New Warrnambool holiday rental business fills the gap in tourism market

Wilsons Real Estate's Lucas Wilson said it had entered the short-term holiday rental space this summer and it was growing by the day.

"We just saw a bit of a need for that service for people who wanted to do that who don't want to do it themselves and manage it themselves and organise cleaners," Mr Wilson said.

He said most people who had their properties on Airbnb and Stayz managed the properties themselves.

Warrnambool City councillors are set to vote on introducing a $400 charge for owners who operate their properties as holiday rentals. It will be discussed at Monday's ordinary council meeting.

The council received 14 submissions relating to the proposed short-stay accommodation local law.

Mr Wilson said the proposed amount the council was planning to charge was "fairly minimal".

"As long as it's fair. We're not trying to steal business away from motels and hotels," he said.

"You only need to read on the weekend in Warrnambool that there's all these people in the city but they can't find a place to stay. We want to be contributing to the community - not taking away from it."

Mr Wilson said the shortage of long-term rentals had been an ongoing issue in Warrnambool for a number of years.

"It's still the case. I don't know that it has eased off. It seems a bit less than the frenzy we were having, but it's multiple applicants on most properties that are becoming available," Mr Wilson said.

"And that's not just Warrnambool, that's Mortlake and Terang as well. We're well aware of the shortage of permanent rentals and certainly not trying to put a dent in that, it's catering for the market that is already there."

Mr Wilson said while there was more expenses involved in having properties as holiday rentals, the income was higher. "It's also much more variable," he said.

"You get these big bursts on school holidays, summer and May Races and Easter where as the permanent rentals you know what you're getting every week."

They manage 13 holiday rental properties but that has doubled in the past few weeks. "We're just getting started with it," he said.

Mr Wilson said he said he got the idea from a real estate agent friend who offered the same service in Bright.

"It's been something that's been coming for a while for us," he said.

They list the properties online while also managing the cleaners and maintenance and make sure there is a gift for each guest such as a bottle of wine.

"We take away any of the hassles with it," Mr Wilson said.

"We just feel like there was a market there. We were happy to go to Peterborough, Port Campbell and probably even Halls Gap."

Mr Wilson said people coming here and staying in the holiday rentals were contributing to the local economy.

Luke McQualter, who oversees the new side of the business, said the service had been popular.

He said visitors were coming from all over Australia including South Australia and Western Australia.

With two hotels in Warrnambool being demolished last year, there was more pressure on holiday accommodation catering for tourists, Mr McQualter said.