The City of Sydney's recent motion to investigate restricting short-term rentals in 11 inner-city suburbs has sparked a debate about the effectiveness of current regulations. Krystina Cleary, Founder of Cleary & Co, a Sydney-based short-term rental management agency, argues that instead of implementing new bans, the council should focus on enforcing existing laws that are being widely ignored.
Data from the City of Sydney reveals that there are 5,454 active short-term rental listings within the local government area, but only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework. This means more than 3,000 listings are operating outside legal requirements. Cleary highlights this enforcement gap as a systemic failure. "I am not clear on how rentals are bypassing the STRA registration, as this is required to list properties for stays under 90 days," she said. "It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely."
The motion, passed on 28 April 2026, directs the council's 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%. However, Cleary contends that the narrative linking Airbnb to the housing crisis is misleading. Short-term rental listings represent an estimated 0.9 to 1.6% of Sydney's total housing stock, a figure she says is too small to be a primary driver of housing shortages. "The Greens have jumped onto this bandwagon in an attempt to gain voters," Cleary stated. "It is a naive perspective that prime, centrally located real estate should simply be made available to everyone."
The homeowners affected by potential bans are diverse, according to Cleary. "Our clients are a diverse bunch. Some are using their asset to fund their retirement, to visit their kids and grandkids as they live elsewhere in Australia or overseas. Many are using their property income to fund their businesses, or to cover medical expenses for serious illness." She warns that a ban would force these owners into long-term rental models that cap income and restrict personal use of their properties. "With the current economic uncertainty, who does this actually serve? It did not work in Byron Bay, and it will not work in Sydney."
Cleary remains optimistic about the future of short-term rentals in Sydney, envisioning a market focused on quality. "Hopefully, what we will see is a true five-star experience for visitors to our city. Unscrupulous hosts, poorly presented properties, and operators trying to cut corners to make a fast dollar only work in the short term." She emphasizes that the Airbnb model is a necessary option in cities worldwide, as hotels are no longer practical for many travelers.
For property owners uncertain about the regulatory landscape, 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. More information about Cleary & Co can be found at www.clearyandco.com.au.
