If you have a property that you want to rent, there are several factors that you should consider in deciding whether to rent a property as a vacation or a rental place to stay. For example, the location of a property can add a demand.
If, for example, it is near the beach, it might make it more desirable and quite easy to rent as a vacation rental. Another practical consideration is whether your property is furnished and will be there when you want to rent it – this is an important requirement for vacation rentals but not for residents.
If you also want to use it and spend time there, you better rent it as a vacation rental. The first real question is whether you need to worry about the law regarding tenants and rental property. In Australia, there are different laws that apply to vacation versus rental housing that need to be considered.
These legal requirements differ depending on the state or region in which vacation rentals are located. If you plan to rent out your property as a housing lease, there are very strict legal requirements regarding rental contracts, rental fees, and inclusions, termination or having your tenant leave and the amount and bond binding for example.
Vacation rentals are much easier in terms of understanding the laws that you need to obey. There are very few laws governing vacations aside from ordinary consumer protection laws that require advertisements to match what you provide as property.