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Not every short-term rental performs equally.
Two properties can be in the same suburb, have a similar number of bedrooms and target the same guests — yet generate dramatically different levels of revenue.
The difference is rarely just the property itself.
High-performing short-term rentals are the result of a combination of strong positioning, competitive pricing, excellent presentation, great guest experiences and ongoing optimisation.
So what exactly makes a short-term rental perform well?
Location remains one of the most important factors influencing short-term rental performance.
Properties close to major attractions, business districts, transport, beaches, hospitals, universities, entertainment precincts and other demand drivers can have a natural advantage.
However, a strong location doesn't automatically guarantee strong performance.
The property's suitability for short-term guests also matters. A well-designed two-bedroom apartment with parking, reliable Wi-Fi and easy access may outperform a larger property that offers fewer of the amenities guests actually value.
The key is understanding who the property is best suited to serve and why those guests would choose it over competing listings.
Getting potential guests to see your listing is only the first step.
The listing then needs to convince them to book.
Airbnb states that listing quality, popularity, price and location all influence how listings appear in search results. Photos, reviews, amenities and other characteristics also contribute to how guests perceive a property.
High-performing listings therefore tend to have:
A guest should be able to understand the property's key benefits within seconds of opening the listing.
One of the biggest mistakes short-term rental owners make is assuming that the highest occupancy always means the highest revenue.
It doesn't.
AirDNA specifically notes that a high occupancy rate can sometimes reduce revenue if a property is priced too low. The goal is to find the right balance between occupancy and nightly rate.
A high-performing property uses dynamic pricing rather than relying on one fixed nightly rate.
Rates can change depending on:
The objective isn't to be the cheapest property available.
It's to achieve the highest sustainable revenue for the available nights.
Reviews are one of the most powerful assets a short-term rental can build.
Airbnb says better reviews and ratings can lead to more bookings and higher earnings, while its search system considers ratings and reviews when determining listing quality.
But great reviews don't happen by accident.
They are usually the result of consistently delivering on the basics:
Accuracy → Cleanliness → Communication → Check-in → Comfort → Value
Airbnb's rating system specifically evaluates these areas, making them useful benchmarks for any property owner looking to improve guest satisfaction.
A high-performing short-term rental doesn't just aim to avoid negative reviews.
It aims to give guests a reason to leave a five-star review.
Guests expect quick answers.
Whether they're asking about check-in, parking, Wi-Fi, local recommendations or an issue during their stay, delays can quickly turn a positive experience into a negative one.
Airbnb states that response rate can affect both Superhost status and search placement, while its search system also considers host responsiveness and other hospitality factors.
For high-performing properties, guest communication should therefore be:
The best operators also anticipate common questions and provide guests with the information they need before they have to ask.
Amenities can make a significant difference when guests compare similar properties.
The most valuable amenities depend on the target market, but practical features such as high-speed Wi-Fi, parking, self check-in, air conditioning, comfortable beds and a well-equipped kitchen can make a property considerably more attractive.
Airbnb specifically recommends amenities such as high-speed Wi-Fi, self check-in and free parking as ways to help listings appeal to guests.
The important point is not to add amenities simply for the sake of having more.
Instead, identify what your target guests actually want and invest where it can improve the guest experience or help the property stand out.
Guests can't physically inspect a property before booking.
Your photos have to do that job for you.
High-quality photography can communicate the size, layout, style and overall experience of a property far more effectively than a written description.
The best listings don't simply photograph every room.
They sell the experience.
That means showing the property's strongest features, using appropriate lighting, keeping spaces clean and uncluttered, and creating a visual story that makes potential guests want to stay there.
A beautiful listing can generate bookings, but poor operations can quickly destroy its performance.
Cleaning quality, maintenance, linen, consumables and property presentation need to be consistently managed between every stay.
Guests don't care how good the property was for the previous guest.
They expect it to be just as good — or better — when they arrive.
A reliable operational system is therefore one of the foundations of a high-performing short-term rental.
The strongest short-term rental operators don't simply list a property and wait for bookings.
They continuously monitor performance and make adjustments.
Important metrics include:
AirDNA's own performance tools use metrics such as revenue, ADR, occupancy, booking lead time and review score to benchmark properties against comparable listings.
This highlights an important principle:
A property can always be improved.
If occupancy is strong but ADR is low, pricing may need attention.
If ADR is strong but occupancy is weak, the property may be overpriced or poorly positioned.
If views are high but bookings are low, the listing's presentation or value proposition may need improvement.
The numbers help identify where the opportunity is.
The biggest difference between an average short-term rental and a high-performing one is often what happens after the listing goes live.
Market conditions change.
Competitors change their prices.
New properties enter the market.
Guest preferences evolve.
Events create temporary spikes in demand.
A pricing strategy that worked six months ago may no longer be optimal today.
High-performing properties are therefore managed as an ongoing business rather than a passive investment.
There isn't one feature that makes a short-term rental successful.
Instead, performance comes from combining several elements:
Great property + strong presentation + strategic pricing + excellent hospitality + reliable operations + continuous optimisation
Getting one or two of these right can generate bookings.
Getting all of them right is what creates a genuinely high-performing property.
The good news is that you don't necessarily need to make major changes to your property to improve its performance.
Often, the biggest opportunities come from better pricing, improved listing presentation, stronger guest communication and more effective day-to-day management.
For owners who don't have the time or expertise to manage these areas themselves, professional short-term rental management can make a significant difference.
At Co-Host, we manage the strategy and operations behind high-performing short-term rentals — from pricing and listing optimisation to guest communication, cleaning and ongoing performance management.
Our goal is simple:
Help property owners generate higher rental returns without the operational burden.
If you're wondering whether your property is performing at its full potential, get in touch with Co-Host for a property assessment.
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