A Strata Short Term Accommodation Study List
or, to be or not to be AirBNB …
A Quick Read
For many people, the idea of listing a spare room on AirBNB [or similar platforms] or renting one for a long weekend sounds refreshingly simple: a frictionless digital handshake that turns idle space into income or experience. But inside strata buildings, that ‘simple’ transaction is embedded in a mess of competing rights, obligations and externalities, showing how economic opportunity, housing affordability, resident cohesion and owner autonomy pull in different directions, and why reducing the debate to ‘pro’ or ‘anti AirBNB does everyone a disservice.
So, before deciding and acting on short term strata accommodation issues, why not research, read and consider the issues with this Australian study list?
[a 11:00 minute read, with 2164 words]
The Full Article
The short term letting of strata apartments has been widely criticised by most of the strata sector since [let’s be honest] AirBNB began operating in Australia in the early 2010s.
But, the varying intersecting interests in short term letting and AirBNB in strata buildings are far more complex and nuanced than those criticisms for a few reasons.
At the heart of every strata apartment building lies a delicate equilibrium between private living interests and collective wellbeing. Strata owners and residents prize stability, predictable neighbours, well kept common areas, and a sense of ‘home’ that extends beyond their front door. They invest not only in bricks and mortar but in community norms that safeguard quiet enjoyment and long term capital growth. So, short term letting can unsettle that equilibrium. A revolving door of transient guests introduces uncertainty over security, noise, and wear‑and‑tear, forcing strata owners to grapple with risks they never intentionally bought into.
On the other hand, investor strata owners and, increasingly, entrepreneurial strata renters, see their strata apartments as income producing assets in a software platform economy that rewards agility. AirBNB’s global marketplace [and others] promises yields that often eclipse traditional medium and long term rents, especially in tourist heavy neighbourhoods. That asymmetry fuels pressure to convert ‘live‑in’ space into ‘stay‑in’ space, pushing building rules, planning schemes, and mortgage covenants to their interpretive limits. When profit motives scale faster than regulatory adaptation, conflicts move from strata meetings to courtrooms and local council chambers.
These dynamics neatly illustrate the tragedy of the commons, where individual hosts internalise the upside of each booking [like higher nightly revenue] while externalising incremental costs, such as elevator congestion, increased security call outs, corridor wear and tear or higher insurance premiums. As more strata owners chase premium returns, the shared strata building environment degrades, eroding strata resident satisfaction and, paradoxically, the very ambience that makes the strata building desirable to guests in the first place. Without effective governance, the strata commons [the corridors, lobbies, goodwill] can be overconsumed to the point of collective loss.
Whilst the counter argument is anchored in the maximum utilisation of assets theorem, where idle capacity is waste, and digital software platforms excel at matching surplus space with unmet demand. High density strata apartments, by design, concentrate scarce urban land and allowing flexible use in ways arguably extracts the highest social and economic value from each square metre. But, tension arises because ‘maximum utilisation’ is conceptually neutral about who benefits and how costs are shared. Balancing private living interests with investor profit motives therefore hinges on sophisticated rule making: by strata buildings, municipalities, and state governments that can harness software platform efficiencies without hollowing out liveability.
Getting that balance of interests, rights, entitlements, benefits, opportunities and resources right is anything but simple, and oversimplification risks turning every strata hallway, rooftop or carpark into a battleground over whose vision of ‘strata homes’ prevails.
RESEARCH, STUDY & CONSIDER … BEFORE DECIDING & ACTING
I’ve seen many [or most] strata stakeholders decide from the outset that short term and AirBNB rentals are detrimental to strata buildings’ best interests, are bad and should be prohibited without ever considering the nuanced balance of legitimate but competing interests that I’ve explained above.
And, that’s despite a lot of research, thinking, analysis and writing about these issues and a series of Court and Tribunal decisions that explore those issues.
So, I fear that the decisions that have and are being made about short term and AirBNB rental in strata buildings and the actions that are taken based on them are ‘arse about’ and perfect examples ignorant decision making when, instead, strata stakeholders should have researched the issues, studied what’s been written and considered those things first.
So, whether it’s too late or not [I don’t think it is], here’s an Australian strata short term accommodation study list.
It may change [or not] your thinking.
THE STUDY LIST
Below is a thematically grouped study list of Australian materials and cases on AirBNB and other short term rental [STR] platforms in strata apartment buildings including the year, authors, title, a summary of the angle and links [where they are available] to web sources.
1. PEER REVIEWED & SCHOLARLY WORK
Short‑Term Accommodations and Long‑Term Housing Challenges in the Margaret River Tourist Destination
Farid et al, 2024
[Latest regional evidence that STR density can lift rents and crowd out long‑term tenancies]
https://www.mdpi.com/2076-0760/13/7/355
Airbnb and Amenity: Is Short‑Term Letting Reshaping How We Live in the City?
Crommelin, Parkinson, Martin & Troy, 2021
[Qualitative study of noise, security and elevator‑queue “amenity shocks” inside high‑rise strata buildings]
Is Airbnb a Sharing Economy Superstar? Evidence from Five Global Cities
Crommelin Laura: Troy, Laurence; Martin, Chris; Pettit, Chris, 2020
[Multi city based review of in practice experiences]
Beware the Double‑Edged Sword: When Private Regulation (By‑laws) Seeks to Limit Freehold Land Rights
Pocock, Melissa, 2019
[Analyses how far strata by‑laws may go in banning STR before courts step in]
Regulating Airbnb and Short‑Term Letting: An International Review
Martin, 2019
[Benchmarks Australia against New York, Barcelona, Tokyo & others, incl handy for reform ideas]
Who wins and who loses when platforms like Airbnb disrupt housing? And how do you regulate it?
Crommelin, Laura; Martin, Chris: Troy, Laurence: Parkinson S, Nov 2018
[A study of the benefits and problems of short term accommodation and software platforms]
Airbnb regulation needs to distinguish between sharing and plain old commercial letting private housing markets: the case of Airbnb
Crommelin, Laura; Martin, Chris: Troy, Laurence, Jun 2018
[High level discussion of property use issues for short term accomodation]
https://unsworks.unsw.edu.au/handle/1959.4/unsworks_78808
Up in the Air(bnb): Can Short‑Term Rentals Be Tamed
Schatz & Leshinsky, 2018
[Early doctrinal review of NSW/Vic planning and strata cases post‑Estens]
https://www.tandfonline.com/doi/abs/10.1080/08111146.2018.1429260
AHURI Final Report 305 – Technological Disruption in Private Housing Markets: the Case of Airbnb
Crommelin et al, 2018
[Big‑data mapping of listings in Sydney & Melbourne plus policy scenarios (caps, levies, bans)] AHURI
Paying the Price: AirBNB in Strata
Owners Corporation Network, 2018
[OCN’s views on the problems for strata buildings arising from short term accommodations]
Airbnb’s under Fire in Estens v Owners Corporation SP 11825
Sally Kim, 2018
[An analysis of the decision’s impact on AriBNB]
Strata Schemes and Short-term Lettings (Again)
Edgeworth, Brendan, 2018
[An update on his earlier articles on short term accommodation in strata buildings]
Is Airbnb a Sharing‑Economy Superstar? Evidence from Five Global Cities
Crommelin et al, 2018
[Shows inner‑city apartment precincts take the brunt of entire‑dwelling listings]
Home‑Sharing, Airbnb and the Role of the Law in a New Market Paradigm”
Parker, 2017
[Frames Airbnb as a test case for private‑property theory—good for conceptual background]
Home‑Sharing in South Australia: Protecting the Rights of Hosts, Guests and Neighbours
Lazar, 2017
[South‑Australian twist on nuisance & planning powers inside community‑title schemes]
2. POLICY, GOVERNMENT & ADVOCACY PAPERS
Managing a Holiday Home? You Must Hold a Licence
REIQ, 2024
[Alerts on Queensland’s mandatory real‑estate licence if you manage STR for other owners]
Real Estate Institute of Queensland
Managing Disruptive Behaviours in Short‑Term Letting
Commissioner for BCCM, 2024
[Practical enforcement tips for QLD bodies‑corporate (by‑law notices, signage, complaint flow] stratacare.com.au
Our Strata Our Choice Campaign Pack
Owners Corporation Network, 2020
[Grass‑roots push to let NSW schemes vote to ban STR via special resolution]
Owners Corporation NetworkInformit
Submission to the NSW Government’s Short-term Holiday Letting Options Paper
Owners Corporation Network, 2019
[OCN’s objections and suggestions to the NSW Government]
Short Term Rental Accommodation Planning Framework : Explanation of Intended Effect
NSW Govt, 2018
Sets up the 180‑night cap, mandatory Code of Conduct and strata veto power under s 137A
[Discussion and policy outlines for the NSW Government reforms]
https://www.planning.nsw.gov.au/policy-and-legislation/housing/short-term-rental-accommodation
Owners Corporations Amendment (Short‑Stay Accommodation) Bill – Government Response
Vic Parliament, 2018
[Discussion and policy outlines for the VOC Government reforms introducing a civil penalty regime for unruly guests in apartment towers]
How Disruptive Technology is Impacting the Housing and Property Markets: An Examination of Airbnb
Pettit,Chris: Ticzon, Carmela: Reades, Jon: Wentz, Elizabeth A: Ong, Pristine: Martin, Chris: Troy, Laurence: Crommelin, Laura, 2018
[Intellectual review of technology impacts and opportunities that have affected short term accommodation]
Options Paper on Short‑Term Holiday Letting
NSW Dept of Planning & Environment, 2017
[First major public‑consultation document; includes strata by‑law models]
https://lgnsw.org.au/common/Uploaded%20files/Submissions/Draft_on_Short_Term_Holiday_Letting.pdf
Government Property Law Review Options Paper Recommendations Body Corporate Governance Issues: By-laws, Debt Recovery and Scheme Termination
Commercial and Property Law Research Centre, 2017
[Wider paper on QLD strata law reforms that include short term and holiday accommodation issues]
Legislative Assembly of Parliament of New South Wales, n 4; New South Wales Government, Response to the Final Report of the Parliamentary Inquiry into the Adequacy of Regulation of Short Term Holiday Letting (2017)
Committee for Environment and Planning, 2017
[NSW Government policy position report]
https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-details.aspx?pk=1956
Response to the Environment and Planning Committee’s Inquiry into the Owners Corporations Amendment (Short-stay Accommodation) Bill 2016
Victorian Government, Nov 2017
[VIC Government policy position report]
Options Paper on Short-term Holiday
NSW Dept of Planning & Environment, Jun 2017
[Discussion paper explaining key options and impacts of short term holiday accommodation]
https://apo.org.au/node/100376
Submission No 1 to Environment and Planning Committee, Victorian Government
Cathy Sherry, Dec 2016
[Property law academic’s submission]
Adequacy of the Regulation of Short Term Holiday Letting in New South Wales
NSW Parliament Committee, Oct 2016
[Report of committee enquiry on the impacts, good and bad, of short term holiday accommodation regulation]
3. INDUSTRY, LEGAL PRACTICE & MEDIA COMMENTARY
Managing Disruptive Behaviours
Stratacare (quoting Comm. BCCM), 2024
[Step‑by‑step communications kit for committees: template signs, welcome letters, fine schedule]
Coverage of Victoria’s 7.5 % ‘Airbnb levy’
The Guardian, Aug 2024
[Explains how the levy dovetails with strata buildings’ new ban powers]
Capital Alliance developer ban
Herald Sun / Urban Developer, 2018
First Australian example of a covenanted “no‑Airbnb” apartment tower—useful precedent for developers’ sales contracts.
Realestate.com.auThe Urban Developer
Developer Capital Alliance Bans Short‑Stay Letting …
Worrall, A, 2018
[Journalistic deep‑dive into the above covenant strategy]
https://www.theurbandeveloper.com/articles/capital-alliance-anti-airbnb-safeguards
Strata Schemes and Short‑Term Lettings (Again)
Edgeworth, B, 2018
[Tracks the evolution of commons‑property arguments post‑Estens]
NSW Toughens Laws on Short‑Term Holiday Letting”
Legalwise Seminars Blog, 2018
[Plain English wrap of the 2018 legislative package, including strata veto]
Technological disruption in private housing markets: the case of Airbnb
AHURI, Oct 2018
[A pro short term accommodation paper focusing on technology and disruption issues]
https://www.ahuri.edu.au/research/final-reports/305
Home Sharing, AirBNB and the Role of the Law in a New Market Paradigm
Parker, David, 2018
[Insights into short term accommodation models from a property, rather than a legal, perspective and argues that the law should evolve]
https://ojs.unisa.edu.au/index.php/uslr/article/view/1495
Home Sharing in South Australia: Protecting the Rights of Hosts, Guests and Neighbours
Lazar, Alex, 2018
[Considers whether SA laws adequately protect the rights of hosts, guests and neighbours]
https://ojs.unisa.edu.au/index.php/uslr/article/view/1494
Economic Effects of Airbnb in Australia
O’Mahoney, John Deloitte Access Economics, 2017
[Frequently cited benefit study; as a useful foil when drafting submissions]
Peer to Peer Pressure: Policy for the Sharing Economy
Grattan Institute (Minife & Wiltshire), 2017
[Early cost‑benefit framework now referenced by parliaments]
https://grattan.edu.au/report/peer-to-peer/
Living Like a Local or Rampant Tourism? Short-term Holiday Letting in New South Wales and the Regulation of Sharing by Planning Laws
Guy Dwyer and Tristan Orgill, 2017
[Wider discussion of social impacts from different perspectives]
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2988449
4. LEGAL CASES
The Proprietors – Fairway Island GTP 107328 [2020] QDC 68
O’Connor v Proprietors, Strata Plan No 51 [2018] 4 WLR 22
https://www.casemine.com/judgement/uk/5b2897d02c94e06b9e19badd
Body Corporate for Hilton Park CTS 27490 v Colin Robertson [2018] QCATA
Macleay Tower & Villas [2017] QBCCMCmr 12
Byrne v Owners of Ceresa River Apartments Strata Plan 55597 (2017) 51 WAR 304
https://jade.io/j/?a=outline&id=533006
Estens v Owners Corporation SP 11825 [2017] NSWCATCD 63
https://jade.io/j/?a=outline&id=546843
Owners Corp PS 501391P v Balcombe (2016) 51 VR 299
https://jade.io/j/?a=outline&id=484943
Lynkim Lodge [2016] QBCCMCmr 419
[no link]
Owners Corporation PS501391P v Balcombe (Owners Corporations) [2015] VCAT 956
https://jade.io/j/?a=outline&id=484943
Owners of Ceresa River Apartments Strata Plan 55597 v Haines [2015] WASAT 72
https://jade.io/j/?a=outline&id=399197
Sydney Diagnostic Services Pty Ltd v Hamlena Pty Ltd (1991) 5 BPR 11
5. FOUNDATIONAL THEORY {PRE 2014] & BACKGROUND MATERIALS
Peer-to-Peer Pressure: Policy for the Sharing Economy
Jim Minife and Trent Wiltshire, 2016
[Wider discussion of sharing assets and facilities in modern economies]
https://grattan.edu.au/wp-content/uploads/2016/04/871-Peer-to-peer-pressure.pdf
Land of the Free and Home of the Brave? HOA Law for Australian Strata
Sherry, 2014
[Shows how US ‘single purpose’ covenants foreshadow today’s no STR by laws
What Are the Practical Options to Regulate Long Term Contracts?
Bugden, Gary OAM, Sept 2011
[Applying laws that regulate long term management contracts for short term and holiday accommodation]
How Indefeasible Is Your Strata Title: Unresolved Problems in Strata and Community Title?
Cathy Sherry, 2009
[Wider discussion of legal controls in strata buildings and the impacts on property rights, including short term accommodation]
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2717230
Strata Title Property Rights: Private Governance of Multi-owned Properties
Cathy Sherry, 2019
[Broad analysis of property rights of owners, occupiers and others in strata buildings]
CONCLUSIONS
As you can see from this reading list [which is incomplete] there’s a lot of research, study, writing and thinking that’s occurred about short term letting and Air BNB in strata buildings.
So, perhaps before coming to quick conclusions about difficult and challenging issues that affect core features of shared ownership strata buildings, we could take time to review and study at least some of those previous efforts and thoughts.
Remember, it’s essential to think before acting.
May 14, 2025
Francesco ...