Tiny Home on Wheels Short-Stay ROI in Victoria: What Could the Numbers Look Like?

Estimated read time: 5 minutes

A tiny home on wheels can give Victorian property owners a way to create beautiful guest accommodation while making better use of their land.

For people considering short-stay accommodation, one of the first questions is naturally: What could the return on investment look like?

The answer depends on the property, location, nightly rate, occupancy, operating expenses and complete project cost. This article explores three illustrative scenarios to help you understand how those variables work together.

These figures are examples—not income forecasts or guaranteed results.

Is There Demand for Short Stays?

Australia’s domestic tourism market remains substantial.

Tourism Research Australia reported approximately 113.1 million domestic overnight trips and $107.6 billion in overnight spending in the year ending March 2026.

However, demand varies considerably between destinations. Location, competition, seasonality, property appeal, pricing and guest reviews all influence individual results.

Before estimating potential income, property owners should investigate comparable accommodation in their local area.

View the latest Tourism Research Australia statistics.

What Total Project Investment Should You Use?

Manuka tiny homes currently start from $125,000 including GST.

For the scenarios in this article, we have used an illustrative total project investment of $140,000. This includes an initial allowance for delivery, site preparation, service connections and setup.

Depending on the property, the complete project cost may also include:

• Steps or modular decking
• Optional off-grid systems
• Landscaping and outdoor features
• Furniture, linen and guest supplies
• Insurance and professional advice
• Council or registration expenses where applicable

Actual costs will vary according to the property, access, services, location, upgrades and intended use.

All figures below are in Australian dollars.

How Is the Return Calculated?

The basic calculation is:

Gross annual revenue = nightly rate × 365 × occupancy rate

Net operating income = gross annual revenue − operating expenses

Simple annual return = net operating income ÷ total project investment

This is a simple operating return before finance repayments, taxation, depreciation and the value of the owner’s time.

Three Illustrative Short-Stay Scenarios

Lower-Performance Scenario

Assumptions:

• Total project investment: $140,000
• Average nightly rate: $220
• Annual occupancy: 40%
• Operating expenses: 40% of gross revenue

Estimated result:

• Booked nights: approximately 146
• Gross annual revenue: $32,120
• Estimated operating expenses: $12,848
• Net operating income: $19,272
• Simple annual return: 13.8%

This could represent a seasonal location, a new listing establishing its reputation or accommodation with higher operating expenses.

Base Scenario

Assumptions:

• Total project investment: $140,000
• Average nightly rate: $250
• Annual occupancy: 55%
• Operating expenses: 35% of gross revenue

Estimated result:

• Booked nights: approximately 201
• Gross annual revenue: approximately $50,188
• Estimated operating expenses: approximately $17,566
• Net operating income: approximately $32,622
• Simple annual return: 23.3%

This is a middle scenario intended to demonstrate the calculation. It should not be interpreted as an expected result.

Strong-Performance Scenario

Assumptions:

• Total project investment: $140,000
• Average nightly rate: $300
• Annual occupancy: 60%
• Operating expenses: 30% of gross revenue

Estimated result:

• Booked nights: approximately 219
• Gross annual revenue: $65,700
• Estimated operating expenses: $19,710
• Net operating income: $45,990
• Simple annual return: 32.9%

This represents a strong-performance scenario. Results at this level would depend on favourable demand, location, pricing, guest experience and efficient management.

What Do Operating Expenses Include?

Short-stay operating expenses may include:

• Booking-platform and payment fees
• Cleaning and linen
• Electricity, gas and water
• Insurance
• Guest consumables
• Repairs and routine maintenance
• Marketing
• Property management
• Council or registration expenses where applicable

Operating expenses will be different for every property.

An owner who manages the accommodation personally may have a different cost structure from someone using a professional property manager. Cleaning fees and other charges should also be treated consistently when calculating revenue and expenses.

Do More Guests Mean More Revenue?

Not automatically.

Occupancy measures the percentage of available nights booked—not the number of people staying.

A tiny home designed for six guests may support a higher nightly rate than accommodation for two. However, it may also have higher cleaning, linen, utility and maintenance expenses.

Guest capacity should influence your estimated nightly rate and operating expenses. It should not multiply the revenue calculation directly.

What Influences Short-Stay Performance?

Location and Property Appeal

Privacy, outlook and proximity to beaches, wineries, bushland, events or regional attractions can influence demand.

A desirable setting can support the guest experience, but location alone does not guarantee bookings.

Purposeful Design

Guests notice practical details such as:

• Comfortable sleeping areas
• A functional kitchen and bathroom
• Natural light and outlook
• Heating and cooling
• Insulation and ventilation
• Privacy
• Storage
• Easy indoor–outdoor living

Quality design may support stronger pricing and reviews, but the local market ultimately determines what guests are prepared to pay.

Guest Experience

Clear arrival instructions, reliable amenities, quality linen, responsive communication and consistent cleaning can all influence guest satisfaction and reviews.

Active Management

Short-stay accommodation is not completely passive.

Pricing, bookings, guest communication, cleaning, maintenance and reviews require ongoing attention—even when a professional manager is engaged.

A Builder and Host Perspective

Manuka Tiny Homes is based in Jan Juc on Victoria’s Surf Coast. Tremayne is a registered builder with more than 30 years of building experience.

We also host a tiny home ourselves. That firsthand experience influences the way we think about guest comfort, privacy, durability, maintenance and practical layouts.

Window placement affects light and outlook. Insulation and ventilation affect year-round comfort. Layout affects privacy, cleaning and how spacious the accommodation feels.

Explore the Sunrise Haven tiny home on wheels.

Council, Insurance and Property Suitability

Before relying on any income estimate, property owners should investigate:

• Local council requirements
• The proposed use of the tiny home
• Property access and site position
• Water, electricity and waste
• Insurance
• Privacy and proximity to neighbours
• Short-stay registration requirements where applicable

Requirements vary between properties and municipalities. A financial estimate cannot determine whether a particular property or proposed use is suitable.

Could a Tiny Home Work on Your Property?

A short-stay tiny home may be worth investigating if you:

• Own or control suitable land in Victoria
• Have a realistic total project budget of approximately $140,000 or more
• Have potentially workable access and a suitable site position
• Understand that occupancy and income are not guaranteed
• Are prepared to manage the accommodation or engage someone to do it

The first step is understanding whether your property is likely to be suitable.

Start the free Property Readiness Check.

You can also call Tremayne on 0439 994419 to discuss your property, intended use and possible next steps.

Important Information

The figures in this article are illustrative estimates only. They are not income forecasts, investment advice or guarantees. Actual nightly rates, occupancy, operating expenses and project costs vary according to location, property, competition, seasonality, management and market conditions. Independent advice should be obtained concerning council requirements, insurance, finance and taxation.