Short-term rentals (Airbnb) in Strata: What are the rules?

Airbnb and other short-term rental platforms have exploded in popularity across Australia. For many property owners, it’s an attractive way to earn extra income. But if your apartment is part of a strata scheme, the rules around short-term letting aren’t always straightforward.

So, what do you need to know before listing your place on Airbnb? Let’s break it down.

1. Strata by-laws come first

Every strata scheme is different, and your building’s by-laws will play a huge role in determining what’s allowed. Some schemes permit short-term rentals without issue, while others place restrictions—or even outright bans—on them.

It’s important to review your building’s by-laws carefully or check with your strata manager to avoid breaching any rules.

2. NSW laws on short-term letting

If you’re in New South Wales, state laws introduced in 2021 set clear guidelines:

• If the property is your principal place of residence, you can rent it out short-term (including on Airbnb) for up to 365 days a year.

• If it’s an investment property (not where you live), there’s a cap of 180 days per year in Greater Sydney and some regional NSW areas.

• Local councils may have additional restrictions, so always check both strata and council rules.

Other states and territories are also tightening rules around short-term letting, so it’s important to check your local legislation.

3. Owners Corporation powers

An Owners Corporation can pass by-laws that restrict short-term rentals if they are likely to:

• Cause nuisance to other residents

• Compromise building security

• Lead to excessive wear and tear on common property

For example, an Owners Corporation can pass a by-law that prevents short-term letting in lots that are not owner-occupied.

4. Insurance considerations

If you’re renting out your apartment on Airbnb, check your insurance coverage. Standard strata insurance doesn’t cover individual lot use, so you may need additional landlord insurance or short-term rental coverage to protect yourself against damage or liability.

5. Community harmony matters

Even if short-term letting is technically allowed, it can sometimes cause friction with neighbours. Issues like noise, parties, or increased foot traffic in common areas can quickly lead to complaints.

The best approach? Be upfront and respectful. If you plan on listing your place, let your neighbours know and ensure guests follow house rules.

Key takeaway

Short-term rentals in strata buildings are possible—but not always simple. The rules depend on:

• Your strata by-laws

• State legislation

• Owners Corporation decisions

Before you start hosting, check the legal and insurance requirements so you don’t end up with costly disputes.

Need help understanding your building’s by-laws around short-term rentals?

At Centric Strata, we make complex rules easy to understand and help owners stay compliant. Get in touch with our team today for expert guidance.