Since its launch in 2007, Airbnb has disrupted the hospitality industry, giving travellers a way to book spare rooms, apartments, and houses directly with owners. For many property owners, the appeal is simple: higher nightly income than a standard lease, plus the flexibility to keep the property vacant between bookings.

But in a strata scheme, short-term letting brings unique challenges—and Owners Corporations are paying attention.

Insurance Risks

Standard home and contents insurance policies don’t always cover short-term letting. That means owners could face significant financial exposure if guests damage the property or common areas.

This risk isn’t hypothetical. The Sydney Morning Herald has reported cases where increased use of pools and gyms by short-term guests led some buildings to restrict or ban Airbnb altogether.

Who’s Responsible for Guests?

If you own in a strata scheme, you are responsible for your guests—whether they’re friends, long-term tenants, or Airbnb holidaymakers. This includes:

• Noise and behaviour in both the lot and common property
• Damage to facilities such as lifts, pools, or lobbies
• Disturbance of other owners’ enjoyment of their property

In short: if your guests cause issues, you’re the one held accountable.

Why Airbnb Is Different

Traditional leases (6–12 months) usually attract tenants who treat the property as their home. In contrast, short-term guests may be in “holiday mode”—using facilities heavily, hosting parties, and moving in and out frequently. This turnover can create friction in otherwise stable strata communities.

By-Laws and Short-Term Letting

Owners Corporations have the power to regulate short-term letting through by-laws. In NSW, schemes can:

• Pass a by-law restricting leases to a minimum of three months
• Enforce the by-law by monitoring public Airbnb listings for their building
• Take formal action against non-compliant owners through NCAT

Such measures don’t ban all rentals—they simply set clear parameters that protect the peace and amenity of residents.

Metro Strata’s Role

At Metro Strata, we understand both sides of the Airbnb debate. Short-term letting can be an income boost, but it can also create risks for the wider community. We work with Owners Corporations to:

• Review insurance coverage
• Draft and implement by-laws
• Provide impartial guidance on managing disputes

Final Word

Airbnb has changed the way we travel and host, but in strata schemes, it comes with added complexity. Owners need to balance opportunity with responsibility, and Owners Corporations have the power to set the tone for their community.