Can Your Body Corporate Ban Airbnb? State-by-State Rules 2026

Queensland says yes. Victoria says maybe. NSW says it depends.

If you're trying to figure out whether your body corporate can ban Airbnb or other short-term rentals, the answer is frustratingly complicated. The rules vary dramatically between states, and they're changing fast.

Victoria just launched a 7.5% levy on short-term rentals. Queensland explicitly prevents body corporates from banning them. NSW lets you restrict them under certain conditions. South Australia sits somewhere in the middle.

For building owners, this creates real problems. Short-term rentals can affect insurance premiums, building security, noise complaints, and wear and tear on common property. But they also represent income for some owners, and outright bans aren't always legal or practical.

Before we get into the state-specific rules, if you're concerned about how short-term rentals might affect your body corporate fees, you might want to review: Are My Body Corporate Fees Too High? and What Are Body Corporate Fees?

Why Body Corporates Want to Ban Short-Term Rentals

It's not just neighbors being difficult. There are legitimate concerns that come up repeatedly in AGMs across Australia:

Insurance Premiums

This is the big one. Victorian data shows that buildings with high short-term rental activity face insurance premium increases of 15-40% compared to residential-only buildings. Why? Higher turnover means more strangers in the building, higher theft risk, more potential for damage, and statistically higher claims rates.

Insurance companies aren't being unreasonable here. The data shows short-term rental properties generate more claims. Someone renting an apartment for three nights doesn't treat it the same as someone living there permanently. And when that translates to water damage, theft, or liability claims, everyone's premiums go up.

Security and Safety

Permanent residents know who belongs in their building. When you've got a constant rotation of short-term guests, security becomes harder to manage. Key cards get duplicated, main door security gets compromised, and packages go missing.

More seriously, some buildings have had issues with unauthorised parties, excessive noise at all hours, and strangers wandering common areas. Not every short-term rental causes these problems, but enough do that body corporates are paying attention.

Wear and Tear

Common property takes more of a beating when you've got higher turnover. Lifts get used more heavily, lobbies see more traffic, and facilities like pools and gyms face constant use by people who don't live there. That accelerates maintenance costs and shortens asset lifespans.

Amenity and Lifestyle

Some owners bought apartments specifically for quiet residential living. They didn't sign up to live next to what's effectively a hotel. Late-night arrivals, luggage trolleys at 11pm, and weekend parties aren't what they expected when they purchased.

Property Values

This one cuts both ways. Some argue short-term rentals reduce property values because buyers don't want to live in a transient building. Others argue they increase values because investors can generate higher rental yields. The data is mixed.

Related: Body Corporate Questions Before Purchasing

State-by-State Rules: What You Can Actually Do

Queensland: Cannot Ban (But Can Regulate)

Bottom line: Queensland body corporates cannot ban short-term rentals via bylaws.

Under the Body Corporate and Community Management Act 1997, owners have the right to let their property however they choose. Body corporates cannot pass bylaws that prevent owners from using their lot for short-term accommodation.

This doesn't mean it's a free-for-all. You can still regulate how short-term rentals operate:

What Queensland body corporates CAN do:

• Require guests to comply with building bylaws (noise, conduct, facilities use)
• Regulate use of common property and visitor parking
• Require owners to provide emergency contact information
• Enforce noise and nuisance bylaws equally against all occupants
• Charge higher insurance premiums to owners who short-term let (where this can be justified)
• Require registration of short-term rental activity with the committee

What they CANNOT do:

• Ban short-term rentals outright
• Create bylaws prohibiting stays under a certain length
• Require committee approval before short-term letting
• Discriminate against short-term rental guests in access to facilities

In practice: Queensland buildings with short-term rental concerns focus on robust conduct bylaws and insurance arrangements. Some committee members watch booking platforms and follow up aggressively on bylaw breaches. It's enforcement-heavy rather than prevention.

New South Wales: Can Restrict (Non-Primary Residence)

Bottom line: NSW body corporates can restrict short-term rentals via bylaws, but only for non-primary residences.

Under the Strata Schemes Management Act 2015, bylaws can prohibit short-term rental accommodation (defined as stays under 90 days) if the lot is not the owner's principal place of residence.

What NSW body corporates CAN do:

• Pass bylaws banning short-term rentals for investment properties
• Allow short-term letting if it's the owner's primary residence (e.g., renting out a room while living there, or renting the whole place for a few weeks while on holiday)
• Require owners to register short-term rental activity
• Set minimum stay periods (e.g., no stays under 30 days)

What they CANNOT do:

• Ban short-term rentals if it's the owner's principal place of residence
• Retrospectively ban existing short-term rental activity (grandfathering applies in some cases)

Voting requirements: A bylaw restricting short-term rentals requires a special resolution (75% of votes at a general meeting). That's a high bar. You need strong owner support to pass it.

In practice: Some Sydney buildings have successfully banned Airbnb for investment properties. Others tried and failed to get the 75% vote. It depends heavily on your ownership mix. Buildings with 70% investors struggle to pass these bylaws (investors obviously oppose them). Buildings with 70% owner-occupiers have better success.

Enforcement challenge: How do you prove whether a property is someone's principal place of residence? It's not always clear. Some owners claim it's their principal residence while actually living elsewhere. Enforcement gets messy.

Victoria: Cannot Ban Outright (But There's a Levy and Three-Strike Rule)

Bottom line: Victorian body corporates cannot ban short-term rentals, but they can regulate them, and the state government has introduced both a levy and a three-strike enforcement system.

Under the Owners Corporations Act 2006, owners have the right to rent their properties short-term. However, significant changes came in 2025:

The 7.5% Levy (Introduced 2025)

Victoria introduced a 7.5% levy on all short-term rental bookings in January 2025. This is collected by platforms like Airbnb and paid to the state government. It doesn't go to your body corporate, but it makes short-term rentals less profitable for owners.

For context: A $200/night Melbourne apartment generates $1,400/week. The 7.5% levy is $105/week, or about $5,460/year if rented short-term continuously. That cuts into investor returns significantly.

The Three-Strike Rule

Victoria also introduced a three-strike enforcement system for short-term rental operators who breach body corporate rules or local regulations:

• Strike 1: Warning and requirement to rectify
• Strike 2: $1,100 fine (indexed annually)
• Strike 3: Short-term rental listing banned for 12 months

This gives body corporates real enforcement teeth. If a short-term rental is causing persistent problems (noise, parties, bylaw breaches), you can now escalate through a formal system that ends in a temporary ban.

What Victorian body corporates CAN do:

• Pass bylaws regulating conduct (noise, guests, parking)
• Use the three-strike system to enforce bylaw compliance
• Require registration of short-term rental activity
• Increase insurance premiums where actuarially justified
• Set rules around use of common property by short-term guests

What they CANNOT do:

• Ban short-term rentals outright
• Require committee approval before an owner can short-term let
• Prevent owners from listing on platforms like Airbnb

Insurance impact: Victorian insurers are charging 15-40% higher premiums for buildings with significant short-term rental activity in 2025-2026. Some buildings are seeing their annual insurance jump from $42,000 to $55,000+. That cost is spread across all owners through higher body corporate fees.

Related: Body Corporate Insurance Explained

In practice: Victorian buildings are using the three-strike system aggressively since its introduction. Some committees monitor Airbnb listings for their building addresses and follow up on every noise complaint or bylaw breach. The 7.5% levy has also reduced short-term rental activity in some areas as profitability declined.

South Australia: Can Create Bylaws Restricting Stays Under 2 Months

Bottom line: SA body corporates can restrict short-term rentals via bylaws, including setting minimum stay periods.

Under the Strata Titles Act 1988 (SA), bylaws can prohibit short-term accommodation or set minimum tenancy periods. Many buildings have bylaws requiring stays of at least 2 months, effectively blocking Airbnb-style short-term rentals.

What SA body corporates CAN do:

• Pass bylaws prohibiting stays under a specified period (commonly 2 months)
• Ban short-term rentals outright via bylaw
• Require approval for any short-term letting arrangements
• Enforce via fines and legal action

What they CANNOT do:

• Retrospectively ban existing arrangements without proper process
• Unreasonably refuse applications if bylaws allow discretionary approval

Voting requirements: Bylaws restricting short-term rentals typically require a special resolution (75% vote). Some SA buildings have passed bylaws requiring unanimous resolution for particularly strict restrictions, though this is rare.

In practice: South Australia has some of the strictest short-term rental restrictions in Australia. Many Adelaide apartment buildings prohibit any stays under 60 days. Enforcement is easier than other states because the bylaws are more clearly defined.

Western Australia, Tasmania, ACT, Northern Territory

Western Australia: Body corporates can pass bylaws restricting short-term rentals. Requires special resolution (75%). Many Perth buildings have implemented minimum 30-day stay requirements.

Tasmania: Can regulate via bylaws, but cannot completely prohibit. Hobart has seen increased body corporate interest in restrictions due to the high number of Airbnb properties.

ACT: Body corporates can restrict via bylaws. Canberra has relatively low short-term rental activity in strata buildings, so this is less commonly debated.

Northern Territory: Can regulate via bylaws. Darwin sees short-term rental activity, particularly in resort-style developments.

How to Pass a Bylaw Restricting Short-Term Rentals

If your state allows restrictions, here's how to actually get it done:

Step 1: Survey Your Owners

Before proposing a bylaw, gauge support. Send out a survey asking:

• Do you currently short-term let your property?
• Do you plan to in the future?
• Do you support restrictions on short-term rentals?
• What concerns do you have (insurance, security, noise)?

You need 75% support to pass a special resolution. If your survey shows you've only got 60% support, don't waste time drafting a bylaw that will fail.

Step 2: Document the Problems

You need evidence to justify the restriction. Build a case file:

• Insurance premium increases (get quotes showing the impact of short-term rentals)
• Security incidents (document complaints, police visits, theft reports)
• Noise complaints (keep records of every complaint, with dates and details)
• Bylaw breaches (track violations by short-term rental guests)
• Facility wear and tear (maintenance logs showing increased costs)

The stronger your evidence, the easier it is to convince wavering owners.

Step 3: Get Legal Advice

Bylaws need to be legally enforceable. Consult a strata lawyer to draft the bylaw properly. Costs are typically $1,500-$3,500 for a lawyer to draft and review a bylaw package.

Your bylaw should:

• Be clearly worded (avoid vague terms like "unreasonable noise")
• Define short-term rental (e.g., "any letting arrangement under 60 days")
• Specify enforcement mechanisms
• Include reasonable exceptions if applicable
• Comply with state legislation

Step 4: Present at AGM or Call an EGM

Put the motion on the agenda for your next Annual General Meeting. Or, if it's urgent, call an Extraordinary General Meeting (EGM).

Notice requirements:

• NSW: 14 days for special resolution
• Victoria: 21 days
• Queensland: 21 days
• SA: 14-21 days depending on scheme

Your notice should include:

• The proposed bylaw wording
• Explanation of why it's needed
• Evidence supporting it (insurance quotes, incident logs)
• How it will be enforced

Step 5: Vote and Register

You need 75% of votes in most states. If it passes, you must register the bylaw with the relevant state authority (Land Titles Office or equivalent). This makes it legally binding.

Timeline: From initial proposal to registered bylaw, expect 3-6 months.

Enforcement: Making Restrictions Actually Work

Passing a bylaw is one thing. Enforcing it is another.

Monitoring Platforms

Some body corporates actively monitor Airbnb, Stayz, and VRBO for their building address. When they find listings, they contact owners reminding them of the bylaw. This is legal, though time-consuming.

Some strata managers offer monitoring services as part of their package. Others use third-party companies that scrape booking platforms and send alerts when new listings appear.

Breach Notices

When a bylaw is breached, the body corporate issues a breach notice to the owner. This formally documents the violation and demands compliance.

Most state legislation allows fines for bylaw breaches:

• NSW: Up to $1,100 per breach (some breaches are per day)
• Victoria: Up to $1,100 (plus the three-strike system for short-term rentals)
• Queensland: Up to 5 penalty units (currently $787 per unit, so up to $3,935)
• SA: Fines vary by bylaw, typically $500-$2,000

Legal Action

For persistent breaches, body corporates can take owners to tribunal or court:

• NSW: NSW Civil and Administrative Tribunal (NCAT)
• Victoria: Victorian Civil and Administrative Tribunal (VCAT)
• Queensland: Queensland Civil and Administrative Tribunal (QCAT)
• SA: South Australian Civil and Administrative Tribunal (SACAT)

Tribunals can order owners to stop short-term letting, impose fines, award compensation to the body corporate for costs, and in extreme cases, order the property to be sold (very rare).

The Problem with Enforcement

Even with clear bylaws, enforcement is difficult. It requires vigilance, documentation, and often legal costs. Some body corporates find it easier to negotiate with problem owners rather than pursue lengthy tribunal proceedings.

Insurance Implications

Short-term rentals affect your building insurance in two ways:

Premium Increases

Buildings with significant short-term rental activity (generally 20%+ of units) face higher premiums. Victorian data shows increases of 15-40%.

Why? Insurers consider short-term rentals higher risk for:

• Theft and property damage claims
• Public liability claims (guest injuries)
• Water damage (guests unfamiliar with the property causing leaks)
• Fire risk (cooking, smoking, unattended appliances)

Policy Exclusions

Some insurers exclude claims related to short-term rental activity unless the building has specific short-term rental cover. Read your policy carefully. If the building doesn't have appropriate coverage and a short-term rental guest causes damage, the claim might be denied.

What you can do:

• Disclose short-term rental activity to your insurer (it's usually required)
• Shop around, some insurers specialize in buildings with short-term rentals
• Consider requiring short-term rental owners to carry additional liability insurance
• Pass premium increases specifically to owners who short-term let (complex but possible via special levies in some states)

The Owner vs Owner-Occupier Divide

This issue splits buildings right down the middle.

Investors say:

• I bought this property as an investment. Short-term rentals generate 30-50% more income than long-term leases.
• Restricting my ability to maximize returns reduces my property value.
• I should be free to use my property as I see fit, as long as I'm not breaking bylaws.
• Owner-occupiers are being selfish and controlling.

Owner-occupiers say:

• I live here. I didn't sign up to live next to a hotel.
• Short-term rentals push up everyone's insurance premiums.
• Security and amenity suffer when you've got constant stranger traffic.
• Investors are prioritizing their returns over our quality of life.

Both sides have legitimate points. The challenge is finding a fair middle ground.

Possible compromises:

• Allow short-term rentals but with strict conduct bylaws and a three-strike enforcement system
• Limit short-term rentals to a percentage of units (e.g., no more than 20% of the building)
• Allow short-term rentals in certain parts of the building only
• Require additional insurance or bonds from short-term rental owners
• Set minimum stay periods (e.g., 7 days minimum, blocking weekend-only bookings)

What to Do If You Want to Short-Term Rent Your Apartment

Step 1: Check Your State Rules

Understand what's legally allowed in your state and whether your body corporate can restrict you.

Step 2: Review Your Building's Bylaws

Get a copy of your registered bylaws. Check whether there are existing restrictions on short-term rentals. If there are, you risk fines and legal action if you proceed.

Step 3: Get Insurance

Standard landlord insurance often doesn't cover short-term rentals. You need specific short-term rental or holiday letting insurance. Airbnb and other platforms offer host protection, but it's limited. Get your own policy.

Step 4: Comply with Local Council Rules

Beyond body corporate bylaws, check your local council regulations. Some councils require registration, limit the number of nights per year, or prohibit short-term rentals in certain zones.

Step 5: Register with Your Body Corporate

Even if not required, inform your strata manager or committee that you're short-term letting. Provide emergency contact details so they can reach you if problems arise.

Step 6: Set Clear House Rules

Give guests specific instructions:

• Building access codes and procedures
• Quiet hours (usually 10pm-7am)
• Rubbish disposal locations
• Parking arrangements
• Pool/gym hours and rules
• No parties or excessive noise

Make it clear that breaching building bylaws can result in eviction without refund.

Step 7: Respond Quickly to Complaints

If the body corporate or neighbors contact you about an issue, respond immediately. Deal with problem guests fast, remove them if necessary. Building goodwill with neighbors and the committee makes your life easier.

What to Do If You Want to Restrict Short-Term Rentals in Your Building

Step 1: Organize Other Owners

Talk to your neighbors. Identify other owners who share your concerns. You need 75% support to pass a bylaw.

Step 2: Collect Evidence

Document problems: noise complaints, security incidents, insurance quotes showing premium increases, and facility maintenance costs.

Step 3: Propose a Motion

Work with your strata manager or committee to draft a motion for the next AGM. Get legal advice on bylaw wording.

Step 4: Campaign for Support

Send a clear, evidence-based explanation to all owners before the meeting. Explain the insurance impact, security concerns, and enforcement plan.

Step 5: Vote

Attend the AGM and vote. Encourage supporters to attend or submit proxies. You need 75% of votes.

Step 6: Enforce Consistently

If the bylaw passes, enforce it fairly and consistently. Monitor platforms, issue breach notices, and follow through with legal action if needed.

The Bottom Line

So, can your body corporate ban Airbnb? It depends where you live:

• Queensland: No, you cannot ban it, but you can regulate conduct
• NSW: Yes, you can restrict it for non-primary residences (75% vote required)
• Victoria: No, but you can regulate it and use the three-strike enforcement system (plus there's a 7.5% state levy)
• South Australia: Yes, you can set minimum stay periods or ban it outright (75% vote required)
• Other states: Generally yes, with a 75% special resolution

Key takeaways:

• Even where bans are allowed, you need 75% owner support, a high bar
• Insurance premiums are the most tangible financial impact (15-40% increases common)
• Enforcement is difficult and requires active monitoring and follow-through
• Compromise solutions (conduct bylaws, minimum stays, registration) often work better than outright bans
• The owner vs owner-occupier divide makes this one of the most contentious body corporate issues

If you're buying an apartment and care about this issue, check the building's bylaws before purchasing. If you're an owner dealing with short-term rental problems, start building your case now, gathering evidence, organizing support, and consulting lawyers.

Related Reading

More on body corporate fees and rules:

• What Are Body Corporate Fees? Complete Guide
• Are My Body Corporate Fees Too High?
• Body Corporate Questions Before Purchasing
• Body Corporate Bylaws Complete Guide

Dealing with disputes:

• How to Deal with Body Corporate Disputes
• Body Corporate Committee Performance

Compare body corporate fees across Australia at BodyCorporateFees.com.

This article is for informational purposes only and should not be considered legal advice. Strata legislation varies by state and changes frequently. Consult a qualified strata lawyer for advice specific to your situation.