Sandra had spent eighteen years as a claims assessor, quietly proud of how thorough and fair her assessments were. When her insurer rolled out an AI claims-triage system that could process straightforward claims in minutes, her role was “restructured” into something smaller, then eventually made redundant altogether. She describes the months afterwards as disorienting — not because she couldn’t find other office work, but because she no longer wanted to build a career around a skill a machine could do faster and cheaper. What she landed on instead was something no algorithm can fake: making a stranger feel genuinely welcome the moment they walk through the door of a place that is, for a few nights, theirs.

That is the quiet appeal of running a bed and breakfast or holiday rental. Guests are not paying only for a bed — they are paying for the warmth of a good host, the local tip that saves their holiday, the sense that someone cared about their stay. This post covers what it actually takes to start an accommodation business in Australia, from registration requirements that are tightening across the country to realistic costs, marketing channels that work, and a first 90-day plan to get your first guests through the door.

What Does It Take to Start a B&B or Holiday Rental Business?

Running guest accommodation rewards people who are naturally organised, hospitable and unbothered by the occasional 11pm phone call about a broken air conditioner. You do not need formal hospitality qualifications to get started, though a food safety certificate is worthwhile if you plan to serve breakfast, and basic first aid training is a sensible investment for any host.

The regulatory side is where new owners most often get caught out, because short-term rental accommodation rules vary significantly between states, territories and even individual councils, and they have been tightening steadily in recent years as governments respond to housing pressure and neighbourhood complaints. Common requirements to check with your local council and state government include:

  • Short-term rental accommodation registration — many states now operate, or are introducing, a formal register or licensing scheme for properties let out for short stays, often with caps on the number of nights a whole property can be let per year if it is not your primary residence.
  • Council planning approval or a development application, particularly if you are converting part of an existing home or building purpose-built guest accommodation.
  • Fire safety compliance, smoke alarm requirements and, for larger operations, a class of building certification that differs from ordinary residential use.
  • Body corporate or strata approval if your property is part of a unit complex, as many bylaws now explicitly restrict or prohibit short-term letting.

Because these rules change frequently and differ by location, always confirm current requirements directly with your council and state fair trading or planning department before advertising a single night.

Setting Up the Business

Register for an ABN through the Australian Business Register and choose a business structure — sole trader is common for a single-property host, while a company or trust structure may suit those planning to scale to multiple properties or take on investors.

Contact your local council directly and ask specifically about short-term rental or holiday letting registration, as many councils now require this before you can legally advertise on any platform. If you are leasing rather than owning the property, confirm your lease permits short-term subletting. Check body corporate rules if applicable, and look into whether your state requires a specific holiday letting code of conduct to be displayed or acknowledged by guests.

Insurance needs particular attention here, because standard home and contents insurance typically excludes commercial guest use. You will need a specific short-term rental or holiday letting insurance policy, which should include public liability cover — often at a higher limit than a standard homeowner’s policy, given the number of different guests passing through — plus cover for guest-caused damage, loss of income if the property becomes uninhabitable, and landlord contents cover for furnishings.

What It Costs to Get Started

Costs depend heavily on whether you are converting an existing spare room or fitting out a dedicated rental property, but a realistic budget typically includes:

  • Fit-out and furnishing: $5,000 to $8,000 for a single guest room done simply, up to $30,000 or more for a fully self-contained holiday rental with kitchen, linen, and outdoor area.
  • Council registration and any planning or building compliance costs: several hundred to a few thousand dollars, more if fire safety upgrades are required.
  • Short-term rental insurance: typically $800 to $2,500 per year depending on property size and guest capacity.
  • Professional photography: $300 to $800, and genuinely worth every dollar, since listing photos are the single biggest driver of bookings.
  • Listing platform setup and a direct booking website: $500 to $2,000 to establish, plus ongoing platform commission of roughly 3% to 15% per booking depending on the channel.
  • Welcome amenities, linen, cleaning supplies and a cash buffer for the first few months of lower-than-hoped occupancy.

All up, a single spare-room B&B might launch for $8,000 to $15,000, while a dedicated self-contained holiday rental more commonly requires $25,000 to $50,000 once furnishing, compliance and a reasonable buffer are factored in.

Finding Your First Customers

List on Airbnb and Booking.com from day one — between them they cover the overwhelming majority of people actually searching for short stays, and each platform’s algorithm rewards new listings with a temporary visibility boost, so get your listing genuinely excellent before it goes live rather than improving it after. Invest properly in your photos and a written description that speaks to a specific type of guest rather than trying to appeal to everyone.

Set up a Google Business Profile even for a single-property rental, as many guests search directly on Google Maps before opening a booking app. Reach out to your regional tourism association, which often maintains its own accommodation directories and can be a useful referral source, particularly for guests avoiding platform fees. Instagram works well for showcasing the property and the local area, especially through guest experience content rather than just empty-room photos. Once you have a handful of stays behind you, ask happy guests for reviews on every platform you’re listed on — reviews compound quickly and are the strongest single factor in future bookings.

Common Mistakes First-Time Owners Make

  • Advertising before confirming council registration requirements, which can result in fines or forced delisting once discovered — always check first, even if it delays your launch.
  • Underinsuring the property by assuming a standard home policy will cover paying guests, only to find a claim rejected after real damage occurs.
  • Pricing purely by copying nearby listings rather than tracking your own occupancy and adjusting for season, local events and midweek versus weekend demand.
  • Neglecting the guest communication experience — slow responses to enquiries and messages are one of the fastest ways to lose bookings and damage your ranking on listing platforms.

Your First 90 Days

Days 1–30: Register your ABN, contact your council about short-term rental registration, and confirm body corporate or lease permissions if relevant. Begin the fit-out and source short-term rental insurance quotes from at least two brokers.

Days 31–60: Finish furnishing, book a professional photographer, and write your listing description. Set up house rules, a guest guidebook and a cleaning routine or cleaner arrangement, then complete registration on Airbnb and Booking.com.

Days 61–90: Go live with an intentionally competitive launch price to build initial reviews quickly, respond to every enquiry within a couple of hours, and after your first five to ten stays, review your pricing and calendar settings based on actual demand patterns.

Considering a related venture? Our guides to adventure or outdoor activities business, event venue hire business and entertainment services business walk through the same kind of first-90-days planning.

Sandra’s first guests were a retired couple from Perth who left a review saying the homemade shortbread on arrival was “the nicest surprise of our trip.” No claims-processing algorithm has ever made anyone feel that way, and it’s unlikely one ever will. If you’re standing where Sandra stood — capable, a little shaken, and looking for work that still feels like yours — GrowOnline can help carry the load on the market research, website, and marketing systems side, so you can focus on the welcome.