Survey reveals most landlords favour stable, long‑term tenants
More than nine in 10 property investors in Australia have no exposure to short‑term rental accommodation, according to new research from the Property Investment Professionals of Australia (PIPA).
The 2025 PIPA Annual Investor Sentiment Survey, which canvassed more than 850 investors nationwide, found that 92.1% of respondents do not rent any of their properties as short‑term rental accommodation (STRA). Only 1.7% of those who bought in the past 12 months said their most recent purchase was intended for STRA use.
Investors also expressed uncertainty about the financial upside of STRA. Just 22.1% of respondents believed short‑term rentals produce stronger returns than conventional long‑term tenancies, while 48.3% said they were unsure.
Risk and workload concerns featured prominently.
More than 60% of investors said STRA carries a greater risk of property damage than long‑term rentals and involves more day‑to‑day management. Over the past five years, 87% of respondents reported they had never used STRA for any of their properties, suggesting that holiday lets remain a marginal strategy among more established investors.
PIPA chair Cate Bakos (pictured right) said the findings underlined a pragmatic approach among investors focused on stability and long‑term asset performance.
“The survey makes it abundantly clear that STRA properties are not on the radar of many investors,” she said. “More than nine in 10 respondents have no STRA exposure, and the overwhelming majority see them as higher risk and more work.”
Bakos said existing pressures on landlords were already material, citing compliance obligations, tenancy reforms and higher land tax bills.
“Adding the unpredictability of STRA properties into the mix simply doesn’t stack up for those who are serious about building wealth through property with holiday home locations generally considered speculative rather than strategic by property investment professionals,” she added.
Bakos also noted that most respondents viewed themselves as long‑term housing providers rather than short‑term operators.
“Investors are telling us loud and clear that they want to contribute to the long-term rental pool, not chase short-term gains,” she shared. “STRA properties may look attractive because of their high nightly rental rates, but they generally don’t align with the fundamentals that underpin successful property investment.”
The survey also asked investors to nominate the locations they see as most attractive in the year ahead.
Melbourne led with 40.7% of responses, followed by Brisbane on 16.5% and Perth on 9.2%. Participants cited expectations of long‑term capital growth (70.3%), low vacancy rates (41.5%) and major infrastructure projects (37.1%) as their main reasons for targeting particular markets.
Despite cost pressures and regulatory change, 59.3% of investors said they consider the next 12 months to be a good time to buy.
For Bakos, the data indicates that many landlords plan to remain active in the long‑term rental sector, provided policy settings remain supportive. “This year’s survey shows that most investors are committed to providing stable, long-term housing,” she said. “With the right government support, they can continue to play a vital role in easing rental pressures.
“However, if governments want to encourage more rental supply, they need to support investors in the long-term residential sector rather than burden them with additional costs and restrictions.”
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