Over 3,000 Sydney Airbnb Hosts Operate Outside the Law

Less than 2% of Sydney's housing stock is listed on Airbnb. The real problem is the 3,000 unregistered hosts nobody is policing.

SYDNEY, NSW - As the City of Sydney Council examines potential short-term rental bans across 11 inner-city suburbs, a prominent Sydney Airbnb management expert is challenging what she describes as a politically convenient narrative - one that penalises compliant homeowners while leaving the operators actually breaking the rules untouched.

Krystina Cleary, Founder of Cleary & Co, one of Sydney's most recognised short-term rental management agencies, says the broader debate linking Airbnb to the housing crisis is fundamentally misdirected.

"The percentage of Sydney's total real estate listed on Airbnb sits somewhere between 0.9 and 1.6 percent," says Cleary. "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. It is growth economics 101: centrally located areas become more populated, they change, and they increase in value. If you are a homeowner or investor paying the mortgage month on month, year on year, doesn't that give you the right to decide what you do with your own property?"

The Real Story: An Enforcement Gap Nobody Is Fixing

Data from the City of Sydney shows 5,454 active short-term rental listings within the LGA, yet only 2,468 of those are officially registered under the NSW STRA framework. That leaves more than 3,000 properties operating outside the legal requirements.

Cleary, who has managed Sydney properties through multiple regulatory cycles since 2017, describes the compliance gap as a systemic failure that undermines the entire regulatory structure.

"I am not clear on how rentals are bypassing the STRA registration, as this is required to list properties for stays under 90 days. Without registering you are either impacting short-term letting options or claiming to be exempt for whatever reason, and this should be picked up by the Department of Planning who are supposedly auditing this process. It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely."

Rather than pursuing new suburban bans, Cleary contends the more practical and equitable path forward is consistent enforcement of the laws already on the books.

Real Homeowners. Real Consequences.

The City of Sydney motion, passed on 28 April 2026, directs its CEO to investigate restricting non-primary-residence short-term rentals in suburbs including Darlinghurst, Surry Hills, Pyrmont, Potts Point, and Chippendale - areas where rental vacancy rates sit below 3 percent.

Cleary argues the homeowners who stand to be affected bear little resemblance to the faceless investors the proposed policy targets.

"Our clients are a diverse bunch. Some are using their asset to fund their retirement, to visit their kids and grandkids as they live elsewhere in Australia or overseas. Many are using their property income to fund their businesses, or to cover medical expenses for serious illness. 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. With the current economic uncertainty, who does this actually serve? It did not work in Byron Bay, and it will not work in Sydney."

The Future: Quality Over Quantity

Despite ongoing regulatory uncertainty, Cleary holds a measured outlook on the long-term direction of Sydney's short-term rental market.

"Hopefully, and maybe somewhat optimistically, what we will see is a true five-star experience for visitors to our city. Unscrupulous hosts, poorly presented properties, and operators trying to cut corners to make a fast dollar only work in the short term. They have no long-term staying power. 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."

For homeowners assessing their options amid the uncertainty, Cleary's position is straightforward.

"It is a personal decision for the homeowner, always. We provide impartial, factual, real advice and we discuss their needs thoroughly from the outset to understand whether this is a feasible and sensible option for them."

Key Facts

• The City of Sydney passed a motion on 28 April 2026 directing its CEO to investigate STR restrictions across 11 inner suburbs
• 5,454 active STRA listings exist in the City of Sydney LGA; only 2,468 are officially registered
• Short-term rental listings represent an estimated 0.9 to 1.6% of Sydney's total housing stock
• NSW law caps non-hosted STRs in Greater Sydney at 180 days per year; hosted properties have no cap
• Bookings of 21 or more consecutive nights are exempt from the 180-day cap under current legislation
• The investigation is ongoing. No ban has been implemented.

About Cleary & Co

Cleary & Co is a Sydney-based short-term rental management company founded in 2017 by Krystina Cleary, a trained interior designer and former tech industry executive. The company manages over 100 properties across Sydney's inner suburbs including Surry Hills, Newtown, Erskineville, Chippendale, Redfern, Bondi, and Cronulla.

Cleary & Co holds Airbnb Superhost and Guest Favourite status across its entire managed portfolio, placing all client properties in the top 10% of Airbnb listings worldwide. The company has been featured in Time Out Sydney, Travel Mag, and Destination NSW.

The company offers a full range of short-term rental services including interior design and styling, professional photography, listing optimisation, dynamic pricing, guest management, and compliance advisory.

Website: www.clearyandco.com.au

Contact Information:

Cleary & Co. | Airbnb Property Management | Sydney

Suite 4447, 526/368 Sussex St
Sydney, NSW 2000
Australia

Krystina Cleary
+61 1800 253 279
https://www.clearyandco.com.au