Case Study: Two HQ Apartments, Two Strategies, One clear winner.
In Queenstown’s HQ complex, two nearly identical apartments were brought to market at the same time. Same floorplan. Same view. Same location. But each owner chose a different path. We have tracked the results and bring you this case study, two properties, two strategies one clear winner!
Apartment A was rented long-term to a fixed-term tenant.
Apartment B was managed by Be Our Guest and marketed as a short-term holiday rental under a 365-day visitor accommodation consent.
Seven months in, the numbers tell a clear story.
Real-World Results: 7 Months of Performance
Before we compare the numbers, it is worth nothing that there was some set up costs to get Apartment B to the required standard needed to attract quality, short term tenants continually. Including the Styling, furnishings, professional photography and on-boarding costs the owner invested just over $14,000 to get it to this point. However, as you will soon see, this initial one-off investment is well covered within the first year.
Let’s compare both apartments side-by-side over the same 7-month period.
| Apartment A (Long-Term) | Apartment B (Short-Term) |
Weekly / Nightly Rate | $425 per week | $236 (per night average) |
Gross Revenue | $11,900 | $32,868 |
Management Fees | $1,231 | $7,559 |
Net Revenue After Fees | $10,669 | $25,309 |
Estimated Operating Costs | $138 | $5,588 |
Net Profit (7 Months) | $10,531 | $19,721 |
*We have excluded any Maintenace costs for both properties for this comparison. Also note that these calculations do not include, rates, insurance or owners finance costs.
Difference: Apartment B netted $9,190 more over the same time frame and still left calendar space for owner use.
What Could a Full Year Look Like?
Apartment B has already booked 281 nights in 7 months. With 5 months to go, it’s on track to significantly outperform its long-term counterpart.
Here’s how the full-year outlook stacks up:
Property | Apartment A (Long-Term) | Apartment B (Short-Term, Projected) |
Net Revenue After Fees | $19,737 (after fees) | $46,338 (after fees) |
Estimated Annual Operating Costs | $276 – excluding any Maintenance. | $10,230 – excluding any Maintenance. |
Net Profit (12 Months) | $19,437 | $36,108 |
Annual Difference: A projected $16,671 more with short-term letting.
More Than Just Higher Returns
What’s striking about this comparison isn’t just the profit margin, though that alone is compelling. It’s also the owner flexibility that short-term rental allows.
Apartment B’s owner still had access to their property throughout the year, between bookings. Whether it’s for ski weekends, summer holidays, or hosting friends and family, the calendar remains under their control.
And all of this was delivered without lifting a finger. Be Our Guest managed the entire process, marketing, bookings, guest communication, housekeeping, maintenance, compliance, reporting, and more.
Final Thoughts
The short-term rental market in Queenstown is not a theory, it’s a proven, high-performing model when done right.
The performance of this property didn’t just beat the long-term option, it almost doubled the owner’s net return in the same period, while offering greater lifestyle flexibility. With full consent in place and a strong year-round market, the opportunity is clear.
Be Our Guest has many more stories like this one. Reach out to us to see how we could help you achieve the same success for your property in Central Otago.
Wondering what your property could earn?
Request your free performance estimate here and let’s show you the numbers.