (rather than a single event which attracts multiple complaints).
  • According to the City of Melbourne and Consumer Affairs Victoria, there are no current zoning restrictions for short-term rentals or short stays in Melbourne.
how much can you make on airbnb

Is Melbourne A Profitable Area to Invest In?

If you’re worried about spending thousands of bucks to purchase a property, the good news is you don’t need to! 

Property investors and hosts prefer to do rental arbitrage in Australia since this does not require owning a property. Based on statistical data for Melbourne, the rental population in this area is 48.65% with a steady rental yield of 3%.

By using an accurate short-term rental calculator, you’ll be able to confirm if Melbourne is a good place for investment! It’s important to know your estimated annual revenue and high-return investment opportunities in Melbourne – and with Airbtics, it shouldn’t be a difficult task at all!

Melbourne airbnb rules

Source:  Property Investment in Melbourne

Melbourne’s Property Market 2022

According to Melbourne’s housing market update, the rental market in Melbourne has low supply levels which reflects the increase in rental prices. In addition to this, there is a rising demand from international students and returning workers across central business districts.

Melbourne airbnb rules

Source: Housing Market in Melbourne

Here are some of the most recommended neighborhoods in Melbourne that you can look into & consider purchasing based on Airbtics estimator:

Suburbs Price of 2bd Apartments Average Rent Price Average Airbnb Revenue
South Yarra A$550,000 (715.35 sq.m. apartment) A$2,564 A$4,973
Mornington A$690,000 (266 sq.m. apartment) A$2,173 A$5,444
Southbank A$650,000 (190 sq.m. apartment) A$2,650 A$4,721

Source for Property Price: Properties in Melbourne


In general, considering the Airbnb rules & regulations in Melbourne will help your Airbnb business to run smoothly! Aside from the fact that this is a passive income for various hosts, starting an Airbnb business is also a way to enjoy life and connect with new people from all over the world. Try Airbtics now and make the wisest investment decisions!



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