November 17, 2025

Short-Term Letting in Strata: Airbnb, Rules and Your Rights 

Platforms like Airbnb have exploded in popularity over the last few years, but they can be a tricky fit in strata communities. While some owners see them as a great way to make extra income, others worry about noise, security, and the constant stream of new faces in the building. 

That’s why it’s so important for committees to strike the right balance between individual rights and the wellbeing of the whole community. Some buildings allow short-term letting, others restrict it, and plenty sit somewhere in the middle. If your by-laws aren’t clear, it often leads to confusion and disputes about what’s actually allowed. 

Something else that often gets overlooked is awareness. It’s not just short-term guests who need to understand the rules — everyone in the community should know and follow the by-laws. When all residents and owners are informed, it helps prevent misunderstandings, reduces complaints, and makes it easier for committees to manage expectations consistently. 

The good news is that a bit of planning and clear communication can go a long way. Here are some simple steps committees can take to help manage short-term letting effectively. 

Three Helpful Tips for Committees 

1. Tidy up your by-laws 
If your by-laws don’t clearly address short-term letting, it’s worth reviewing them. Even if your community is comfortable allowing it, having clear, well-communicated rules makes expectations easier for everyone — long-term residents, short-term guests, and owners alike. 

2. Talk about the “why” 
Rules work best when people understand the reasoning behind them. Use newsletters, notices, or meetings to explain the risks and responsibilities around short-term letting — including security, wear and tear, and insurance gaps. When all residents understand the “why,” they’re more likely to support and follow the “what.” 

3. Be fair and consistent 
Nothing frustrates residents more than inconsistent enforcement. Make sure you have a transparent process for managing complaints or by-law breaches, and apply it equally to everyone. A clear, consistent approach reinforces that the committee is acting for the good of the whole community. 

FAQs for Committees 

Can we completely ban Airbnb or other short-term letting? 
It depends on your state’s legislation. Some jurisdictions give owners the right to let their property on a short-term basis, while others allow schemes to pass by-laws restricting or regulating it. Always check the legislation before drafting or enforcing by-laws.

What happens if someone ignores the rules? 
If a resident breaches the by-laws, the committee can issue a formal notice of breach. If the behaviour continues, the matter can be escalated in accordance with the applicable legislation, which may include mediation or tribunal processes. A clear process helps the committee act confidently and consistently.

Do we need to change our insurance if owners use Airbnb? 
Yes — committees should confirm with their insurer whether the building is covered for short-term letting. If not, additional cover may be required. Without this, the entire community may be exposed to financial risk.

Short-term letting doesn’t have to divide a building. With clear rules, strong communication, and consistent community-wide understanding of the by-laws, committees can help protect their scheme’s security, harmony, and long-term value.  

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