Estimated Size of Residential Rental Market in Canberra 

There are approximately 55,000 to 60,000 rental properties across Canberra, with the majority owned by private investors. 

This represents around one-third of all residential properties, making rental income a significant part of the Canberra property market. 

How Residential Rental Properties in Canberra Are Typically Rented 

The following outlines the most common ways Canberra property owners generate rental income from residential property: 

• Standard residential tenancy
• Short-term rental (Airbnb / Stayz) 
• Room-by-room rental 
• Foreign student rental 
• NDIS / supported accommodation rental 
• Vacant (available but not rented) 

Standard Residential Tenancy 

Assumed rent: $700/week ($36,400/year)    Vacancy: 5%

Profit & Loss 

Short-Term Rental (Airbnb / Stayz) 

Advantages 

• Flexibility of use – Property can be used by the owner when required (holidays, family, short-term needs). 
• Ability to sell without tenant restrictions – Property can be sold vacant at any time, without being tied to a fixed lease. 
• No long-term tenant lock-in – Pricing, availability, and strategy can be adjusted quickly. 
• Potential for higher gross income – Nightly rates and dynamic pricing can increase revenue in strong periods. 
• Control over property condition and presentation – Regular cleaning and inspections help maintain property standard. 

Disadvantages 

• Significantly higher operating costs – Management, platform fees, cleaning, utilities, and furnishing reduce net returns. 
• Income variability – Occupancy fluctuates based on seasonality, demand, and competition. 
• High management intensity – Requires active oversight or reliance on a management company. 
• Regulatory risk – Subject to ACT short-term rental rules, levies, and potential policy changes.
• Wear and tear from frequent turnover – Higher usage compared to long-term tenancy. 

Example 
Property: 3-bedroom, 2-bathroom, ~90sqm home 

Income assumptions

• Nightly rate: $230 
• Occupancy: 80% 
• Cleaning fee charged: $180 per clean 
• Cleaning frequency: 1.5 cleans per week 

Annual income calculation 

• Rental income: $230 × 365 × 80% = $67,160
• Cleaning income (pass-through): 1.5 × 52 × $180 = $14,040 
• Total income: $81,200 per year (≈ $1,560 per week) 

Profit & Loss 

Room-by-Room Rental (Shared Living) 

Advantages

• Higher total rental income – Multiple tenants generate greater combined rent than a single lease. 
• Reduced vacancy risk – Vacancy in one room does not eliminate all income. 
• Better utilisation of the property – Each room is individually monetised rather than the dwelling as a whole. 
• Flexible pricing structure – Premium rooms can achieve higher rents, increasing overall yield. 
• Strong demand in key locations – Popular near universities, hospitals, and employment hubs. 
• ​​​​​​​Potential for higher net returns – Increased income with moderate operating costs compared to other strategies. 

Disadvantages

• Higher management complexity – Multiple tenants, agreements, and coordination required. 
• Increased tenant turnover – More frequent leasing and changeovers compared to standard tenancy. 
• Greater wear and tear – Higher usage of shared spaces such as kitchens and bathrooms. 
• Utilities typically owner-paid – Power, internet, and shared costs reduce net income. 
• Potential tenant compatibility issues – Shared living arrangements can create conflicts between occupants. 
• More active involvement required – Requires hands-on management or specialised operator. 
• Limited buyer appeal when selling – Property may not suit all buyers if configured for shared living. 

Room-by-Room Rental – Example 

Income assumptions 

• Room 1: $300/week 
• Room 2: $280/week 
• Room 3: $250/week 

Total weekly income: $830/week 
Annual income: $43,160 
Vacancy: 5% 

Profit & Loss 

Homestay / Foreign Student Accommodation 

Advantages

Tax-free rental income 
→ Income for hosting up to 2 students is not taxed, significantly improving net return  

Higher income per room 
→ Up to ~$330 per week per student, or ~$660 per week for two students  

Consistent and structured payments 
→ Payments made in advance every 2–4 weeks through providers  

Strong and growing demand 
→ Universities face ongoing shortages in student accommodation 

Lower vacancy risk 
→ Students are placed and matched through organised homestay networks 

No marketing or leasing required 
→ Providers source, screen, and manage student placement 

Disadvantages

Higher level of involvement 
→ Requires hosting, communication, and support for students 

Utilities and meals included 
→ Power, internet, and food reduce overall net income 

Not a passive investment 
→ Requires active participation in day-to-day living arrangements 

Shorter stay durations 
→ Typically structured in 4-week or semester-based periods 

Lifestyle impact 
→ Students live within or alongside the home environment 

Compliance and hosting requirements 
→ Background checks and minimum standards required for approval 

Homestay Rental –  (3 Students)

Income Assumptions 

• Student 1: $330/week
• Student 2: $330/week
• Student 3: $330/week  

Total Weekly Income: $990/week 
Annual Income: $51,480 

Vacancy: 5% 

Profit & Loss 

Important Note 

Income of up to $330 per week per student (for up to 2 students) is generally exempt from income tax under current homestay arrangements 

DIS / Supported Accommodation (Leased to a Provider) 

Leasing a property to an NDIS provider is a more structured and specialised rental strategy compared to standard tenancy. 

Rather than renting the property directly to individuals, the property is leased to a registered NDIS provider under a formal agreement. The provider then manages the placement of participants and delivers the required support services within the home. 

How the Process Typically Works 

A suitable property is designed and constructed to meet the needs of supported living. This generally includes considerations such as layout, accessibility, and the ability to comfortably accommodate multiple residents. 

Once complete, the property is offered to NDIS providers operating within the Canberra region. These providers assess whether the property meets their requirements based on participant needs, location, and internal criteria. 

If suitable, a lease agreement is established between the property owner and the provider. This is typically structured as a longer-term arrangement, where the provider becomes the tenant and takes responsibility for managing the occupants and day-to-day operations. 

The provider then places NDIS participants into the property and manages all aspects of care, support, and tenancy coordination. 

Important Considerations 

NDIS leasing is not a standard residential rental model. It involves: 

• Working with third-party providers rather than individual tenants
• Ensuring the property is suitable for supported accommodation
• Establishing a commercial-style lease agreement  
• Understanding that income is dependent on securing and maintaining a provider relationship