09 May 2025
Winter has long been considered the quieter season for property owners, but the story is shifting on Sydney’s Northern Beaches. This is largely due to the close to 5,000 holiday lets listed between Stays and Airbnb combined as of April 2025 in Northern Beaches Council suburbs.
Unsurprisingly, many of these short-term holiday rentals often return to the long-term market when the cooler months arrive. While this can pose a challenge for landlords, understanding this seasonal shift and how to leverage it to your advantage can actually put you in a stronger position.
Here, we outline what to look out for during this season if navigating a lease renewal and alternatives worth considering that can also maximise your investment.
Seasonal shift in supply for tenants on Sydney’s Northern Beaches
Over the winter months, a notable seasonal shift occurs in Sydney’s Northern Beaches district. With summer holidays and warmer weather retreating, many owners of short-term holiday lets pivot back to seeking long-term tenants. As a result, this floods the rental supply and puts downward pressure on rental prices, particularly when tenant demand also softens slightly in the cooler months.
As such, if you’re a landlord approaching a winter lease renewal on the Northern Beaches, it is vital to be aware of these dynamics. This spike in supply can make the market more competitive, potentially leading to longer vacancy periods or a need to reduce rental pricing depending on current market conditions and demand.
How winter affects rental prices and tenant leverage
Should winter rental vacancy rates on the Northern Beaches increase, tenants may also find themselves in a stronger negotiating position. Those who know the market conditions may seek to negotiate lower rents, longer notice periods or more flexible lease terms at renewal time.
As a landlord, being prepared for this possibility and factoring it into your lease renewal strategy ensures you are better placed to respond. Of course, flexibility is important, but so is knowing when to stand firm based on your property’s unique appeal and the broader market conditions.
What to review before offering a renewal
Before offering a lease renewal to your current tenant, we recommend taking the opportunity to review your situation thoroughly. Focus on:
Lease terms: Check if adjustments could benefit your long-term goals, such as moving to a slightly longer fixed term to secure stable income.
Rent pricing: Assess current winter rental trends in the Northern Beaches to ensure your asking rent is competitive yet realistic.
Property condition: Use the quieter season to inspect for maintenance needs, upgrades, or cosmetic improvements that will enhance appeal.
Tenant performance: Consider the tenant’s payment history, property care, and communication when deciding whether to increase or decrease rent.
A winter lease renewal does not have to be a challenge – with a well-timed and well-considered renewal strategy, you can avoid unnecessary vacancy periods and protect your rental returns.
Switching from holiday letting to long-term renting
Ever wondered whether a mix of leasing strategies could work in your favour? Some landlords who use their property for short-term letting return it to the long-term rental market during winter and back to short-term during summer. While this approach can provide a steadier income stream through the off-peak season, it can also come with some trade-offs.
Pros:
Regular, predictable rental income
Less frequent property wear and tear compared to high-turnover holiday stays
Lower management costs in some cases
Cons:
Longer-term leases reduce flexibility if you want to pivot back to holiday letting for summer
Different insurance and compliance obligations
Potential need for minor re-furnishing or lease-specific upgrades
If you are thinking about making this switch or wondering how it could work for you, our Northern Beaches property management professionals can help. We can help you structure a plan that minimises risk and maximises returns so you can make an informed decision.
Utilise winter as a smart planning window
While many landlords view winter as a tougher time to secure tenants, it is also a prime opportunity to set your property and portfolio up for success. Some ways you can take advantage of the quieter market include:
- Reviewing your entire property portfolio’s performance
- Planning renovations or upgrades with minimal tenant disruption
- Assessing your rental yields and costs
- Locking in longer lease terms where possible to secure income through to the next peak period
By staying proactive, you can reduce the risk of vacancies, boost your property’s appeal, and take control of your investment’s performance well before the busy summer season returns.
Secure stronger results with expert property management
If you are navigating winter lease renewals or considering a move from short-term to long-term letting or a mix of these, Cunninghams can help. Our experienced property management team understands the unique trends shaping Sydney’s Northern Beaches rental market. Contact our team today to learn more about how we can help you to secure the best outcomes for your rental property in all seasons.
