The Booming Short-Term Rental Market in New Zealand: Why Landlords Should Make the Switch

Imagine turning your investment property into a flexible income stream that earns more than a long-term lease and attracts consistent bookings all year. Thousands of Kiwi landlords are already doing this by tapping into the growing Airbnb market and adopting short-term rental strategies.

Whether you own a city apartment in Auckland or a holiday home in Queenstown, the short-term rental market in New Zealand is offering more opportunities than ever before. With tourism rebounding, domestic travel strong, and guests seeking comfort and local flair, now is the time to take a closer look at short-term property management.

Real Success: From Long-Term Lease to Short-Term Profit

Emma and Jason owned a three-bedroom home in Rotorua. They had rented it out long-term for years, earning around $520 per week. But they were frustrated with tenants not maintaining the place and long gaps between lease renewals.

They reached out to Aotearoa Escapes for help transitioning into the short-term rental space. We handled everything, from staging and photography to listing on Airbnb and Bookabach. Within four weeks, the property was live and receiving bookings. In their first two months, they brought in over $6,800, far surpassing their old returns. Plus, they now had access to the home whenever they needed.

You can learn more about how we support landlords on our services page.

Why Short-Term Rentals Are Outperforming Long-Term Leases in NZ Rental Market

Short-term rentals aren’t just trendy, they’re profitable, flexible, and backed by data. Here’s why more New Zealand landlords are making the switch:

1. Higher Revenue Potential

According to AirDNA, Airbnb listings in Auckland average over NZD $200 per night. In Queenstown, that figure jumps to over NZD $280. During peak seasons, occupancy can exceed 80 percent, which means monthly income can far surpass what a long-term lease provides.

2. Dynamic Pricing Advantage

Unlike long-term leases with fixed rent, short-term rentals can adjust nightly rates in real-time based on local events, school holidays, and seasonal demand. This flexibility means more earning potential throughout the year.

3. More Control Over Your Property

Want to reserve your home for family over the holidays? No problem. Need time for renovations? Simply block the calendar. Short-term letting gives you total control over availability.

4. Better Maintenance and Care

Your property is cleaned professionally between every guest stay. Issues are spotted early and fixed fast, helping to preserve the condition of your home long term.

5. Tax Deductions

Landlords can often claim deductions on expenses like cleaning, management fees, insurance, and more. It’s worth speaking to an accountant to understand the full tax benefits of a short-term rental model.

We break down more cost details on our pricing page.

FAQ: Can I Short-Term Rent My Property Part-Time?

Q: I still use my property for holidays or weekends. Can I rent it out short-term, the rest of the time?
A: Yes, absolutely. One of the biggest advantages of short-term rentals is flexibility. You can block off dates on your calendar when you plan to use the property, and open it up for bookings when it’s vacant. Many of our clients only rent out their homes during peak seasons or while they’re away. It’s a great way to earn passive income without giving up personal use of your space.
If you have more questions about how it works, check out our FAQ page for helpful answers.

Ask Yourself This

Would you feel confident managing bookings, coordinating cleaners, and responding to guest queries while keeping your calendar optimised and your property spotless?

If not, you’re not alone. Most landlords find the daily demands overwhelming. That’s why short-term property management with a local expert can make all the difference.

Visit our about page to learn more about who we are and why we’re trusted by property owners across the country.

Conclusion: The Smart Move for Kiwi Landlords

The short-term rental market in New Zealand is growing fast. With high occupancy rates, strong nightly returns, and growing domestic and international demand, it’s one of the most lucrative options for landlords in 2025.

By working with an experienced short-term property management company, you can enjoy the benefits of this booming market without the stress of doing it all yourself.

If you’re considering a switch or just want to understand your options, reach out for a free consult. We’re here to help you make the most of your investment property.

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