Why a Buyer’s Agent Is Your Secret Weapon for Buying a Short-Term Rental

Thinking about diving into the short-term rental game? Buying the right property can set you up for excellent cash flow—but getting it wrong can leave you bleeding money and pulling your hair out.

That’s where a buyer’s agent comes in.

A good buyer’s agent can help you sidestep costly mistakes, find properties with strong returns, and negotiate deals that put you ahead of the pack.

In other words, they’re not just a “nice to have”—they can be your secret weapon.

Let me explain why, and share some insights I’ve picked up along the way.

A Quick Note About Me

Hi! I’m the founder of Wise Real Estate Advice, a property buyers agency, and Property Managers Melb, a property management company. I’ve spent the last decade helping clients buy and manage short-term rental properties, especially those aimed at delivering higher-than-average returns.

Over the years, I’ve helped clients buy dozens of high-yielding properties for short-term rentals—homes that often double or even triple what you’d expect from the traditional long-term rental market.

In this article, I’ll break down what I’ve learned—and what you need to know—before buying a short-term rental.

Location, Location, Cash Flow

The first (and possibly most important) factor? Location.

You’re not just competing with hotels and other Airbnb listings. You’re also up against the traditional long-term rental market. So, for a short-term rental to make financial sense, the property must outperform what you’d earn from a regular lease.

That means buying in the right pocket of the right suburb.

Take Melbourne, for example. It’s a mixed bag. There are pockets with strong demand and others with high vacancy rates. Whether you’re buying an apartment or a house, the where is just as important as the what.

Buying in a desirable location will:

• Attract consistent bookings
• Minimise vacancy periods
• Allow for higher nightly rates
• Increase your flexibility if you ever switch back to long-term rental

Know Your Target Guests

Many first-time investors assume Airbnb is just for tourists. In reality, the majority of short-term guests are not on holiday.

In fact, over 70% of the properties I’ve helped clients purchase end up hosting:

• Families renovating their primary residence
• Professionals on short-term work contracts
• Migrants new to Australia setting up a base
• Property buyers who need a temporary home between selling and purchasing

These guests are often longer-term renters—staying for a month or more—and they’re often more stable and respectful of your property.

So when buying a short-term rental, look for homes that appeal to a broad range of people. That means good access to schools, public transport, hospitals, and shopping precincts—not just tourist attractions.

Buy Low Maintenance, Not High Drama

One of the biggest traps I see investors fall into? Buying a beautiful property that’s a maintenance nightmare.

Here’s a real-world example:
A leaky roof might cost $200 to patch—or $25,000 to replace. And that kind of unexpected hit can quickly wipe out your cash flow.

My advice? Buy properties that are:

• Structurally sound
• Easy to maintain
• Built with durable finishes

Skip the high-end fixtures and fittings. You don’t need imported marble benchtops when a good-quality Caesarstone will look just as nice and survive a wine spill.

Trust me, things will get broken. Guests will scratch surfaces, stain couches, and use appliances a little rougher than your average tenant. Choose finishes that are:

• Durable
• Easy to clean
• Inexpensive to replace

Low maintenance equals low stress—and lower running costs.

Don’t Forget Plan B

Short-term rentals are booming now, but the market is always changing. A good investor plans for the what-ifs.

Let’s take a quick trip down memory lane:

• COVID lockdowns suddenly killed travel demand overnight
• New taxes on short-term rentals were introduced
• Compliance regulations like annual smoke alarm, gas, and electrical checks became stricter
• The cost of living crisis affected travel budgets and demand

The takeaway? Your short-term rental should also be a solid option for long-term tenants, just in case you need to switch strategies. If your property wouldn’t perform well in the regular rental market, it might not be the right purchase.

Why Use a Buyer’s Agent?

Here’s where a buyer’s agent can truly make the difference:

1. They Know the Local Market Inside Out

An experienced buyer’s agent knows which suburbs are thriving and which are struggling. They understand local council rules, upcoming infrastructure plans, and zoning restrictions.

2. They Spot Issues You Might Miss

From potential water damage to sneaky body corporate rules, a buyer’s agent will help you avoid properties that look great on the surface but have costly problems underneath.

3. They Know What Guests Want

A buyer’s agent familiar with short-term rentals knows what guests are looking for—from layouts to location—and will guide you toward properties that tick the right boxes.

4. They Can Negotiate Better Deals

Buying off-market, dealing with stubborn sellers, or securing discounts post-building inspection—these are all part of the job. An experienced agent will help you save money (and headaches).

Wrapping It All Up

Buying a short-term rental is a great way to supercharge your returns—but only if you buy smart.

You need the right location, the right type of property, and a clear understanding of your potential guests. You also need to protect yourself with a backup plan in case the market shifts.

That’s why a buyer’s agent—especially one experienced in short-term rentals—is your not-so-secret weapon.

If you’re ready to take the leap or just want to chat about what’s possible, feel free to reach out. At Wise Real Estate Advice and Property Managers Melb, we’ve got the experience to guide you toward a profitable and stress-free short-term rental investment.