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Yes, you can make money off cottages - but not by just leaving them empty and hoping someone stumbles upon them. The real profit comes from turning quiet weekend getaways into reliable income streams, especially with the rise of last-minute bookings. In 2025, Australians are more likely than ever to book a cottage at the last minute. A survey by Tourism Australia found that 42% of domestic travelers made their accommodation decision within 72 hours of departure. That’s a goldmine for cottage owners who know how to play the game.
How Last-Minute Bookings Are Changing the Game
Five years ago, cottage owners relied on seasonal bookings - Christmas, Easter, school holidays. Now, the busiest days aren’t the holidays. They’re Friday afternoons in autumn, when families realize they need a break from the city. Or Monday nights in winter, when someone’s work trip got canceled and they want to escape to the mountains.
Platforms like Airbnb, Stayz, and Bookabach have made it easy for last-minute travelers to find available cottages. But here’s the catch: if your cottage isn’t optimized for these quick bookings, you’re leaving money on the table. The cottages that earn the most aren’t always the fanciest. They’re the ones that show up first when someone types in “cottage near Adelaide” on a Thursday night.
Turn Your Cottage Into a 24/7 Booking Machine
You don’t need a five-bedroom luxury cabin to make money. Even a cozy two-bedroom cottage with a wood stove and a good view can pull in $1,200 to $2,000 a month if it’s set up right.
Start with the basics:
- Keep it clean and simple. Guests don’t want a museum. They want a place where they can relax. A tidy kitchen, fresh towels, and working Wi-Fi matter more than chandeliers.
- Set up instant booking. If guests have to wait for your approval, they’ll click away. Enable instant booking on all platforms. Even if you’re not home, use a smart lock system like August or Yale to let people in.
- Price it right for last-minute demand. Use dynamic pricing tools like PriceLabs or Beyond Pricing. They adjust your rates based on weather, local events, and how many similar cottages are available. On a rainy Friday night in the Adelaide Hills? Charge more. On a slow Tuesday in July? Drop the price by 20% to fill the gap.
- Write listings that speak to urgency. Don’t say “perfect for couples.” Say “Last-minute escape from Adelaide - book now before it’s gone.” Use photos with natural light, no filters. Show the view from the deck, the fire crackling, the coffee on the table.
Where the Real Money Is: Off-Season and Weekdays
Most owners think summer and holidays are the only profitable times. They’re wrong.
In South Australia, the quietest months are May, June, and August. But here’s what’s happening: remote workers are booking cottages for week-long stays. They’re not looking for beaches. They’re looking for silence, a desk, and a decent internet connection. One owner in Hahndorf started advertising their cottage as “Work From Cottage” and saw bookings jump 65% in winter.
Try this: offer a weekly rate that’s 30% cheaper than seven individual nights. Include a free local coffee bag and a guide to nearby walking trails. Suddenly, you’re not just renting a room - you’re selling a lifestyle.
Don’t Forget the Hidden Costs
Making money from cottages sounds easy - until you get the bill for a broken hot water system after a guest leaves a tap running. Or the $400 cleaning fee you didn’t budget for after a family brought their dog and left fur everywhere.
Here’s what you need to account for:
- Cleaning - $80-$150 per turnover. Hire a local cleaner. Don’t try to do it yourself between bookings.
- Utilities - Heating, cooling, and water add up. A wood stove helps, but gas and electricity can cost $100+ per week in winter.
- Insurance - Standard home insurance won’t cover short-term rentals. Get a landlord policy that includes guest liability. Expect to pay $800-$1,500 a year.
- Platform fees - Airbnb takes 14%, Stayz takes 10%. Factor that in before you set your price.
- Repairs and maintenance - Set aside $500 a year for small fixes. A leaky tap, a broken hinge, a faulty smoke alarm - these add up fast.
One owner in the Barossa Valley keeps a $2,000 emergency fund just for last-minute repairs. He says it’s the only thing that keeps him from losing sleep when a guest calls at 10 p.m. saying the heater’s dead.
Marketing Matters More Than You Think
Having a cottage isn’t enough. You need to be visible.
Most cottage owners post on one or two platforms and call it a day. That’s like opening a shop but only putting up a sign on one side of the road.
Here’s what works in 2025:
- Post on at least three platforms - Airbnb, Stayz, and Booking.com. Each has a different audience.
- Use Facebook Groups - Join “South Australia Weekend Getaways” or “Adelaide Day Trips.” Post your cottage there. People trust local recommendations more than algorithms.
- Run a simple Google Ads campaign - Target keywords like “last minute cottage Adelaide Hills” or “pet friendly cottage near McLaren Vale.” Spend $10 a day. It pays for itself in one booking.
- Ask guests for reviews - Send a friendly message after checkout: “Thanks for staying! If you enjoyed it, a quick review helps us keep the place open.” One five-star review can bring in three new bookings.
Who Makes the Most Money? The Ones Who Treat It Like a Business
The cottage owners who earn $30,000 a year don’t just own a property. They treat it like a small business.
They track expenses. They schedule deep cleans. They replace linens every six months. They respond to messages within an hour. They know that a guest who has a good experience will come back - and bring friends.
One couple in the Mount Lofty Ranges bought a rundown cottage for $380,000 in 2021. They spent $50,000 on renovations - new roof, insulation, solar panels, smart locks. Now they average 22 bookings a month. Their net profit? $28,000 a year. And they only work two days a month.
They didn’t get rich by accident. They got rich by being consistent.
Is It Worth It? The Real Math
Let’s say you own a cottage and you rent it out 100 nights a year. That’s about 75% occupancy - which is high for most rural properties.
At $150 a night, that’s $15,000 in gross income. Now subtract:
- Platform fees: $2,100
- Cleaning: $1,500 (10 cleans at $150)
- Utilities: $1,200
- Insurance: $1,000
- Maintenance: $800
- Marketing: $300
Total costs: $6,900
Net profit: $8,100
That’s not a fortune. But it’s $8,100 you didn’t have last year. And if you raise your rates to $180 on weekends, add a weekly discount, and boost occupancy to 120 nights? You’re looking at $13,000-$15,000 in profit.
And if you own two cottages? That’s a full-time income.
Start Small. Think Long-Term.
You don’t need to buy a cottage to start. You can manage one for an absentee owner. Or rent a cottage yourself and sublet it on weekends (check your lease first!).
Or better yet - start with one weekend a month. List your own backyard shed as a tiny cabin. Add fairy lights, a comfy chair, and a coffee station. Charge $90 a night. You’ll learn what guests want without risking a mortgage.
The cottage rental market isn’t getting smaller. It’s getting smarter. The winners aren’t the ones with the biggest properties. They’re the ones who show up, respond fast, and treat every guest like they’re the reason the business exists.
If you’re ready to make money off your cottage - start today. Not next month. Not next season. Today.
Can you make money from a cottage without owning it?
Yes. Some people rent cottages from owners on long-term leases and then sublet them for short stays. This is called “rent-to-rent.” You need the owner’s permission and a solid agreement. It’s risky if you don’t, but it’s a low-cost way to test the market. You can start with one weekend a month and scale up.
What’s the best location for a money-making cottage in Australia?
There’s no single best location, but places within 2-3 hours of major cities are hot right now. In South Australia, the Adelaide Hills, Barossa Valley, Fleurieu Peninsula, and the Mount Lofty Ranges are all seeing high demand for last-minute stays. Outside of SA, the Mornington Peninsula, Byron Bay hinterland, and the Blue Mountains are also strong. Proximity to nature, good roads, and reliable Wi-Fi matter more than fame.
Do I need a business license to rent out my cottage?
It depends on your local council. In South Australia, most councils don’t require a license for occasional short-term rentals - but they do if you’re renting more than 90 nights a year. Some, like Adelaide City Council, have stricter rules. Always check your local council’s website. Also, if you’re using a strata title property, check your by-laws - many ban short-term lets.
How do I handle guests who damage the property?
Require a security deposit through the booking platform - most allow $500-$1,000. Take photos before and after each stay. Use a checklist and have guests sign it digitally. If damage happens, file a claim through your landlord insurance. Don’t try to charge guests directly unless the platform supports it. Platforms like Airbnb have damage protection programs that cover up to $3 million in some cases.
Is it better to rent out a cottage year-round or only during holidays?
Year-round is always better. Holiday bookings are unpredictable. A storm or a public holiday cancellation can wipe out a weekend’s income. But weekday and off-season bookings are more reliable. Remote workers, local couples looking for a quiet night, and pet owners needing a short escape all book outside peak times. Use dynamic pricing to fill those gaps. A cottage booked 120 nights a year makes more than one booked only on holidays.
