The Rise of the Airbnb Market: Why Landlords Are Turning to Short-Term Rentals

Imagine owning a property that pays for itself, earns more than a long-term lease, and stays spotless without you lifting a finger. That’s exactly what thousands of landlords across New Zealand are doing by tapping into the growing Airbnb market and adopting short-term rental strategies.

As Airbnb and other platforms reshape the way people travel, the rise of the short-term rental market is creating new opportunities for property owners. If you’re still relying on fixed leases and traditional tenancies, it might be time to rethink your approach. The numbers speak for themselves.

A Real Story from Auckland: One Property’s Short-Term Turnaround

Take Sarah and James, for example. They owned a two-bedroom apartment in central Auckland that had been sitting vacant after a long-term tenant moved out. Unsure about the next step, they reached out to us at Aotearoa Escapes for guidance.

Instead of rushing into another lease, we helped them set up the apartment as a short-term rental. Within the first 90 days, they earned over $13,000. Bookings poured in from tourists, business travelers, and even Kiwi families attending events in the city. The best part? Sarah and James didn’t lift a finger. We handled the bookings, cleaning, guest communication, and compliance. Now, their apartment generates consistent income year-round.

The Data Doesn’t Lie: Why the Airbnb Market Is Booming

Short-term rentals are no longer a side hustle. They’re a serious income strategy. According to Statista, the global vacation rental market was valued at $87 billion in 2022 and is forecast to reach $113 billion by 2027. That’s a growth rate of over 5 percent per year.

Even here in New Zealand, the impact is clear. Auckland accounted for more than one-third of the country’s total guest nights in 2023, according to Stats NZ. Events like the ASB Classic, major concerts, and seasonal festivals continue to drive demand throughout the year.

Travelers are increasingly looking for local, comfortable, and cost-effective options. Airbnb stays of 28 days or more made up over 20 percent of bookings globally in 2022, showing that the rise of remote work has created a new wave of medium-term renters as well.

5 Reasons Landlords Are Embracing Short-Term Property Management

If you’re a landlord considering your next move, here’s why more property owners are choosing short-term property management over traditional renting:

1. Higher Income Potential

Short-term rentals can earn 2 to 3 times more than long-term leases. For example, a home renting long-term for $650 per week could bring in $1,800 or more per week as a well-managed Airbnb, depending on occupancy and season.

2. Flexibility and Control

You decide when the property is available. Want to block out a week for your own holiday or repairs? No problem. You’re not locked into a fixed tenancy.

3. Better Property Condition

Frequent cleaning and regular inspections keep your home in top shape. Unlike long-term rentals where damage might go unnoticed, issues are caught early and handled fast.

4. Optimized for Profit

With the help of dynamic pricing tools and local market expertise, short-term rentals are adjusted in real time to match demand. This helps maximize your returns.

5. Tax Deductions

Many operational costs such as cleaning, maintenance, utilities, and management fees are deductible expenses that can help reduce your tax liability.

Is Short-Term Rental Right for You?

Let’s pause for a moment.

Would you feel confident managing guest check-ins, coordinating cleaners, answering late-night messages, and navigating Auckland Council regulations all on your own?

If the answer is no, that’s okay. Most landlords feel the same. That’s why many choose to partner with a professional property management company.

At Aotearoa Escapes, we offer hands-free short-term property management that takes care of every detail. You get all the benefits of short-term income without the stress.

FAQ: Do I Need Consent to List My Property on Airbnb?

Q: Do I need special consent or permission to run a short-term rental in Auckland?
A: It depends. In some residential zones, if you’re renting out a property for more than 180 nights a year or if it’s not your primary residence, you may need resource consent from Auckland Council.
We cover the basics on our FAQ page, but we’re also happy to chat with you one-on-one to help you understand what applies to your property.

Where Are the Best Places in New Zealand for Short-Term Rentals?

Some areas consistently attract more bookings due to location, accessibility, and the type of traveller they appeal to. If you own property in one of these regions, you could be tapping into strong, year-round demand:

• Queenstown & Arrowtown – A tourism magnet all year round, perfect for adventure-seekers, skiers, and luxury travellers
• Auckland CBD & Suburbs – Business travellers, international visitors, and Kiwi families all love the convenience of central Auckland
• Taupō & Rotorua – Lakeside relaxation, geothermal wonders, and family-friendly attractions keep bookings steady
• Mount Maunganui & Tauranga – Beach holidays, surf culture, and a growing events calendar make this region a summer favourite
• Nelson & Abel Tasman – Art, wine, and outdoor lovers are drawn to this sunny region, especially during peak travel seasons
• Wellington – The capital city is home to festivals, government travel, and a strong domestic market
• Christchurch & Canterbury – Ideal for tourists, business trips, and alpine adventures
• Dunedin – University calendar and growing tourism trends make this city a year-round option

See how we work with property owners across these regions and more on our locations page.

Your Airbnb Business, Made Simple

Short-term rental success comes down to preparation and ongoing care. Here’s what we offer at Aotearoa Escapes to make the process seamless:

• Property setup and staging
• Professional photography and listing creation
• Dynamic pricing and calendar optimisation
• Guest communication and review management
• Full cleaning, laundry, and maintenance coordination
• Council compliance and regulation monitoring

You can find more details on our pricing page or explore our complete services offering.

We also recommend browsing our blog for tips, case studies, and guidance for landlords ready to explore the short-term market.

Final Thought: The Time Is Now

The Airbnb market is not slowing down. The combination of changing travel habits, new technologies, and ongoing demand makes short-term rentals one of the most profitable strategies for property owners in 2025.

Whether you own a bach, an apartment, or a family home, turning your property into a short-term rental could unlock a new stream of income and more control over your asset.

If you’re ready to explore what this could look like for you, contact us today or book a free consult with the friendly team at Aotearoa Escapes.

You can also learn more about our team and how we’ve helped property owners like you grow stress-free income from day one.

Lets Talk

Have a property you’re unsure what to do with? Or maybe you’re already on Airbnb but not getting the results you expected?

We’d love to help. Get in touch and let’s make your property work harder for you.