Should Buildings Allow Short-Term Parking Rentals?

Many Australian apartment buildings are sitting on underutilised parking. Research from RMIT University found that around 20% of apartment households have more parking spaces than they need, while others have none, leaving a large share of off-street parking unused for long periods. 

Car ownership remains lowest and slowest-growing in Australia’s largest inner-city areas, particularly Sydney and Melbourne, where higher density and transport alternatives reduce reliance on private vehicles.

A study from the Australian HR Institute also showed hybrid work remains the dominant model in Australian workplaces, with most employees attending the office two to three days a week or with no fixed attendance requirement. This, in turn, significantly reduces full-week demand for workplace parking.

Recent reports also indicate a whopping 83% of AU companies intend to hire over 60% of their workforce as remote workers.

Together, these shifts leave more parking sitting empty, while buildings still carry the cost of maintaining it.

For building owners and managers, this raises a practical question. How should vacant parking be managed? Short-term parking rentals can put empty bays to work, while long-term arrangements offer predictability and lower turnover.

This guide explains the practical trade-offs between short-term and long-term parking rentals, helping property owners and managers decide whether short-term parking is the right fit for their building.

What Counts as Short-Term Parking in Australian Buildings

Short-term parking typically means parking that is not tied to a long-term lease or exclusive user. These bookings are time-bound and designed to meet variable demand rather than ongoing residency needs.

 This usually includes:

• Daily or casual parking, where drivers park for a single day or a few days.
• Commuter parking, particularly in CBDs and inner-city areas where drivers need weekday access but not a permanent space.
• Visitor and service parking, such as trades, contractors, carers, or short-term guests.
• Event-driven demand, where nearby offices, hospitals, schools, or venues create temporary spikes in parking needs.

Short-Term vs Long-Term Parking Rentals: At-a-Glance Comparison

Before we dive into the pros and cons of short and long term parking, the table below summarises the key differences between short-term and long-term parking rentals, making it easier to compare revenue, utilisation, and operational trade-offs at a glance.

Pros of Short-Term Parking Rentals

Short-term parking rentals maximise utilisation by matching parking supply to fluctuating, day-by-day demand, rather than locking bays into fixed arrangements that often go underused.

• Maximises revenue from underused parking spaces
  Short-term pricing allows buildings to earn from spaces that would otherwise sit empty on low-attendance days. Revenue is tied to actual usage, not fixed assumptions about daily demand.
• Higher bay utilisation
  Short-term rentals let spaces be used when demand actually exists. Bays that might otherwise sit empty on quieter days can be filled by variable, short-notice demand.
• Easier demand capture than annual parkers
  Short-term demand is broader and easier to reach. Visitors, contractors, casual commuters, and event attendees are actively looking for parking without wanting long commitments.
• Flexibility as building needs change
  Short-term arrangements give property teams room to adjust. Spaces can be added, removed, or repurposed as tenant requirements, access rules, or operational priorities shift.
• Supports short-term access demand
  Many buildings experience parking demand in bursts rather than consistently every day. Short-term rentals align better with guest access, overflow periods, and irregular attendance.

Cons of Short-Term Parking Rentals

Short-term parking rentals improve utilisation, but they come with trade-offs around predictability, operations, and access control that property teams need to consider carefully.

• Less predictable income
  Revenue fluctuates with demand. Unlike long-term arrangements, short-term parking does not provide guaranteed monthly income, which can make forecasting harder.
• Higher operational complexity
  Short-term use introduces more moving parts. Bookings, access windows, and turnover all need to be managed, increasing coordination compared with a single long-term parker.
• Greater reliance on active demand
  Short-term parking depends on consistent market demand. If local conditions change or competing supply increases, utilisation can drop quickly.
• Increased access and security considerations
  Having more drivers access your parking spaces means more access events. Without clear controls, this can increase the risk of misuse, tailgating, or confusion around who is authorised to park.
• Not always suitable for residential or restricted buildings
  Some buildings are not designed for regular short-term access. Residential strata rules, shared access points, or tight security protocols can limit feasibility.

Pros of Long-Term Parking Rentals

Because long-term parking is often the alternative to short-term use, buildings need to understand the benefits and trade-offs of locking bays into ongoing arrangements.

• Predictable income
  Long-term parking delivers consistent, recurring revenue. Bays are paid for regardless of daily attendance patterns, which makes budgeting and income forecasting simpler.
• Lower access complexity
  With the same parker using the space over time, access rules are easier to manage. Fewer users mean fewer access changes, handovers, or exceptions to handle.
• Clear accountability for each bay
  Long-term arrangements assign responsibility to a single user. This reduces confusion about who is authorised to park and simplifies issue resolution if problems arise.
• Better fit for residential buildings
  Residential properties often prioritise security, routine, and minimal disruption. Long-term parking aligns better with strata rules and shared access environments where frequent turnover is not practical.

Cons of Long-Term Parking Rentals

Long-term parking rentals provide stability, but they can limit utilisation and reduce a property management team’s ability to respond to changing demand.

• Lower utilisation when usage varies
  When long-term parkers don’t drive in every day, assigned bays can sit empty. This is common in hybrid work environments where on-site usage fluctuates.
• Harder to reallocate as demand changes
  Once a bay is locked into an ongoing arrangement, it cannot be easily reassigned. If demand shifts or building needs change, flexibility is limited until agreements end.
• Missed revenue during peak or event periods
  Long-term pricing does not adjust to short-term demand spikes. Buildings may miss higher-value opportunities during busy periods by keeping bays fixed.
• Vacancy risk when a parker leaves
  If a long-term parker exits, the bay may remain unused until a replacement is secured, creating gaps in income.
• Less responsive to mixed-use demand
  Buildings with visitors, contractors, or irregular access needs may find long-term parking too rigid to support changing day-to-day requirements.

Choosing the Right Parking Model for Your Building

The factors below can help determine which parking model is most appropriate for your building.

Building type

Residential buildings usually prioritise consistency and limited turnover. Commercial and mixed-use buildings can often accommodate more variability if access and management systems allow it.

Location

Buildings in CBDs, near hospitals, universities, or event precincts tend to experience uneven demand. Suburban or residential-focused locations are more likely to suit steady, ongoing use.

Access systems

Buildings with automated access, clear permissions, or flexible controls can support more frequent changes. Manual systems or shared access points typically favour simpler arrangements.

Strata tolerance for turnover

Some strata committees are comfortable with regular changes in who uses the parking spaces. Others prefer a fixed set of known users. This tolerance often determines what is practical, regardless of demand.

Income vs control preferences

Some property teams prioritise predictable income and minimal oversight. Others are willing to accept variability in exchange for higher utilisation. Being clear about this preference helps avoid friction later.

How Parkhound Supports Both Models 

Parkhound supports both short-term and long-term parking models by formalising access, payments, and records, without forcing buildings into informal or hard-to-manage arrangements.

Controlled bookings

All parking use is tied to a confirmed booking. This removes ambiguity around who is authorised to park and when, regardless of duration.

Clear access rules

Access conditions are defined upfront and applied consistently. This reduces confusion, misuse, and one-off exceptions that often arise with informal arrangements.

Centralised payments and records

Payments, booking history, and usage records are handled in one place. This creates a clear audit trail and avoids off-platform payments or manual reconciliation.

Structured handovers instead of ad-hoc arrangements

While physical handovers may still be required, Parkhound provides a consistent process for managing them. This avoids reliance on emails, texts, or side agreements that increase risk.

Closing Takeaway

Short-term parking rentals can work for some buildings and cause headaches for others. It comes down to how the building operates and how much change it can comfortably handle.

If a building has clear access rules, can manage turnover, and is set up to handle variable use, allowing short-term parking can make sense. If it relies on fixed access, predictable routines, and minimal disruption, long-term parking is usually the safer option.

The real risk isn’t short-term or long-term parking. It’s unmanaged parking. When arrangements are clear and controlled, either model can work. When they’re not, problems tend to show up fast.

For buildings that want to support either model without relying on informal agreements, Parkhound for Business provides a structured way to manage bookings, access, and records while keeping control with the property team.