As the City of Sydney Council considers banning short-term rentals in 11 inner-city suburbs, a leading Airbnb management expert is urging authorities to enforce existing laws before adding new restrictions. Krystina Cleary, founder of Cleary & Co, contends that the current debate overlooks a critical enforcement gap, with more than 3,000 unregistered short-term rental listings operating outside legal requirements.
Data from the City of Sydney reveals 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. Cleary argues that this compliance gap undermines the entire regulatory system. 'Without registering, you are either impacting short-term letting options or claiming to be exempt, and this should be picked up by the Department of Planning who are supposedly auditing this process,' 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 including Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale, where rental vacancy rates sit below 3 percent. Cleary warns that such bans would harm genuine homeowners who rely on short-term rental income for retirement, medical expenses, or business funding.
Short-term rental listings represent an estimated 0.9 to 1.6 percent of Sydney's total housing stock, according to Cleary, who dismisses the narrative that Airbnb is a primary driver of the housing crisis. 'The Greens have jumped onto this bandwagon in an attempt to gain voters. It is a naive perspective that prime, centrally located real estate should simply be made available to everyone,' she said.
Cleary emphasizes that enforcement of existing registration requirements would be a more practical and equitable approach. NSW law already caps non-hosted short-term rentals in Greater Sydney at 180 days per year, with exemptions for bookings of 21 or more consecutive nights. Hosted properties have no cap. 'It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely,' she added.
For property owners, Cleary advises a personal decision based on individual circumstances. '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,' she said.
Despite regulatory uncertainty, Cleary remains optimistic about the future of short-term rentals. 'What we will see is a true five-star experience for visitors to our city. Unscrupulous hosts, poorly presented properties, and operators trying to cut corners to make a fast dollar only work in the short term,' she said.
As the council continues its investigation, no ban has been implemented. The debate highlights the tension between housing affordability concerns and property rights, with Cleary arguing that enforcing existing laws is the most effective path forward.
