How to navigate Sydney’s short-term rental rules and regulations in 2025

Thinking about listing your property on Airbnb or Stayz in Sydney? With the rise of short-term rental accommodation (STRA), it’s never been easier to turn your home or investment property into a profitable venture.

However, Sydney’s STRA market comes with strict regulations designed to ensure safety, fairness, and harmony within local communities.

From mandatory registration and fire safety standards to operational limits and zoning rules, there’s a lot to consider. In this guide, we’ll break down everything you need to know, step by step, so you can navigate the rules with confidence and make the most of your short-term rental.

Getting started with STRA

Do I need to register my property?

Yes, registration with the NSW STRA Register is mandatory. This ensures your property complies with state safety standards and the STRA Code of Conduct. Properties such as houses, units, and terraces must register, while movable dwellings like caravans or tents are exempt.

How to register your short-term rental property

Follow these simple steps to get started:

1. Create an account on the NSW Planning Portal
2. Log in using your service NSW credentials or create a new account.
3. Access the NSW Planning Portal
4. Submit property and host details
   • Describe your property: its type (e.g., house, unit), location, and whether it has council approval for STRA.
   • Provide contact details for the host (you or a manager).
   • Confirm that your property meets fire safety standards and complies with the STRA Code of Conduct.
5. Pay the fee and finalise
   • Initial fee: $65 (one-time registration).
   • Annual renewal: $25 to keep your listing active.
6. Display your STRA property ID
7. Once registered, you’ll receive a unique STRA Property ID (e.g., PID-STRA-XXXX). This number must be included in all online listings and ads to show compliance.

Keeping your STRA registration active

Short-term rental registrations in NSW are valid for one year and must be renewed annually. Here's what you need to know:

• Renewal window: Registrations can be renewed starting 45 days before the expiry date.
• Reminders: Hosts will receive email reminders at 45 days, 30 days, and seven days before expiry to help you stay on track.

What happens if you miss renewal?

If your registration isn’t renewed by the expiry date, your property will be placed on hold for three months. During this time, you cannot use the property for STRA, and bookings through online platforms will be blocked.

After 90 days, your property will be de-registered, and you’ll need to complete the registration process again.

Understanding STRA operational limits

Sydney’s short-term rental regulations limit how often properties can be rented out, depending on their type and location.

These regulations aim to balance the benefits of STRA with housing availability and community interests. It's essential to stay informed about local rules, as some councils may have specific restrictions beyond the state-wide framework.

Zoning and planning controls

Before listing your property, it's essential to check local council rules and strata by-laws to ensure compliance.

Local council requirements

In Sydney, local councils may have specific regulations for STRA. These can include fire safety standards, such as the installation of smoke alarms and fire extinguishers, as well as noise management protocols to minimise disturbances to neighbours. It's advisable to contact your local council to confirm any additional requirements.

Strata scheme rules

If your property is part of a strata complex, the Owners Corporation has the authority to regulate STRA activities. As of April 10, 2020, Owners Corporations can adopt by-laws that prohibit non-hosted STRA in lots that are not the host's principal place of residence. This means that if your unit is not your primary home, the Owners Corporation may restrict or ban its use for non-hosted STRA.

Additionally, strata by-laws may impose other restrictions, such as limiting the number of occupants per bedroom to prevent overcrowding. It's crucial to review your strata scheme's by-laws and ensure your STRA plans comply to avoid potential fines or disputes.

Safety standards

All STRA properties in NSW must meet the STRA Fire Safety Standard. Key requirements include:

Smoke alarms

‍Install smoke alarms that comply with Australian Standard AS 3786. These alarms should be located in every corridor or hallway associated with a bedroom, or if there is no corridor or hallway, in an area between the bedrooms and the remainder of the building.

Additionally, smoke alarms must be installed on each storey not containing bedrooms. If multiple alarms are installed, they must be interconnected. Alarms can be powered either from the mains electricity supply or by a non-removable battery with a minimum life expectancy of 10 years.

Heat alarms

If your property has a private garage attached to the dwelling, a heat alarm must be installed in the garage. The heat alarm should be a class type A1 or A2, comply with AS 1603.3, and be interconnected to the smoke alarms in the dwelling.

It can be powered from the mains electricity supply or by a non-removable battery with a minimum life expectancy of 10 years.

Evacuation diagrams

‍Display clear evacuation plans in each bedroom and near the entrance door to the dwelling.

These diagrams must be at least A4 in size, include a 'YOU ARE HERE' indicator, show the location of exits, fire safety equipment, and the evacuation assembly area, and be oriented to the direction of egress.

They should also include the national emergency services number (000) and advise guests to download the Emergency+ app.

Fire equipment

‍For properties in Class 2 buildings (e.g., apartments) and Class 4 parts of buildings, a 2.5 kg ABE portable fire extinguisher and a fire blanket must be installed in an accessible location in the kitchen, in accordance with Sections 3 and 6 of AS 2444, respectively.

Egress doors

In Class 2 and Class 4 buildings, the entrance doorway to the dwelling must be capable of being opened from inside without the use of a key, ensuring easy exit in case of an emergency.

Code of conduct: Know your rights and responsibilities

The STRA Code of Conduct in NSW outlines the obligations of all participants, including hosts, guests, letting agents, and booking platforms. Here's what you need to know:

Host obligations

• Be accessible: You or your representative must be contactable between 8:00 am and 5:00 pm for general issues, and outside these hours for emergencies.
• Provide information to neighbours: Inform the occupants of neighbouring residences, as well as the owners corporation or community association if applicable, that your property is used for STRA. Provide them with your contact details or those of your representative.
• Ensure guest compliance: Take reasonable steps to ensure guests comply with their obligations under the Code, including making them aware of the Code and its requirements.
• Insurance: Maintain appropriate insurance coverage, including liability insurance, to cover potential injuries or damages.

Guest responsibilities

• Act lawfully: Guests must comply with all applicable laws, including the Code of Conduct, criminal laws, planning laws, and any by-laws if the premises are in a strata or community land scheme.
• Respect the property and neighbours: Avoid damaging the property and ensure that noise levels do not disturb neighbours.
• Take responsibility for visitors: Guests are accountable for the behaviour of their visitors and must ensure they also comply with the Code.

Compliance and penalties

• Non-compliance: Breaches of the Code can result in fines of up to $22,000 for individuals and $110,000 for corporations.
• Exclusion register: Serious or repeated breaches may lead to listing on the Exclusion Register, prohibiting participation in STRA activities for up to five years.

Financial considerations

Insurance

Standard home and contents insurance often doesn’t cover STRA activities. When selecting a policy, ensure it includes:

• Public liability coverage: Protection against claims for guest injuries occurring on your property.
• Theft and property damage coverage: Safeguards against damages or theft caused by guests.

Tax obligations

Earnings from STRA are considered taxable income in Australia. It's essential to understand your tax obligations:

• Income tax: Declare all STRA income in your tax return. You can deduct eligible expenses such as maintenance, utilities, and management fees. Ensure accurate record-keeping to substantiate these deductions.
• Goods and services tax (GST): GST is generally not applicable to residential rental income, including STRA, unless your annual turnover exceeds the GST registration threshold of $75,000 and your property is considered commercial (e.g., hotels or motels). In such cases, GST obligations may apply.

Marketing your property

Creating an accurate and appealing online listing is not just essential for attracting guests and maintaining trust—it’s also a legal obligation under NSW regulations.

Legal requirements

To market your short-term rental property legally and responsibly in NSW, you must comply with the following legislation and guidelines:

Fair Trading Act 1987 (NSW)‍

You are prohibited from engaging in misleading or deceptive conduct in trade or commerce. This includes false or exaggerated claims about your property’s features, amenities, or condition. Ensure all marketing materials reflect the property’s actual state.

Australian Consumer Law (ACL)

‍Under the ACL, misleading or deceptive conduct in advertising is prohibited. Any representation made about your property, whether in descriptions, photos, or amenities lists, must be truthful and accurate.

Code of Conduct for the STRA industry‍

The Code requires that your property is provided in a condition consistent with any representations made during marketing. Ensure that photographs and descriptions accurately reflect the space and its amenities.

Platform-specific guidelines

Airbnb:

• Use high-resolution, up-to-date images that accurately represent your property. Avoid using filters or angles that could mislead guests.
• Provide comprehensive and truthful descriptions, highlighting unique aspects of your space while being transparent about any limitations.
• Clearly outline your house rules to set guest expectations, such as policies on smoking, pets, or noise levels.
• Ensure your amenities list is complete and accurate, as guests often use filters to search for specific features.
• Keep your listing title concise (under 32 characters) for optimal display across devices. Use sentence case (capitalising only the first letter of the first word) for better readability.

Vrbo:

• Ensure your property description is precise and original. Avoid copying text from other listings.
• Accurately portray your rental in line with Vrbo’s Marketplace Standards, including truthful representation of amenities and features.
• Select the most accurate advertising region for your property to meet platform requirements.

Tips for compliance and trust

• Transparency: Be upfront about any limitations or conditions, such as noise restrictions or parking availability.
• Maintenance: Ensure the property is well-maintained to match the condition advertised.
• Updates: Regularly review and update your listing to reflect any changes to the property or its amenities.

By adhering to these guidelines and legal requirements, you can market your property effectively, attract guests, and build trust while ensuring compliance with NSW regulations.

Penalties and enforcement

NSW Fair Trading enforces STRA regulations, handling complaints and issuing penalties.

Fines and penalties

• Code of Conduct breaches: Individuals may face fines of up to $22,000, while corporations can incur penalties up to $110,000 for violations‍
• Exclusion register: Serious or repeated breaches can result in being listed on the Exclusion Register, prohibiting participation in STRA activities for up to five year‍
• Fire safety non-compliance: Failing to meet the STRA Fire Safety Standard may lead to fines and enforcement actions by local councils

Resources

Take advantage of these resources to make sure you’re fully informed:

• NSW Planning Portal: STRA Registration and Guidelines
• NSW Fair Trading: Code of Conduct Details
• Industry Associations:
  • ASTRA
  • STAAA

Expert Airbnb management with MadeComfy

Navigating Sydney’s short-term rental regulations might seem overwhelming at first, but by understanding the rules and following the right steps, you can operate a compliant and successful STRA property.

From registration and fire safety to understanding local zoning rules, staying informed is key to avoiding penalties and making the most of your investment.

For property owners looking to simplify the process and optimise their returns, partnering with a professional management service can make all the difference.

At MadeComfy, we provide expert Airbnb management services in Sydney.

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