Published: 09 Sep 2026
Short-term letting through platforms such as Airbnb has become increasingly common, but it can also present practical challenges within Sectional Title schemes.
Trustees and owners often ask:
Trustees and owners often ask:
Can an owner use their unit as an Airbnb? Can the Body Corporate prohibit short-term letting? And what happens when short-term guests cause noise, security or parking problems?
The answer is not as simple as saying that Airbnb is either permitted or prohibited.
The Sectional Titles Schemes Management Act (STSMA) does not expressly prohibit short-term letting, and neither the STSMA nor the prescribed rules provide a specific definition of what constitutes “short-term letting”. Owners generally have the right to let their units and derive an income from their investment.
The important question for a Body Corporate is therefore not simply whether a unit is being let on a short-term basis, but whether the letting is resulting in breaches of the scheme's rules, causing a nuisance or creating legitimate concerns for other residents.
The Sectional Titles Schemes Management Act (STSMA) does not expressly prohibit short-term letting, and neither the STSMA nor the prescribed rules provide a specific definition of what constitutes “short-term letting”. Owners generally have the right to let their units and derive an income from their investment.
The important question for a Body Corporate is therefore not simply whether a unit is being let on a short-term basis, but whether the letting is resulting in breaches of the scheme's rules, causing a nuisance or creating legitimate concerns for other residents.
Owners have responsibilities too
The fact that an owner is entitled to let their unit does not mean that the owner is free from responsibility for what happens during the letting.
Owners who let their units should:
This is particularly important in a short-term letting environment, where guests may have little knowledge of the scheme, its residents or its rules.
An owner cannot simply argue that a particular guest was responsible for a disturbance and therefore the owner has no responsibility. The owner's obligations in relation to the people occupying their section remain relevant.
Owners who let their units should:
- Notify the Body Corporate when their unit is let;
- Ensure that tenants, guests and other occupiers comply with the scheme's conduct rules;
- Provide tenants with a copy of the scheme's conduct rules, as required by the applicable legislation; and
- Take responsibility for ensuring that their tenants and guests comply with the rules.
This is particularly important in a short-term letting environment, where guests may have little knowledge of the scheme, its residents or its rules.
An owner cannot simply argue that a particular guest was responsible for a disturbance and therefore the owner has no responsibility. The owner's obligations in relation to the people occupying their section remain relevant.
The Body Corporate can regulate conduct
A Body Corporate has a responsibility to enforce the scheme's rules fairly and consistently. At the same time, the rules must be reasonable and apply equally to owners.
Rather than attempting to prohibit short-term letting simply because it is short-term letting, a Body Corporate should consider whether there are specific problems that need to be addressed through reasonable rules.
Depending on the circumstances of the scheme, these may include rules dealing with:
This allows the scheme to address the actual problems associated with short-term occupation without automatically treating every short-term letting arrangement as a problem.
Rather than attempting to prohibit short-term letting simply because it is short-term letting, a Body Corporate should consider whether there are specific problems that need to be addressed through reasonable rules.
Depending on the circumstances of the scheme, these may include rules dealing with:
- Access control and security;
- Registration or notification of occupants;
- Noise and nuisance;
- Parking;
- Use of common property; and
- The safety and security of residents.
This allows the scheme to address the actual problems associated with short-term occupation without automatically treating every short-term letting arrangement as a problem.
Can a Body Corporate restrict or prohibit short-term letting?
Yes, a Sectional Title scheme may, in appropriate circumstances, adopt rules restricting short-term letting.
However, Trustees cannot simply decide to ban an Airbnb. Any restriction must be properly adopted in accordance with the STSMA and the prescribed procedures, must be reasonable and must apply equally to owners. The amended rule must also be submitted to CSOS for approval.
The courts have recognised that properly adopted restrictions on short-term letting can be enforceable.
In Body Corporate of The Paddock Sectional Title Scheme No 249-1984 v Nicholl, the High Court upheld a rule prohibiting the letting of a unit for periods of less than six months and ordered the owner to cease the short-term letting. This demonstrates that a restriction on short-term letting is not necessarily invalid simply because it limits an owner's ability to let their unit for short periods. However, a rule that may be reasonable in one scheme may not necessarily be reasonable in another. What is reasonable will depend on the particular scheme, the rule adopted and the circumstances surrounding it.
However, Trustees cannot simply decide to ban an Airbnb. Any restriction must be properly adopted in accordance with the STSMA and the prescribed procedures, must be reasonable and must apply equally to owners. The amended rule must also be submitted to CSOS for approval.
The courts have recognised that properly adopted restrictions on short-term letting can be enforceable.
In Body Corporate of The Paddock Sectional Title Scheme No 249-1984 v Nicholl, the High Court upheld a rule prohibiting the letting of a unit for periods of less than six months and ordered the owner to cease the short-term letting. This demonstrates that a restriction on short-term letting is not necessarily invalid simply because it limits an owner's ability to let their unit for short periods. However, a rule that may be reasonable in one scheme may not necessarily be reasonable in another. What is reasonable will depend on the particular scheme, the rule adopted and the circumstances surrounding it.
What happens when Airbnb occupants break the rules?
This is where properly drafted conduct and penalty rules become important.
Where a valid penalty provision exists in the scheme's rules, the Body Corporate may, subject to the applicable requirements and procedures, impose a penalty for a breach of the rules.
The penalty should relate to the actual breach of the rule, rather than simply to the fact that the owner is using the unit for short-term letting.
Examples may include:
Where a valid penalty provision exists in the scheme's rules, the Body Corporate may, subject to the applicable requirements and procedures, impose a penalty for a breach of the rules.
The penalty should relate to the actual breach of the rule, rather than simply to the fact that the owner is using the unit for short-term letting.
Examples may include:
- Excessive noise;
- Nuisance behaviour;
- Parking violations;
- Security breaches;
- Damage to common property; or
- Other breaches of the scheme's conduct rules.
What if different Airbnb occupants repeatedly breach the same rule?
The fact that different occupants are involved does not necessarily mean that the owner cannot be held responsible for repeated breaches.
The STSMA and prescribed rules place responsibility on the owner to ensure that persons occupying their section comply with the scheme's rules. This includes tenants, occupants, guests and visitors. The owner's responsibility therefore does not necessarily change simply because the identity of the occupant changes.
For example, if one short-term occupant breaches the noise rule and, on a later occasion, another occupant breaches the same rule, the owner may still be held responsible for the repeated breaches arising from the occupation of their section.
The Body Corporate must, however, follow the required due process before imposing a penalty. The owner must be given an opportunity to respond, and the penalty must be authorised by the scheme's rules.
The STSMA and prescribed rules place responsibility on the owner to ensure that persons occupying their section comply with the scheme's rules. This includes tenants, occupants, guests and visitors. The owner's responsibility therefore does not necessarily change simply because the identity of the occupant changes.
For example, if one short-term occupant breaches the noise rule and, on a later occasion, another occupant breaches the same rule, the owner may still be held responsible for the repeated breaches arising from the occupation of their section.
The Body Corporate must, however, follow the required due process before imposing a penalty. The owner must be given an opportunity to respond, and the penalty must be authorised by the scheme's rules.
What should Trustees consider when restricting short-term letting?
Where a scheme is considering introducing a minimum rental period or another restriction on short-term letting, Trustees should consider the circumstances of the particular development.
Factors may include:
The important point is that a restriction should address a genuine concern and be appropriate to the particular scheme.
Factors may include:
- The location of the scheme;
- Whether the scheme is intended or marketed for holiday accommodation;
- Its proximity to hospitals, theatres or business districts, where short-term accommodation may reasonably be expected;
- The extent to which short-term letting is taking place within the scheme;
- The actual impact of short-term letting on other owners and occupiers; and
- Whether the restriction is necessary and reasonable to protect the interests of the community as a whole.
The important point is that a restriction should address a genuine concern and be appropriate to the particular scheme.
Finding the right balance
Short-term letting can present legitimate challenges for sectional title communities, particularly where there are concerns about security, noise, parking, nuisance or the use of common property.
At the same time, owners have proprietary rights in their sections, including the right to let their property, subject to the applicable legislation and the scheme's rules.
The better approach is therefore to focus on the actual problems being experienced and how they can reasonably be managed.
Clear conduct rules, appropriate access and security procedures, responsible owners and consistent enforcement can go a long way towards protecting the interests of both permanent residents and owners who choose to let their units.
At the same time, owners have proprietary rights in their sections, including the right to let their property, subject to the applicable legislation and the scheme's rules.
The better approach is therefore to focus on the actual problems being experienced and how they can reasonably be managed.
Clear conduct rules, appropriate access and security procedures, responsible owners and consistent enforcement can go a long way towards protecting the interests of both permanent residents and owners who choose to let their units.
The bottom line
- Short-term letting is not automatically prohibited by the STSMA.
- Owners generally have the right to let their units, subject to the applicable legislation and the scheme's valid rules.
- Owners remain responsible for ensuring that their tenants, occupants, guests and visitors comply with the scheme's rules.
- A Body Corporate may regulate short-term letting through reasonable, properly adopted rules.
- A restriction on short-term letting is not automatically invalid simply because it limits an owner's ability to let their unit for short periods.
- Where the rules provide for penalties, the required due process must be followed. A penalty should relate to an identifiable breach of a rule, rather than simply to the fact that a unit is being used for short-term letting.
- The fact that different occupants are involved does not necessarily mean that the owner's responsibility for repeated breaches is reset. The owner remains responsible for ensuring compliance by the occupants of their section.
A practical message for Trustees
- Before attempting to ban Airbnb or introduce a minimum rental period, Trustees should first ask: What problem are we actually trying to solve?
- If the problem is noise, deal with noise.
- If the problem is unauthorised access, deal with access and security.
- If the problem is parking, enforce the parking rules.
- If the problem is damage to common property, deal with the damage.
- If the problem is repeated nuisance caused by short-term occupants, consider whether the existing rules adequately address the problem and whether additional, reasonable rules are required.
And before imposing a penalty, ask:
What rule has been breached, does the rule authorise a penalty, and have we followed the correct due process?
A well-drafted set of rules that addresses the actual conduct causing concern may be considerably more effective — and more defensible — than an informal or blanket attempt to prohibit short-term letting.
Important note This article is intended for general information only and should not be regarded as legal advice. The position will depend on the circumstances and the rules applicable to each Sectional Title scheme.
Important note This article is intended for general information only and should not be regarded as legal advice. The position will depend on the circumstances and the rules applicable to each Sectional Title scheme.
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