Sydney Short-Term Rental Expert Urges Enforcement of Existing Laws Over New Bans

As the City of Sydney Council considers banning short-term rentals across 11 inner-city suburbs, a leading short-term rental management expert is calling for enforcement of existing laws instead. Krystina Cleary, founder of Cleary & Co, argues that the current regulatory framework, which requires registration for stays under 90 days, is being widely ignored, with over 3,000 unregistered listings operating in the local government area.

Data from the City of Sydney shows 5,454 active short-term rental listings, but only 2,468 are officially registered under the NSW Short-Term Rental Accommodation framework. Cleary says this compliance gap undermines the entire system. "I am not clear on how rentals are bypassing the STRA registration," she said. "It is a pointless exercise to make credible providers jump through hoops, yet unscrupulous operators can bypass the system entirely."

The council's 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, where rental vacancy rates are below 3 percent. Cleary contends that the homeowners affected are not large-scale investors but individuals using their properties for retirement, family visits, or medical expenses. "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 also challenges the narrative linking Airbnb to the housing crisis, noting that short-term rentals represent only 0.9 to 1.6 percent of Sydney's total housing stock. "The Greens have jumped onto this bandwagon in an attempt to gain voters," she said. "It is a naive perspective that prime, centrally located real estate should simply be made available to everyone."

Despite the uncertainty, Cleary remains optimistic about the future of short-term rentals in Sydney. She envisions a market focused on quality, where "unscrupulous hosts, poorly presented properties, and operators trying to cut corners" are weeded out. "The Airbnb model of shorter-term home rentals is a necessary option in cities across the world, because hotels are no longer a practical option for an increasing number of travellers," she said.

For property owners, Cleary advises a personal decision based on individual circumstances. The investigation by the City of Sydney is ongoing, with no ban yet implemented. For more information, visit Cleary & Co.