Short-Term Rentals Like Airbnb in Strata — What Your By-Laws Say and What's Changing
Few issues divide strata communities as sharply as short-term rental accommodation. For investor owners, platforms like Airbnb and Stayz offer significantly higher returns than traditional long-term leasing. For permanent residents, a revolving door of strangers in their building means noise, security concerns, wear on common property, and a fundamental shift in the character of their home.
Australian states have taken increasingly firm regulatory positions on short-term rentals in strata — and 2025 and 2026 have brought the most significant changes yet.
The National Picture: A Patchwork of Rules
There is no national framework for short-term rental accommodation in Australia. Each state and territory has developed its own approach, creating a complex patchwork of registration requirements, day limits, levies and strata powers.
| State | Registration Required? | Day Limit (Non-Hosted) | Levy/Tax | Strata Ban Power |
|---|---|---|---|---|
| NSW | Yes — mandatory STRA Register | 180 days/year (Greater Sydney); 60 days (Byron Shire) | None currently, but under review | Yes — special resolution (75%) can ban non-hosted STRA |
| Victoria | No state register | No statewide limit | 7.5% Short-Stay Levy (from Jan 2025) on stays under 28 nights | Yes — special resolution (75%); VCAT can ban after 3 breaches |
| Queensland | No state register (under consultation) | No statewide limit; some councils impose local limits | None | Depends on local by-laws and council rules |
| WA | Yes — mandatory from Jan 2025 | 90 nights (Perth metro, unhosted) before requiring development approval | None | Limited — governed by strata by-laws |
| ACT | No state register | No statewide limit | 5% STRA levy on stays up to 28 nights | Governed by unit title rules |
| Tasmania | Permit may be required from council | No statewide limit | None | Limited |
| SA / NT | No specific registration | No statewide limits | None | Limited — local planning rules apply |
NSW: The Most Developed Framework
NSW has the most comprehensive short-term rental framework in Australia. Here's how it works in strata:
Mandatory Registration. All STRA properties must be listed on the NSW Government STRA Register before being advertised on any platform. The register tracks the number of nights a property is used for STRA and is integrated with major booking platforms (Airbnb, Stayz, Booking.com) for automated monitoring.
The 180-Day Cap. Non-hosted STRA — where the owner does not live on-site during the guest's stay — is capped at 180 nights per calendar year in Greater Sydney and nominated local government areas. Byron Shire has a stricter 60-day cap. Hosted STRA (where the owner lives on-site) has no day limit.
Fire Safety Compliance. STRA properties must have working smoke alarms (interconnected where required by the BCA), an evacuation diagram, and meet other safety requirements specified in the Code of Conduct.
Strata Banning Power. Under section 137A of the Strata Schemes Management Act 2015 (NSW), an owners corporation can adopt a by-law to ban non-hosted STRA in the building. This requires a special resolution — a vote at a general meeting where at least 75% of the votes cast support the ban. Critically, the ban cannot prevent an owner from using their lot for hosted STRA if it's their principal place of residence. Owner-occupiers who occasionally rent a spare room or let their apartment while they're on holiday are protected.
The Code of Conduct. A mandatory industry Code of Conduct sets minimum standards for hosts, guests, booking platforms and letting agents. Breaches can result in compliance action by NSW Fair Trading, including listing on the Exclusion Register — which bars an individual from participating in the STRA industry.
Victoria: The Levy Approach
Victoria took a different tack. From January 2025, a 7.5% Short-Stay Levy applies to all short-term rental bookings of fewer than 28 nights. The levy is payable by the host (or the platform, depending on the arrangement) to the State Revenue Office. Revenue is directed toward social and affordable housing programs.
Victorian owners corporations also gained expanded powers to ban short-term rentals by special resolution. However, bans cannot apply to owner-occupiers letting their principal place of residence. VCAT can also impose building-wide bans if a specific apartment accumulates three or more breaches within 24 months.
What Strata Committees Can and Cannot Do
The powers of strata committees regarding short-term rentals are often misunderstood:
| Action | Can Strata Do This? | How? |
|---|---|---|
| Ban non-hosted STRA entirely | Yes (NSW, VIC) | Special resolution (75% vote) to adopt a restricting by-law |
| Ban hosted STRA by owner-occupiers | No (NSW, VIC) | Protected under section 137A (NSW) and equivalent VIC provisions |
| Set conditions on STRA (noise, guest limits) | Yes | By-law provisions addressing guest behaviour, check-in/out times, etc. |
| Charge a levy or fee for STRA | No (currently) | By-laws cannot impose financial charges beyond standard levies |
| Enforce the Code of Conduct | Indirectly | Report breaches to Fair Trading; enforce by-law breaches through normal strata processes |
| Limit STRA to certain lots | Unlikely | Selective by-laws may face challenge as harsh or oppressive |
The Housing Affordability Angle
The debate around short-term rentals increasingly intersects with Australia's housing affordability crisis. Critics argue that every apartment used for Airbnb is one less home available for long-term rental — pushing rents higher and reducing supply for permanent residents. Supporters counter that property owners have the right to use their asset as they see fit, and that STRA contributes to tourism and economic activity.
The policy direction is clear: governments are progressively tightening STRA regulation. The NSW Government has flagged the possibility of reducing the 180-day cap to 90 nights or even 60 nights in some areas. New levies, stricter enforcement, and expanded strata banning powers are all on the table for 2026 and beyond.
Practical Advice for Strata Committees
If your building is grappling with short-term rental issues, consider reviewing your existing by-laws to ensure they address STRA specifically — generic noise and behaviour by-laws may not be sufficient. If residents support a ban on non-hosted STRA, begin the process of drafting and passing a special resolution by-law. Ensure any STRA by-law is registered with NSW Land Registry Services within six months of being passed. Maintain records of any STRA-related complaints to support enforcement action. Consider whether a balanced approach (conditions rather than a ban) might be more appropriate for your building's circumstances.
How UnitBuddy Helps
UnitBuddy's building assessment considers the impact of short-term rental activity on building wellness. High rates of STRA activity can correlate with increased common property wear, higher insurance costs, and lower resident satisfaction. UnitBuddy provides data to help committees understand how their building compares to similar schemes and make informed decisions about STRA regulation.
Short-term rental regulation is evolving rapidly. Whether you're an investor wanting to protect your rental income or a resident wanting to preserve your building's community character, understanding the current rules — and the changes coming — puts you in the strongest possible position.