Short-term rentals in NSW, often referred to as short-term rental accommodation (STRA), are residential properties rented out for a period of less than 3 months, commonly through platforms like Airbnb or Stayz. In NSW, STRA is regulated under planning and strata laws to balance tourism benefits with residential amenity.
STRA can be a great way to earn extra income or enjoy more flexible travel options. However, there are some important legal and compliance requirements to be aware of in NSW.
✅ Planning Rules
- Definition: STRA refers to renting out a residential property for short stays of up to 3 months at a time.
- Permitted Use: STRA is permitted in most residential zones across NSW without needing development consent, provided the property is registered and complies with relevant standards.
- Usage Limits: In some zones, un-hosted STRA (where the host is not present) is capped at 180 days per year, although hosted STRA is generally unlimited.
- Fire Safety: All STRA properties must meet basic fire safety standards, including working smoke alarms and a clear evacuation plan.
🧾 Registration & Code of Conduct
- Mandatory Registration: All STRA properties must be registered on the NSW Government STRA Register before advertising or accepting bookings. A one-off registration fee of $65 applies for the first 12 months.
- Renewal: Hosts must renew their registration and pay an ongoing annual renewal fee of $25.
- Listing Compliance: Booking platforms like Airbnb and Stayz are only allowed to list registered properties.
- Code of Conduct: Hosts and guests must follow a strict code of behaviour. Penalties apply for repeated breaches, including possible bans from hosting or booking.
- Exclusion Register: Problematic hosts and guests may be listed on a public register and banned from participating in STRA.
🏢 Rules for Strata Properties
- By-Laws: If you own a unit in a strata complex, the owners corporation can pass a by-law to prohibit STRA in non-owner-occupied lots.
- Principal Residence Rule: If the property is your main residence, strata by-laws cannot prevent you from hosting short-term stays.
- Common Areas: STRA guests must follow the same rules as residents, including respecting noise restrictions and shared spaces.
To find out more, please visit the NSW Government sites Short-term rental accommodation | NSW Fair Trading and Short-term rental accommodation | Planning, or view the FAQ Factsheet issued by NSW Fair Trading Here.
Thinking about renting out your property short-term? We can help you understand your obligations and ensure you’re set up correctly from the start. If you would like to discuss any of the above information further or have questions regarding your property, please contact our Property Team on (02) 4927 2900.