The City of Sydney Council is considering a ban on short-term rentals across 11 inner-city suburbs, but a leading Airbnb management expert contends that the real issue is a failure to enforce existing laws, not a need for new restrictions. Krystina Cleary, founder of Cleary & Co, a Sydney-based short-term rental management agency, argues that the debate linking Airbnb to the housing crisis overlooks the enforcement gap that allows thousands of unregistered hosts to operate illegally.
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 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. "It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely."
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 argues that the homeowners affected are not large-scale investors but individuals using their properties to fund retirement, visit family, or 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. "It did not work in Byron Bay, and it will not work in Sydney."
Cleary, whose company manages over 100 properties and holds Airbnb Superhost status, emphasizes that short-term listings represent only 0.9 to 1.6 percent of Sydney's total housing stock. She believes the focus should be on enforcing the existing 180-day cap for non-hosted properties in Greater Sydney and ensuring all hosts register. "The percentage of Sydney's total real estate listed on Airbnb sits somewhere between 0.9 and 1.6 percent," Cleary noted. "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."
Looking ahead, Cleary remains optimistic about the industry's direction. "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." For property owners navigating uncertainty, she advises individualized assessment: "It is a personal decision for the homeowner, always. We provide impartial, factual, real advice."
The investigation into potential restrictions is ongoing, and no ban has been implemented. For more information on Cleary & Co's services, visit their website.
