Short-term letting in Sydney: Regulations and how Houst can maximise your rental revenues



The Insider @ Houst
Last updated on
May 2, 2023

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Short-term letting in Sydney: Regulations and how Houst can maximise your rental revenues

I hope you enjoy reading this blog post.

If you want my team to just manage your Airbnb for you, click here.

Airbnb Management Services by Houst | Short-Term Rental Experts

About Houst

Houst is a leading property management company specialising in short-term and medium-term bookings in eight countries. With over 7 years of experience and managing over 300,000 bookings, we help homeowners make the most of their properties.

Learn More

Short-term lets in Great Sydney offer the best and most affordable accommodations to the tourists. 

The exquisite beaches, iconic landmarks and cultural diversity attracts many tourists round the year. In that case, one can earn a passive income by letting his property for short term rentals. 

If you’re looking to invest in a highly profitable business in property, your residence can be a great source of earning a handsome amount of money every month. All you have to do is list your business on online platforms like Airbnb, StayZ and 

Listing isn’t as easy as it seems to be. Because local laws and proper market research provide immense control and flexibility in terms of compliance. So, you’re required to get familiar with both of them to reduce the legal complications and maximize the profits.

In this blog, we are going to discuss the short-term lets regulations in Sydney. Moreover, we’ll provide you information on how Houst can help you in maximizing your monthly income. So, let’s start!

Table of Contents

Short-Term Letting in Sydney

Short-term lets in Sydney are a great source of passive income for many. According to an Airbnb report, the monthly earnings of more than half of the houses are A$3,816. Certainly, short-term stays in Sydney are money-spinning and you can also benefit from this incentive.

Short-term accommodations refer to the renting out of a furnished room, apartment or a house for a period of less than thirty days. The number of nights and nature of residence may differ in each state and city of Australia, the general definition of short-term rentals applies to all of them. 

Sydney is a vibrant and multicultural cosmopolitan city in Australia with thousands of tourists’ footprints. As a result, starting a short-term rental business in Sydney is a major contribution towards your monthly, ultimately bringing financial stability.

Local laws and regulations regarding short stays affect this business considerably. So, here’s a comprehensive guide on short-term rentals regulations in Sydney. Please, read them thoroughly and then start listing your business impeccably.

How Much Investment Do You Need for Short-Term Rental Accommodations?

Zero!!! Yes, all you need is to dedicate a room in your own residency as a short-term let and list it on online rental websites. Similarly, you can also rent out your space as non-hosted residencies without any further investment.

Nevertheless, abiding by the local laws and regulations is the primary requirement for starting a rental business in Sydney. You need to get familiarity with New South Wales regulations, fire safety standards and code of conduct. Because any violation or offence will cause you to pay heavy fines and penalties.

Short-term Rental Regulations in Sydney

The regulations surrounding the short-term lets are significant because they ensure the safety of property, guests and the host. Moreover, sound regulations ensure that the neighbourhood and community is not affected by this letting business. Here are some of the most significant short-term accommodation regulations in Sydney:

Council Approval

Registration of short-term rental accommodation is not mandatory for the properties, in case these properties fall under the criteria of exempt developments. Otherwise, a consent is required from the Council for making changes to your land for short-term rentals. The registration fee is $65 in Sydney with an annual renewal fee of $25.

Hosted Short-Term Rentals

For hosted STRA, there’s no limit on the number of days a guest can live in a place. If the host is living himself in a granny’s flat, he can rent out his place as a short-term rental accommodation throughout the year.

Non-Hosted Short-Term Rental Accommodations

Non-hosted short-term rentals are referred to as the presence of the host at the place being rented out for short-term lets. Besides, concierge apartments with onsite managers are also termed as non-hosted short-term rentals in Sydney.

For non-hosted STRA, there’s a 180 days cap on the number of days a guest can live in a place. Local council maintains a register for counting the annual days. In case, the number of days exceeds the cap of 180 days, the short-term rental will no longer be permitted in that year.

The 180-day’s cap excludes the booking of a place for consecutive 21 days. On the other hand, the limit on the days is applicable in certain council areas in New South Wales. For example, Greater Sydney region excluding the Central Coast, Ballina area, Byron area, certain land in the Clarence Valley area and, certain land in the Muswell brook area.

Holiday Rental Insurance: 

According to different listing platforms, the insurance of the property is a prerequisite. Short-term rental insurance must be compatible with the policies provided by the online platform on which you have listed your property.

Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Sydney team to uncover your property’s revenue potential.

Fire Safety Standards for Short-term Lets

In New South Wales or Sydney, the fire safety standards have been set by the Environmental Planning and Assessment (Development Certification and Fire Safety) Regulation 2021. These standards must meet the criteria as described in fire safety standards to ensure compliance.

A sole residence attached or detached in a row of houses: Smoke and heat alarms, evacuation diagrams are required to be properly installed. These alarms must be functional to ensure the safety of guests, community and property. The evacuation diagrams must be available at the residence.

Apartment Buildings or Sole Dwelling: Smoke and heat alarms, egress doors, portable fire extinguishers, fire blankets, Evacuation Diagrams. The host must ensure that smoke and heat alarms and portable fire extinguishers are working properly to avoid any possible loss.

Code of Conduct

There are many codes of conducts prescribed in the Code of Conduct NSW Fair Trading, Department of Customer Service. The hosts, guests, neighbours and letting agent

  1. Avoiding misrepresenting identity
  2. Booking platforms must comply with this code of conduct
  3. The property is registered for short-term rental accommodations with a proper property ID, booking ID and request type
  4. A letting agent cannot advertise or let if the name of the host or property is found recorded in the exclusion register.
  5. A host must be present at the check in and check out times. He is also required to hold insurance to cover third party injury or death on short-term rental premises. This insurance will be valid only for the occupancy period.
  6. Host is also required to provide information and necessary guidelines on property and rules.
  7. Guests are required to act according to the community law. Avoid causing noise and violence at the premises. Any damage to the property will be considered an offence and he will be charged with a penalty.

Penalties for Violation of Code of Conduct

Now, hosts are listed as an exclusion register if they violate the short-term rental accommodations rules and regulations. Similarly, bad guests can also be inquired about their behaviour and a penalty will be charged if the offence approves.

  1. A penalty of up to $22,000 will be charged under code of conduct if a host is found breaching any of the regulations, according to the Stacks Law Firm
  2. For violation of fire safety standards, the host will pay a fine of $500 from the week of inspection. Surprisingly, this penalty will continue to increase if fire safety measures have not been improved. The breach can lead to a payment of up to $2,000, according to the Amendments to the Environmental Planning and Assessment Regulation 2000 

How Does Houst Maximise Your Rental Revenues?

Houst is one of the leading and top-notch property management service providers in Australia. You can hire the services of this management team to accomplish your goal of maximising your returns on your investment. 

As a host, sometimes, it becomes difficult to reply to the guests and facilitate them at the premise. Other times, you may not be familiar with the local laws and regulations. In those cases, you need someone who can act as a host and manage all the duties you’re supposed to offer at your short-term rental premises. Houst comes to assist you in these circumstances. So, you don’t need to shutdown your rental business. 

Here are some of the best services Houst can offer you:

  1. Your Guests are Always Hosted Well

Houst offers excellent and professional hosting services in Sydney. The skilled and amicable hosts at Houst ensure the guests receive instant replies and service. They’re properly instructed about the premises and local regulations. Moreover, their check in and check out time is properly managed. 

If your guests are getting the best hosting services, the nice reviews on your rental profile will definitely boost your income by bringing in more credibility and the revenues. So, Houst performs exceptional hosting services in Sydney for you.

  1. Listing of Short-term Lets

Short-term lets in Sydney demand listing on multiple platforms for gaining the maximum revenues. Listing on different online platforms becomes difficult when the policies of each platform are not the same. Your business may not get approval as a result. In that case, the listing of your short-term letting building becomes smoother on these platforms. 

The dedicated team at Houst is best knowledgeable about all the hosting policies and regulations. Moreover, they ensure the letting premises meet the requirements of the local laws. So, your profile is built properly and accurately at Airbnb, StayZ, and other such hosting places.

  1. Keep Track of Your Letting Business

Keep track of your letting business by using the organised and interactive Houst dashboards. These dashboards offer key insights and tools for tracking the performance of your business. You can easily view the guests, revenues and reviews at just one place.

  1. Maintenance of Rental Property

Proper cleanliness and maintenance of short-term lets is mandatory by law. If any violation occurs, intentionally or deliberately, dire consequences will arise. For example, your name is likely to appear in the exclusion register.

To avoid these unpleasant events, you can hire the services of the Houst for ensuring the proper cleaning and maintenance of the lets. The code of conduct to maintain a proper record of the premise by taking photos of the premise before the guest arrives and after he leaves. Houst can offer you accurate record keeping services on cleaning and maintenance.

Final Thoughts

Finally, the local regulations allow the start of a profitable letting business in Sydney. A proper registration, abiding by the code of conduct and fire safety standards can provide you a safe way to sail through your passive income journey. 

Although the regulations slightly differ for hosted and non-hosted hosts, you can rent out your premises as short-term accommodations smoothly after reading this blog. Rental markets in Sydney are booming and you can also participate in this successful business by simply getting the high-class services in Sydney. With zero investment, you can start earning thousands of dollars in a month only. Boost this income and achieve credibility as a nice host with the Houst.

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

I hope you enjoy reading this blog post!
If you want my team to just manage your Airbnb for you, just book a call.
Book a call
Click here to Get More Bookings!
See How Houst Can Elevate Your Airbnb’s Visibility
  • Listing Optimisation – Maximise your listing’s potential. Experience tangible growth.
  • Professional Photography – Captivating visuals that instantly attract guests.
  • Guest Screening – Ensuring only the best and safest guests for your property.

We hope you enjoy our blog!

If you would like to find out more about how our team can help you get the most of your Airbnb, just book a call with us.

Thank you for providing your contact information!
Oops! Something went wrong while submitting the form.