Can the Committee Stop an Airbnb or Short-Term Rental?

A Detailed Guide for NSW Self-Managed Strata Schemes

Short-term letting through platforms like Airbnb, Stayz and Booking.com is one of the most common issues faced by strata committees.

It affects:

• building security
• noise and behaviour
• insurance exposure
• use of common property
• planning compliance
• enforcement of by-laws

For self-managed schemes, misunderstanding the rules can lead to unenforceable decisions, invalid by-laws, and disputes with owners.

This guide explains clearly when a committee can – and cannot – stop short-term letting.

1. Can the Committee Stop Short-Term Letting?

The core position under NSW legislation is:

A scheme may prohibit short-term letting only when the lot is not the owner’s principal place of residence, and a compliant by-law is in place.

If the owner lives in the lot as their main home, they may short-term let it while temporarily away unless:

the use breaches planning rules, or
the use causes nuisance or safety issues

A committee cannot simply “vote to ban Airbnb.”

A properly drafted and registered by-law is required.

2. When the Scheme Can Prohibit Airbnb

While every building is different, most schemes can restrict or prevent short-term letting in the following situations:

1. A Valid Short-Term Letting By-Law Exists

A compliant by-law is the foundation for enforcement.

Without one, action is often unsuccessful at NCAT.

2. The Lot Is Not a Principal Residence

If the resident does not live there permanently, the scheme may completely prohibit short-term letting.

3. Planning Rules Prohibit Tourist or Short-Stay Use

Some councils restrict short-term accommodation through zoning.

If zoning prohibits it, the scheme can act.

4. The Use Causes Nuisance or Safety Risks

Noise, repeated disturbances, overcrowding, damage, or security issues allow committees to issue enforcement notices.

3. When the Scheme Cannot Stop It

A committee generally cannot prohibit short-term letting when:

• the lot is the owner’s principal residence
• the owner only short-term lets the lot when away
• no valid by-law exists
• there is no evidence of nuisance or planning breaches
• the use complies with legislation

Attempting to restrict lawful use may result in orders being overturned at NCAT.

4. Steps the Committee Should Take Before Taking Action

Self-managed schemes should follow a structured process:

Step 1: Confirm Principal Residence Status

Committees may request reasonable evidence when required.

Step 2: Check the Registered By-Laws

Confirm whether a valid short-term letting by-law exists and is enforceable.

Step 3: Document Behaviour and Impacts

Record nuisance, access issues, overcrowding, security breaches, or misuse of common property.

Step 4: Check Council Zoning

Determine whether tourist or short-stay use is prohibited for the building.

Step 5: Prepare Correct Documentation

This includes notices to comply, warning letters, motions for meetings, and evidence logs.

5. Enforcement Options for Committees

• Warning letters
• Notices to Comply
• NCAT applications
• Orders requiring cessation of unlawful use
• Penalties for breaching NCAT orders
• Reasonable security and access adjustments (if compliant)

Accurate documentation and correct process are essential for effective enforcement.

Final Thoughts

Short-term letting issues can be managed effectively when committees understand their powers and limitations.

With a compliant by-law, clear evidence, and proper process, self-managed schemes can regulate short-term letting and maintain building security, amenity and compliance.

Strata On Demand Can Help

Strata On Demand provides professional support for self-managed schemes across NSW, offering 30+ services designed to simplify your workload, reduce risk, and deliver professional documentation without the cost of a full-service strata manager.

No contracts. No full-service strata manager fees.

Pay only for the services you need, when you need them.

For managing short-term letting issues, these are the five most relevant services:

By-Law Drafting, Lodgement & Review

Creates enforceable, compliant short-term letting by-laws for your scheme.

Drafting Notices & Letters

Professional compliance notices, warning letters and correspondence for short-term letting breaches.

Application Review & Approval Management – Short-Term Letting

We review short-term letting applications, confirm principal residence status, ensure compliance with by-laws, and prepare approval or refusal letters.

Compliance Health Check

Identifies missing by-laws, compliance gaps, and risks that affect your ability to regulate short-term letting.

Tribunal Preparation (NCAT)

We prepare structured documentation for NCAT applications involving short-term letting disputes or enforcement.

If your scheme needs help controlling or regulating short-term letting, contact Strata On Demand now.