Thinking of whether to invest in short-term vs long-term rentals in Bendigo? With rising rents and strong demand, it’s key to weigh flexibility, income, and management effort. This guide compares both options to help you choose the best strategy for your goals in Bendigo’s growing regional property market.

Short-term vs. long-term rentals: key differences

Before deciding whether to invest in short-term or long-term rentals in Bendigo, VIC, it’s important to understand how they differ:

● Rental duration: STR bookings are nightly or weekly, ideal for travellers; long-term rentals are leased monthly or yearly.

● Income & flexibility: STRs can earn higher nightly rates and seasonal income, but fluctuate with demand. Long-term rentals offer fixed monthly rent, so returns are steadier but usually lower. For example, as of December 2024, Bendigo STR hosts earned about $1,277/month.

● Management: STRs require regular guest turnover, cleaning, and guest communication, while long-term rentals need less day-to-day management.

Pros and cons of each strategy

The short-term rental profitability in Bendigo is slightly higher than in the neighbouring cities, thanks to tourism peaks and events. However, there are trade-offs to consider:

	Short-Term Rentals	Long-Term Rentals
Pros	Potentially higher returns, especially in peak seasons. Flexible nightly pricing and personal use between bookings. Lower vacancy risk during tourist season.	Steady monthly income; easier budgeting. Lower management intensity after move-in; tenants handle minor upkeep. Simpler financing and insurance (renting to a resident). Stable occupancy if the tenant is good.
Cons	Income is irregular and depends on bookings; off-season earnings can drop. High turnover: frequent cleaning, guest emails, and check-ins. Platform fees and possible local regulations (though Bendigo is lenient).	Generally lower yield per week; slower rent growth. Less flexibility to adjust rent or use the property. Risk of vacancy or bad tenant if not well-screened. Dependent on the tenant market conditions.

Factors to consider when choosing your rental strategy

When making an investment decision, the best choice depends on your goals and situation. Consider these key factors:

Location suitability

Short-term rental properties perform best near attractions or events. Bendigo's tourism is boosted by its historic CBD, art gallery, Golden Dragon Museum, and annual festivals. These bring visitors year-round, sustaining demand. According to recent Bendigo short-term market statistics, the greater Bendigo region had 531 short-term listings with a median occupancy of 64%. A typical Bendigo STR host earned about AU$ 47,000/year, benefiting from higher nightly rates ($203 median AUD) and seasonal surges.

High-traffic areas do boost bookings. In contrast, long-term rentals thrive in residential suburbs with stable neighbourhoods, schools, and commuting options. A quiet street in Kennington or Eaglehawk may yield dependable tenants, whereas a short-term stay in that area might not see much traffic.

Time commitment & management preferences

Managing a short-term rental in Bendigo is hands-on. As noted above, the median STR occupancy rate is decent, and hosts often turn guests over multiple times per month. This means scheduling cleanings, restocking supplies, and continuously responding to guest inquiries or issues. The payoff is higher potential cash flow, but the work is constant.

Long-term rentals, however, require much less day-to-day effort. Once a tenant signs a lease, your role is largely collecting rent and maintaining the property every few months. If you enjoy hospitality or have a property manager, STRs’ extra duties may be manageable.

Financial goals

Short-term rentals can spike your income in Bendigo, but earnings fluctuate. Long-term rentals trade that volatility for predictability. For investors prioritising consistent returns, long-term rental stability in Bendigo is a plus due to lower vacancy rates and year-round income. It is also wise to factor in expenses: STR guests cover utilities, internet, and wear-and-tear more, but you pay platform and cleaning fees. Long-term renters usually pay utilities, reducing investors' expenses.

Regulatory environment & tax considerations

Short-term and long-term rentals fall under different rules. In Bendigo, council policies on short-stay rentals are currently lenient, so few hosts face strict restrictions or licensing (you still need to verify the latest local rules). Changes could arise if the short-term rental supply grows. On the contrary, long-term rentals are governed by well-established tenancy laws, which give both landlords and tenants certain rights (e.g., eviction notice requirements, rent increase limits) that can protect your investment. Both are taxed as rental income, but STR earnings may require additional record-keeping for nightly rates and cleaning fees. You can claim deductions on both, though you should consult an accountant on specifics.

Regarding market trends, Bendigo's property sector is evolving. It is one of Australia's most affordable major regions. In 2024, the median house price was about $570,000 (over 30% cheaper than Melbourne), and it is growing. The city’s long-term rental vacancy rate is 1.7%, and the yields are solid—about 3.8% for houses and 5.9% for units, and rents tend to increase steadily (Bendigo rents rose as the population grew). This region also has nearly $889 million in new projects underway for 2025 (new lots, housing developments), reflecting strong investor confidence. These Bendigo property investment trends mean supply may soon rise, and local infrastructure will improve.

Considering which strategy is right for you? Get help with Bendigo Signature Accommodation

Both short and long-term renting have merits in Bendigo's current market. Your choice depends on location, lifestyle and financial aims. In many cases, hybrid strategies (e.g. 9-month lease then 3-month STR) work just fine in regional Victoria.

Regardless of the path, leveraging property management support in regional Victoria can ease the process. Professional managers, like Bendigo Signature Accommodation can handle marketing, bookings, or tenant placement and ensure compliance with local regulations. Explore our tailored offerings to suit your investment goals.

Invest in Short-Term vs. Long-Term Rentals in Bendigo: Which is More Profitable?