Navigating the Impact of Short-Term Rentals

Short term rentals (STRs) have become increasingly common in strata communities, presenting financial opportunities for property owners but also posing significant challenges to community cohesion, safety, and resident satisfaction. The growing popularity of platforms offering short stay accommodation has triggered urgent calls for clearer regulation and improved management solutions.

“The rapid expansion of short-term rentals is undeniable,” said Joshua Baldwin, President of the Strata Community Association (SCA) Australasia. “However, the reality is that many strata communities are experiencing the negative consequences, including increased property maintenance costs, security concerns, and a noticeable decline in community spirit and stability. Strata schemes urgently need the authority to create tailored rules that reflect their unique circumstances.”

Common complaints from strata residents include increased noise, disturbances from transient guests, damage to shared areas, and significant wear and tear on communal amenities. There have been numerous reports of unauthorised parties and large gatherings leading to substantial property damage, causing distress and financial strain for both owners and residents.

A recent incident in Brisbane involved a short term rental property that was extensively damaged after an unauthorised party, attended by hundreds of teenagers, spiralled out of control.
In another case, a prominent apartment building in the Adelaide CBD was found to have apartments operating as temporary brothels, with fire escape doors propped open to allow customer access from a rear alleyway.

These examples are not isolated. Similar issues have been reported across the country, highlighting the urgent need for effective and enforceable regulation.”

Residents in popular holiday destinations like Byron Bay have also raised concerns about worsening housing shortages, as more properties shift from the long-term rental market to more profitable short-term holiday lets. This trend has significantly reduced the availability of affordable long-term accommodation, making it increasingly difficult for locals to secure stable housing.

Short term rental income can be high risk and high reward for investors, sometimes generating up to 80 percent more than traditional leases. However, this comes at a cost to local communities, reducing opportunities for residents seeking long term housing. This disparity has encouraged many property owners to pivot toward STRs, further constraining an already tight rental market.

While housing affordability is a widely discussed issue, there is still a clear lack of meaningful action to address the impact of short-term rentals. Despite mounting evidence that the growth of STRs is reducing long term rental supply and increasing pressure on tenants, governments have been slow to implement consistent and effective policy responses.

SCA Australasia is actively advocating for legislative reform to empower strata communities with the tools they need to manage STRs effectively. The association is calling for three key measures: • Stronger legal authority for strata schemes to regulate or restrict short-term letting
• Clearer legislative definitions distinguishing between residential and commercial short-term stays
• Balanced regulation that protects community wellbeing without resorting to outright bans

“Our aim is not to eliminate short term rentals entirely,” Baldwin emphasised. “We recognise the benefits they can bring but are calling for a balanced, community first approach. We want practical solutions that enable responsible short-term rentals without compromising residents’ safety, stability, and quality of life.”

Strata owners and committees are encouraged to take a proactive approach by reviewing and updating by laws, involving residents in open discussions, and staying up to date with regulatory changes. This collaborative stance ensures that communities can address the challenges posed by STRs more effectively.

The debate over short term rentals — whether to impose blanket bans or implement robust regulations — remains complex. A total ban may help maintain community stability but could also limit financial opportunities for owners. Conversely, well designed regulations such as mandatory guest registration and minimum stay requirements may offer a more practical and fair solution.

“We are not looking to shut the door on short term rentals,” Baldwin concluded. “Rather, our goal is to ensure that door remains open, but with clear conditions that prioritise the interests and wellbeing of all residents.”

Ultimately, resolving the challenges of short-term rentals will require strong collaboration between residents, property owners, and policymakers. SCA Australasia remains committed to leading this effort, championing reforms that balance financial incentives with the preservation of cohesive and sustainable strata communities.

As urban density increases and housing supply remains under pressure, strata communities are on the frontline of the short-term rental issue. Each property diverted from long term use to short-term letting further tightens the rental market, pushes prices higher, and shuts out potential tenants.

By adopting a firm yet balanced position and supporting it with robust data, SCA Australasia continues to advocate for resident wellbeing while recognising the evolving nature of modern property use. In doing so, it offers a roadmap for other communities facing the same complex challenges.