Renting a beach house on Victoria’s Mornington Peninsula is a yearly ritual for many who have raised their families and formed bonds over years with other ‘holiday-neighbours’ who become lifelong friends.

Rather than investing in a beach house, used only a handful of times during the year, some families opt to rent a property. On the flip side, owners of these homes receive an income, and peak times offer an opportunity for peak rental rates. “The range of houses available varies according to your budget. It generally starts at around $2,000 per week for a cosy, but comfortable three-bedroom cottage and can reach up to $25,000 for a multi-million dollar mansion,” says Andrew Hall, Partner with Kay & Burton and Property Manager for Holiday Rentals on the Peninsula.

Portsea, Sorrento, Flinders and Red Hill are some of the popular destinations and every possible type of accommodation can be found. Many visitors come to enjoy the coastal living, within easy reach of some of Australia’s best wineries. Others are looking for quality time with the family and are leasing three to four bedroom homes. Air conditioning and wi-fi are the ‘norm’, with tennis courts and swimming pools available as the price heads north. For $25,000 per week, the house can include up to seven bedrooms and the lavish living areas that one would expect.

One issue that arises often is pets (the family pet is an integral part of the family and a holiday without the dog is just not the same) "We have a number of pet friendly houses and I’ve found that most owners don’t mind pets, but they like to know in advance,” he adds. Guests are advised to bring their own sheets and towels or simply hire them in from a local linen hire company Baylinen.


Even though the beach house is set out in a certain way by the owners, according to Hall, guests can tend to rearrange things, whether it be glasses or the occasional armchair. “Seasoned owners have learnt to be a little flexible,” says Hall, who sees the benefit of holiday leasing on the Peninsula. “It helps the owners offset some of their costs, such as rates or maintenance and there can be some terrific tax depreciation benefits.


Holiday letting income might assist the owners to purchase another home,” says Hall, who rents approximately half of the same houses to the same families every summer. “It’s a win-win for both parties, guests understand, that it’s not the same as staying at a hotel, they are renting someone else's idea of the perfect beach house.

There are many other benefits to holding a fully furnished property on the Peninsula, with some owners having their annual holiday during the pre-season, holiday letting it through the peak and then allowing us to lease it on the permanent rental market for the remainder of the year. These clients enjoy the best of all options. We have other clients who use the holiday letting income to fund their own holiday somewhere else in the world.

In recent years, with changes in legislation regarding holiday rentals and vacant property taxation, many people are uncertain of if or how they may be affected.

The Mornington Peninsula Council has introduced some provisions to ensure that holiday letting occurs peacefully and without any disruption to local residents and with an appointed agent on hand to assist, these requirements are easily managed. Additionally, the governments introduction of Vacant residential land tax, has some owners are questioning the viability of leaving properties vacant long term and are exploring the many options available.

Andrew suggests that client’s consult with their accountant to ensure the options are completely right for them and provided these links for easily accessible information.

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