As the City of Sydney Council considers banning short-term rentals in 11 inner-city suburbs, Krystina Cleary, founder of Cleary & Co, a Sydney-based Airbnb management firm, is challenging the narrative that links Airbnb to the housing crisis. She argues that the focus should be on enforcing existing laws rather than penalizing compliant homeowners.
Data from the City of Sydney shows that of the 5,454 active short-term rental listings in the local government area, only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework. This leaves more than 3,000 listings operating outside legal requirements. Cleary emphasizes that this compliance gap undermines the entire regulatory structure. 'It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely,' she said.
The City of Sydney motion, passed on 28 April 2026, directs the CEO to investigate restricting non-primary-residence short-term rentals in suburbs such as Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale, where rental vacancy rates are below 3 percent. Less than 2% of Sydney's housing stock is listed on Airbnb, according to Cleary, who notes that the real problem is unregistered hosts.
Cleary argues that homeowners affected by potential bans are not large-scale investors but individuals using their properties for retirement, family visits, business funding, 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 and which is capped in terms of income,' she said. She points to Byron Bay as an example where similar bans did not work.
Despite regulatory uncertainty, Cleary remains optimistic about the future of short-term rentals in Sydney. She envisions a market focused on quality, where poorly presented properties and unscrupulous hosts 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, with impartial advice from her firm.
The investigation is ongoing, and no ban has been implemented. For more information, visit Cleary & Co.
