How a $4,000 Booking Became a $40,000 Success Story

Investing in short-term rentals means choosing flexibility over a fixed lease, and for many, this can feel like a risk. Vacancy comes with an opportunity cost—every unoccupied day is a day without income. While achieving 100% occupancy is unrealistic, the reality of short-term rentals is simple: higher risk, higher reward.

With over $4 billion in property managed and more than 14 years of experience, we understand the market and know how to maximise returns. Our expertise allows us to identify the right properties, anticipate demand, and create momentum for continued success.

The following case study showcases how we increased an initial $4,000 booking by 900%, maintained high occupancy, and delivered exceptional returns—proving why short-term rentals remain a smart choice for property investors.

The Situation

Paul purchased a waterfront apartment in Sydney a few years ago for the purpose of his children using it while attending private school and university. The kids stay at the property during the school year but then spend time at home in during school holidays. It did not make commercial sense for the property to sit vacant during times of the year when it would be in high demand. Paul wanted to harness the idle capacity of the property and to generate income while it was empty. Paul thought this would be a great opportunity to try his luck with short-term rentals. He tried to have a go himself but underestimated the time required to manage calendars, rate setting, housekeeping, dealing with guests arriving and departing as well as facilitating repairs and maintenance. It became a much heavier load than he anticipated so he contacted Property Providers just before the Peak Summer Season to see what results we could deliver.

The Solution

Property Providers understood that this was a lifestyle property with enough vacancy (or opportunity) for both Paul and the agency to engage. Property Providers quickly listed the apartment using the owners existing photography, reviewed the listing quality, distributed the property to various channels as well as targeted our B2B clients (i.e. corporate relocation agents and insurance company’s). We were aggressive on pricing for immediate availability and targeted last-minute bookings … but … we kept the rates high over the peak and high peak season weeks.

The Result

Home run!  Not all guests book properties for holiday.  We quickly got a hit from one of the Insurance Companies we regularly work with. The insurer had a client (or claimant) who had experienced some flooding, and they had to move out while their property was being repaired. The enquiry started small, but we knew from experience that repairs like this often take longer than initially anticipated.  

Since we were aggressive on pricing, the initial value of the booking was a bit lower because we wanted to convert fast.  Given the reason for the stay, we knew this booking had a high chance of extending, we encouraged the owner to accept it. As expected, after the first seven days of their stay, we receive a call requesting a seven-day extension (see: Short Term Rental to an Extended Stay). This happened repeatedly, all the way through shoulder, peak and high peak seasons where the rates were significantly higher. Not only did this booking extend through high peak season with the highest rental rates of the year but the extensions were booked at the advertised rate (rack rate), not a discounted extended stay price, even though this booking ended up being a longer stay. The reason? We care about our owners, and understand the risk of vacancy, which shorter-term stays intensify the likelihood of. While we are happy to negotiate price for longer bookings, such as a four-month corporate lease, a guest extending week by week is a different scenario. At the end of all of this, the short-term extensions grossed a higher yield than if the property was booked in one go. 

Paul couldn’t believe the returns. From initially $4K, the opportunity grew to $40,000 with a 100% occupancy over the month.  This booking quite literally had a growth of 900% because of an extension we predicted.  The simple fact is that 40% of bookings extend and that these bookings are more common in renovations, corporate relocations and insurance claims, of which 30% of our bookings are made up of. These pieces of information are why you should trust your property with a professional agency like ours (see Owner Hosts Vs Agency for more information). We have this information and know when there is more chicken left on the bone. 

Want to learn more?

Property Providers is disrupting the residential rental space by blending boutique property management with luxury accommodation services.  By doing so, we can offer greater flexibility, better service and higher returns. We believe in “Helping People Live Better” by understanding that it is “Your Property”, and we should rent it “Your Way”. We welcome you to learn more about the differences between long-term leasing and short-term rentals or contact us for a personalised consultation.

At Property Providers, our core purpose is “Helping People Live Better”.  As Sydney’s most flexible residential rental agency, we are focused on Property Management and renting “Your Property, Your Way”. We have designed 6 different rental services covering all facets of Long-Term Leasing and Short-Term Stays. Unlike franchise real estate agencies, we see the value in pragmatism and flexibility. Whether you want to rent your property furnished or unfurnished, for 6 months or 5 years, we will manage your property, your way. Our bespoke marketing strategies deliver discerning international tenants who understand quality and are prepared to pay for it.  If you would like to learn more please visit our website or call us on +61 2 9969 7599

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