The City of Sydney Council is exploring a ban on short-term rentals in 11 inner-city suburbs, a move that Krystina Cleary, founder of short-term rental management agency Cleary & Co, says misplaces blame and ignores a systemic enforcement gap. According to Cleary, less than 2% of Sydney's housing stock is listed on Airbnb, and the real problem is the more than 3,000 unregistered hosts operating outside the legal framework.
Data from the City of Sydney shows 5,454 active short-term rental listings in the local government area, but only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework. Cleary & Co argues that enforcing existing registration requirements would be more effective than imposing new bans. “I am not clear on how rentals are bypassing the STRA registration,” Cleary said. “It is a pointless exercise to make credible providers jump through hoops, yet unscrupulous operators can bypass the system entirely.”
The council 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—areas where rental vacancy rates are below 3 percent. Cleary contends that the debate unfairly targets homeowners who rely on short-term rental income for legitimate reasons, such as funding retirement, visiting family, covering medical expenses, or supporting small businesses. “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, who has managed properties through multiple regulatory cycles since 2017, noted that the current system already caps non-hosted short-term rentals in Greater Sydney at 180 days per year, with no cap on hosted properties. Bookings of 21 or more consecutive nights are exempt from this cap. She emphasized that short-term rentals are a necessary option in cities worldwide, as hotels are not practical for all travellers. “Hopefully, what we will see is a true five-star experience for visitors,” she said.
For property owners facing uncertainty, Cleary advises a personal approach. “It is a personal decision for the homeowner, always. We provide impartial, factual, real advice.” The investigation into potential restrictions is ongoing, and no ban has been implemented yet.
