Sydney, Australia – As the City of Sydney Council considers banning short-term rentals in 11 inner-city suburbs, Krystina Cleary, founder of Cleary & Co, a leading short-term rental management agency, is pushing back against what she calls a politically motivated narrative. She argues that the focus should be on enforcing existing laws rather than implementing new restrictions that unfairly penalize homeowners operating within the rules.
Data from the City of Sydney reveals that out of 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 over 3,000 listings operating outside legal requirements. Cleary emphasizes that this enforcement gap undermines the entire regulatory system. “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 council’s motion, passed on 28 April 2026, directs an investigation into 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%. However, Cleary points out that short-term rental listings represent only an estimated 0.9 to 1.6% of Sydney’s total housing stock, according to the source content. She argues that blaming Airbnb for the housing crisis is a distraction from more significant factors.
Cleary highlights the diverse circumstances of homeowners who rely on short-term rental income. “Our clients are using their asset to fund their retirement, to visit their kids and grandkids, or to cover 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 notes that similar bans in Byron Bay have not resolved housing issues, suggesting that Sydney would face similar challenges.
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 added.
For property owners navigating the uncertainty, Cleary advises a personal assessment. “We provide impartial, factual advice and discuss their needs thoroughly to understand whether this is a feasible option for them,” she said. The investigation is ongoing, and no ban has been implemented yet. For more details, visit the company’s website at https://www.clearyandco.com.au.
