Sydney Short-Term Rental Debate: Enforce Existing Laws Before Adding Bans, Says Industry Expert

Sydney, Australia — As the City of Sydney Council considers banning short-term rentals in 11 inner-city suburbs, a leading property management expert is urging policymakers to first enforce existing regulations. Krystina Cleary, founder of Cleary & Co, warns that the current debate overlooks a systemic enforcement failure, with more than 3,000 short-term rental listings operating outside the legal framework.

Data from the City of Sydney shows 5,454 active short-term rental listings within the local government area, but only 2,468 are registered under the NSW Short-Term Rental Accommodation (STRA) framework. Cleary says this gap undermines the regulatory system and penalises compliant hosts. ‘It is a pointless exercise to make credible providers jump through hoops, yet unscrupulous operators can bypass the system entirely,’ she said.

Cleary challenges the narrative linking Airbnb to Sydney’s housing crisis, noting that short-term rental listings represent an estimated 0.9 to 1.6% of the city’s total housing stock. ‘The Greens have jumped onto this bandwagon in an attempt to gain voters,’ she said. ‘If you are a homeowner or investor paying the mortgage, doesn’t that give you the right to decide what to do with your own property?’

The City of Sydney motion, passed on 28 April 2026, directs the CEO to investigate restricting non-primary-residence short-term rentals in suburbs including Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale, where rental vacancy rates are below 3%. Cleary argues that affected homeowners are not large-scale investors but individuals using their properties to fund retirement, businesses, or medical expenses. ‘Under a ban, these owners would be hamstrung into a long-term rental model that does not allow them to use their properties for personal use,’ she said.

Cleary points to Byron Bay as a cautionary tale, where similar restrictions did not achieve their goals. ‘It did not work in Byron Bay, and it will not work in Sydney,’ she said. Instead, she advocates for enforcing the existing 180-day cap on non-hosted short-term rentals in Greater Sydney and ensuring all hosts register. ‘Without registering, you are either impacting short-term letting options or claiming to be exempt, and this should be picked up by the Department of Planning,’ she said.

Despite the uncertainty, Cleary remains optimistic about the future of short-term rentals in Sydney. ‘What we will see is a true five-star experience for visitors. Unscrupulous hosts and poorly presented properties only work in the short term,’ she said. ‘The Airbnb model is a necessary option because hotels are no longer practical for many travellers.’

For property owners assessing their options, Cleary advises a personal approach. ‘It is a personal decision for the homeowner. We provide impartial, factual advice and discuss their needs thoroughly,’ she said. The investigation by the City of Sydney is ongoing, and no ban has been implemented. For more information, visit Cleary & Co’s website at https://www.clearyandco.com.au.

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