Contents
Introduction
Since the initial commencement of NSW’s short-term rental laws, further reforms have been introduced in 2025 to address housing affordability, noise, and community disruption. These changes significantly affect strata schemes, especially those with owners using platforms like Airbnb or Stayz.
Current STRA Rules (2025)
- Mandatory Registration: All STRA properties must be listed on the NSW Government STRA Register.
- Fire Safety Compliance: Properties must have interconnected smoke alarms and evacuation diagrams.
- Day Limits:
- Non-hosted STRA (owner not living on-site): capped at 180 days per year in Greater Sydney and designated areas.
- Hosted STRA: no cap.
- Owners Corporations’ Powers:
- Can ban non-hosted STRA with a 75% special resolution vote.
- Cannot restrict hosted STRA where the owner lives on-site.
- Code of Conduct: Hosts must follow behavioural standards to reduce noise and disruption.
Potential 2025 Amendments Under Review
- Reduction of 180-day cap: Possible cut to 90 nights, or even 60 nights in areas like Byron Bay.
- New levies/taxes: Targeting STRA properties to encourage return to long-term rental markets.
- Council powers: Local councils may gain discretion to impose stricter limits or bans.
- Tougher enforcement: Increased penalties and compliance audits for unregistered or non-compliant hosts.
Hosted vs Non-Hosted STRA Comparison
| Feature | Hosted STRA | Non-Hosted STRA |
|---|---|---|
| Owner lives on-site | Yes | No |
| Day limits | Unlimited | 180 days (proposed reduction to 90/60) |
| Strata ban possible | No | Yes (75% vote) |
| Compliance requirements | Registration + fire safety | Registration + fire safety |
Implications for Strata Owners
- Investment returns may shrink if caps are reduced.
- Compliance costs will rise due to safety requirements and possible levies.
- Community harmony: Strata schemes gain more control over non-hosted STRA, reducing disputes.
- Legal risk: Non-compliance could lead to fines, deregistration, or bans.
FAQs
Can my strata ban Airbnb?
Yes, but only for non-hosted STRA, with a 75% special resolution vote.
Do hosted STRA face limits?
No, hosted STRA have no day limits under current rules.
What happens if I don’t register my property?
You risk fines, deregistration, and enforcement action.
Conclusion
The NSW STRA framework has evolved significantly since its commencement. With mandatory registration, stricter safety rules, and Owners Corporations empowered to regulate non-hosted STRA, strata owners must stay vigilant. Further reforms in 2026 could reshape the profitability and viability of short-term rentals, making compliance and legal guidance essential.
Lorri is a director of PDC Law. Lorri combines excellent technical expertise with a common-sense approach to best represent her clients. She is one of few Accredited Specialists in Commercial Litigation in the Illawarra and Shoalhaven. This accreditation is testament to Lorri’s expert knowledge and skill in dealing with commercial disputes. In 2019 Lorri was awarded Regional Lawyer of the Year by Women Lawyers Achievement Awards.
