Laws & By-Laws

Short-Term Rentals Like Airbnb in Strata: What Your By-Laws Say and What's Changing

Airbnb and short-term letting in strata buildings is one of the most divisive issues in Australian apartment living. From mandatory registration to new levies and strata banning powers, this is the full picture for 2026.

16 February 2026 · 6 min read

On this pageIn plain English

In plain English
Different rules in each state
The NSW framework
Victoria's levy approach
What strata committees can and cannot do
Housing affordability
Practical steps for strata committees
Using UnitBuddy for this
Further reading
Related reading

In plain English

The core split is hosted versus non-hosted letting.
Most strata schemes can regulate impacts even where they cannot ban every use.
A good by-law is enforceable, specific and matched to the building's actual problems.

Short-term letting arguments are really about control of the building: who gets access, who bears the disruption, and who receives the income.

Short-term rental accommodation divides strata communities. Platforms such as Airbnb and Stayz can pay investors more than a long-term lease, while permanent residents deal with noise, security concerns and wear on common property.

Australian states regulate short-term rentals differently, with several changes taking effect in 2025 and 2026.

Different rules in each state

There is no national framework for short-term rental accommodation in Australia. Each state and territory sets its own 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	No specific statewide STRA register	No statewide limit	None	Local planning and corporation rules apply
NT	No specific statewide STRA register	No statewide limit	None	Local planning and body corporate rules apply

The NSW framework

NSW has the most comprehensive short-term rental framework in Australia. In strata, it usually works like this:

Registration is mandatory. 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 non-hosted cap is 180 days. Where the owner does not live on-site during the guest's stay, STRA 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.

STRA properties must comply with fire-safety rules. They need working smoke alarms, interconnected where required by the BCA, an evacuation diagram and the other safety measures in the Code of Conduct.

Strata schemes can ban non-hosted STRA. Under section 137A of the Strata Schemes Management Act 2015 (NSW), an owners corporation can adopt a by-law to ban it in the building. This requires a special resolution, with at least 75% of votes cast supporting the ban. The by-law cannot prevent hosted STRA when the lot is the owner's principal place of residence.

The Code of Conduct sets mandatory minimum standards for hosts, guests, booking platforms and letting agents. Breaches can lead to NSW Fair Trading action, including listing on the Exclusion Register, which bars an individual from participating in the STRA industry.

Victoria's 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.

Identify STRA activity in scheme
Check state rules and registers
Conditions or non-hosted ban?
Draft by-law with specifics
Pass special resolution (75%)
Register and enforce with records

How a committee moves from observing STRA activity to an enforceable by-law.

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

Housing affordability

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.

Governments are tightening STRA regulation. The NSW Government has flagged 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 under consideration for 2026 and beyond.

Practical steps for strata committees

Review whether the existing by-laws address STRA specifically. Generic noise and behaviour provisions may not be enough.
If residents support a ban on non-hosted STRA, draft a by-law and put the special resolution to owners.
Register any NSW STRA by-law with NSW Land Registry Services within six months of it passing.
Keep records of STRA-related complaints to support enforcement.
Decide whether conditions would address the building's problems better than a ban.

Using UnitBuddy for this

UnitBuddy's building assessment records short-term rental activity alongside common-property wear, insurance costs and resident satisfaction. Committees can compare the building with similar schemes before deciding how to regulate STRA.

Check the state rules, the scheme's by-laws and the complaints record before proposing a ban or new conditions.