Host your home on AirBnB while you're on holiday?
Consider income and time when considering hosting your home on AirBnB
I was interested in making some money while we were away on holiday by letting out our house on AirBnB.
At first this seemed like a good idea, get paid while we are on holiday using an asset that is otherwise dormant.
However after running the numbers, things did not look quite so rosy. After all costs are taken into account well over half of the rental income would be consumed , and then taking tax into account we would be left with a profit of about 30% of the gross rental income.
Was it still worth it? Taking into account the effort involed in preparing our house, No.
Here's a rough breakdown of the figures:
Estimated Profit & Loss for 5-Week NSW Airbnb Rental (Christmas 2025/2026)
| Category | Description | Calculation / Fee Structure | Amount (AUD) | Classification |
| A. GROSS RENTAL INCOME | Total Expected Revenue | 5 weeks $2,400/week 80% occupancy | 9,600.00 | Income |
| B. TOTAL EXPENSES | (Sum of all costs) | 5,223.00 | ||
| 1. PLATFORM & CO-HOST FEES (Variable) | ||||
| Airbnb Host Service Fee | 15.5% of Gross Income ($9,600 0.155) | 1,488.00 | Platform Cost | |
| Co-Host Commission | 20% of Gross Income ($9,600 0.20) | 1,920.00 | Host Cost | |
| Deep Cleaning Fees (x2) | 2 cleans $400/clean (Estimate for deep clean) | 800.00 | Operational Cost | |
| 2. NSW GOVERNMENT & COMPLIANCE FEES (Fixed/Annual) | ||||
| NSW STRA Registration Fee | Initial fee to register property on NSW Planning Portal | 65.00 | Compliance Cost | |
| 3. OPERATIONAL & INSURANCE COSTS (Apportioned) | ||||
| Consumables & Amenities | Estimate for 5 weeks (toiletries, coffee, cleaning products, etc.) | 400.00 | Operational Cost | |
| Short-Term Rental Insurance | Apportioned annual cost for 5 weeks | 150.00 | Operational Cost | |
| Utilities (Water, Gas, Electricity, Internet) | Apportioned 5-week utility costs for a vacant house | 400.00 | Operational Cost | |
| C. ESTIMATED NET PROFIT | A - B ($9,600.00 - $5,223.00) | 4,377.00 | Final Cash Profit |
The frictional costs involved are incredibly high when compared to an asset like equities. Not to mention the actual physical work and time involved (unpaid) on my part to transition the house to be suitable for short term tennants.
In short, the lesson I learned is to first list out all the costs and expenses (money and time) before jumping in.
