As the City of Sydney Council considers restricting short-term rentals across 11 inner-city suburbs, a leading Sydney Airbnb management expert is urging policymakers to enforce existing regulations before introducing new bans. Krystina Cleary, founder of Cleary & Co, argues that the current debate overlooks a significant enforcement gap that undermines the entire regulatory framework.
Data from the City of Sydney indicates 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 leaves more than 3,000 listings operating outside legal requirements. Cleary, who has managed Sydney properties since 2017, says this compliance gap represents 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. "Without registering you are either impacting short-term letting options or claiming to be exempt for whatever reason, and this should be picked up by the Department of Planning who are supposedly auditing this process."
The City of Sydney 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 sit below 3 percent. Cleary contends that homeowners who would be affected are not the large-scale investors the policy targets. "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," she explained. "Many are using their property income to fund their businesses, or to cover medical expenses for serious illness. 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."
Cleary also challenged the narrative linking Airbnb to the housing crisis, noting that short-term rental listings represent an estimated 0.9 to 1.6 percent of Sydney's total housing stock. "The Greens have jumped onto this bandwagon in an attempt to gain voters," she said. "It is a naive perspective that prime, centrally located real estate should simply be made available to everyone. It is growth economics 101: centrally located areas become more populated, they change, and they increase in value."
Despite regulatory uncertainty, Cleary remains optimistic about the long-term direction of Sydney's short-term rental market. "Hopefully, and maybe somewhat optimistically, what we will see is a true five-star experience for visitors to our city," she said. "Unscrupulous hosts, poorly presented properties, and operators trying to cut corners to make a fast dollar only work in the short term. 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."
For property owners assessing their options, Cleary advises a personal approach. "It is a personal decision for the homeowner, always. We provide impartial, factual, real advice and we discuss their needs thoroughly from the outset to understand whether this is a feasible and sensible option for them."
Key facts from the debate: The City of Sydney passed a motion on 28 April 2026 directing its CEO to investigate STR restrictions across 11 inner suburbs; 5,454 active STRA listings exist in the City of Sydney LGA, but only 2,468 are officially registered; short-term rental listings represent an estimated 0.9 to 1.6% of Sydney's total housing stock; NSW law caps non-hosted STRs in Greater Sydney at 180 days per year, with hosted properties having no cap; bookings of 21 or more consecutive nights are exempt from the 180-day cap. The investigation is ongoing, and no ban has been implemented.
For more information on Cleary & Co's stance, visit their website.
