NSW Rental Reforms 2025 & Short-Term Rental Regulations: A Guide for Airbnb Property Owners
The rental market in New South Wales is changing, and some important new regulations will take effect on May 19, 2025. These changes aim to create a fairer environment for both landlords and tenants. In addition, new regulations for short-term rentals, such as those listed on platforms like Airbnb, are also being introduced.
If you own a property on Airbnb in NSW, it’s important to know how these new rules will affect both long-term and short-term rentals. This guide will help you understand the main changes in renting laws and the updated regulations for short-term rentals. We’ll also show you how a professional partner like KozyGuru can assist you in navigating these new regulations and help protect your rental income.
As the rental market evolves, Sydney’s mix of older terrace houses and new apartment buildings highlights these changing times.
Understanding the May 2025 Rental Changes in NSW
On May 19, 2025, new rental changes took effect in New South Wales (NSW), aimed at making renting more secure for tenants while being fair to landlords. These updates are part of the government’s effort to create a better rental environment. Here’s a simple overview of the main changes that began in May 2025:
- Ending “No Grounds” Evictions:
Starting May 19, 2025, landlords can no longer end a lease without a good reason. If you rent a home, your landlord cannot just ask you to leave without explaining why. From now on, there are specific reasons that landlords can give for ending a rental agreement. These include selling the house, making major repairs, moving in themselves, or changing how the property is used (like turning it into a business).
This change aims to give renters more security and clarity. It also means that landlords who rent out their properties on platforms like Airbnb can’t just kick out long-term tenants without a valid reason. They will need to provide a genuine explanation and give you enough notice before you need to move. - Easier Pet Approvals:
It has become much easier for renters to have pets in their homes. Now, if you want to bring a pet into a rental property, you can make a formal request to your landlord. They can only say no for specific and reasonable reasons, like if the place isn’t suitable for pets or if there are already too many animals. Landlords must reply to your request within 21 days; your pet is automatically allowed if they don’t. Additionally, they can’t charge you extra rent or a larger security deposit because you have a pet. This change means that property owners should be ready to handle requests from tenants who want pets. Additionally, Airbnb hosts who now rent their places long-term must understand that they can no longer implement a general “no pets” rule. - Modernising Rent Payments:
Starting May 19, 2025, landlords must provide tenants with at least one easy and free way to pay rent online, like through a bank transfer or a service called Centrepay. This means tenants won’t have to pay any extra fees just to make their rent payments. Landlords can no longer require tenants to use apps or platforms that charge for processing payments. This change makes it easier and fairer for tenants to pay their rent. For landlords, they might need to change any old methods they used to collect rent, like cash or checks, and they can get help from professional property managers to make this transition smoothly.
Earlier reforms, already in effect since October 2024, limit rent increases to once yearly for all leases and ban fees for tenant background checks or lease prep. Combined with the May 2025 changes, these form a broad package of tenant-friendly laws.
What These Changes Mean for Airbnb Hosts and Property Owners
If you own a property you rent out on Airbnb or as a short-term rental, you might wonder how recent law changes could impact you. While the new rental laws set to take effect in May 2025 mainly focus on long-term rentals, there are still important things for Airbnb hosts in New South Wales (NSW) to consider:
- Switching between long-term and short-term use:
If you have a tenant living in your property and want to turn that place into a short-term rental, like an Airbnb, you need a good reason to end their lease. One acceptable reason is if you plan to use the property for something other than long-term renting, such as running a short-term accommodation. In this case, you can legally end the rental agreement, but you’ll need to provide proof of your plans and give the tenant proper notice.
It’s important to note that if you choose this route, there’s a rule that says you can’t rent the property to someone else for long-term use for at least a year after breaking the lease. In simple terms, if you say you’re moving to short-term rentals, you must do it. If you don’t follow this, you could face penalties. These rules are in place to protect tenants from being wrongly evicted, so as a property owner, it’s essential to plan your next steps carefully. - Impact on strategy and income:
The new rental rules could change how landlords rent their properties. If you decide to rent to long-term tenants, you’ll have to keep them for a while unless you have a good reason to end the rental agreement, since no-grounds evictions are not allowed anymore. Some landlords who like having the flexibility to use their property when they want might prefer short-term rentals, like Airbnb, so they can control when they rent or use it themselves.
However, stricter rules for short-term rentals in New South Wales might make some Airbnb hosts reconsider continuing with that option. This means they might consider stable long-term leases instead. Understanding these new rules is important for weighing the pros and cons of a steady, long-term rental versus the flexibility and seasonal limitations of short-term renting. - Tenant expectations and property standards:
When renting out your property, especially for longer leases or mid-term rentals, it’s important to understand that tenants are gaining more rights under new laws. For example, tenants can now ask for repairs to be made. In some instances, like if they’re facing domestic violence or receiving an eviction notice, they can leave the rental without facing penalties. Additionally, getting permission for pets has become easier.
For property owners, especially those who rent out spaces on platforms like Airbnb, keeping their property in good shape is crucial. Not only will this help you get better reviews from guests, but it also means you’re more likely to meet the needs of long-term renters. By making your property well-maintained and welcoming, you can attract responsible tenants and reduce the chances of conflicts. So, a tidy and friendly environment is key to success, whether you’re offering a place for a short visit or a more extended stay. - Compliance is key:
Following the new rental laws is important to avoid fines and conflicts. In New South Wales, there is a Rental Taskforce focused on making sure these rules are followed. Property owners must carefully handle things like notices, paperwork, and approvals. Keeping track of these details is vital for managing your rental property. If you hire a property management company, ensure they know the latest updates.
In summary, the reforms coming in May 2025 will create a more predictable experience for tenants while introducing more rules forlandlords. For those hosting on Airbnb, it’s important to stay organised and follow the new guidelines, especially if they manage both long-term and short-term rentals. Next, we’ll break down the specific rules for short-term rentals in New South Wales and how they impact Airbnb hosting.
Short-Term Rental Regulations in NSW (2025 Update)
New South Wales (NSW) has rules in place for short-term rentals, like those found on Airbnb, which are being updated regularly. If you’re renting out your home on a short-term basis in NSW, it’s important to understand and follow the local laws to do so legally. Here are the main points you should keep in mind:
- Mandatory registration and fire safety:
In New South Wales, anyone renting their property for short stays, like on Airbnb, must follow important rules to keep guests safe. First, hosts must register their property on a special government website, called the STRA Register. They must also show a Property ID number on their listing so everyone knows they follow the rules.
Specific safety measures need to be in place, such as smoke alarms connected in all bedrooms, fire extinguishers, a fire blanket in the kitchen, and clear evacuation plans displayed for guests. These requirements have been established to ensure everyone has a safe place to stay.
Hosts who don’t register their property or meet these safety standards could face fines or even be removed from rental platforms. Companies like Airbnb cooperate with the government to help ensure that all hosts have the necessary registration details. This new approach can catch some casual or part-time hosts off guard, making renting out their spaces harder without following these official guidelines. - Nightly caps on unhosted rentals:
New rules for short-term rentals in New South Wales (NSW) have been introduced to help manage the balance between tourism and available housing. If you have a property that you rent out without living there, you can only do so for a maximum of 180 nights each year in places like Greater Sydney and some other areas. This means that you can rent your property for about half the year.
This limit is counted on a per-property basis and resets every year on the date you registered your rental. You would break local laws if you rent your property for more than the allowed nights in these areas. This could lead to penalties, or you might need special local council permission to rent it out. These rules aim to keep some homes available for people to live in, rather than turning too many into full-time vacation rentals. - Stricter local caps in some regions:
Some local areas are tightening the rules for short-term rentals, especially in popular tourist spots. For example, Byron Shire, a well-known vacation area, has set a new limit: starting September 23, 2024, if you want to rent out your entire home, you can only do so for 60 days a year—unless your property is in special zones like central Byron Bay and Brunswick Heads, where you can rent it year-round.
If you’re renting out a room in your home and you’re there with your guests, there aren’t any limits on how many days you can rent it out. This is because having a host around is thought to reduce any negative impact on housing in the area.
What this means for people using platforms like Airbnb is that the number of days you can rent your place depends on where you live and whether you’re renting out the whole home or just a room. Make sure to check the rules your local council sets, as they can vary. Some apartment buildings might have rules about short-term rentals, and you might need additional permits if you want to rent beyond the allowed limits. - Enforcement and penalties:
New South Wales (NSW) has strict rules for short-term rentals, like those on Airbnb. Local authorities monitor these rentals closely to ensure hosts follow the guidelines. They check a special register to see if properties are being rented out for too many days. If a host exceeds the allowed number of rental days, they can face fines or even be ordered to stop renting their property.
Additionally, a set of rules is designed to ensure that hosts and guests behave appropriately. If a host causes problems, such as disturbing neighbours or not maintaining safety standards, their rental listing could be suspended.
In short, it’s essential for anyone who wants to be an Airbnb host in NSW to follow these rules. This means keeping important documents organised, like proof of registration and safety inspections, and sticking to the rental limits. Responsibility and following the rules are key to success as a host in this area.
For many property owners, the new short-term rental rules in New South Wales add some extra planning to their rentals. You may need to think strategically about the 180-day rental cap. This could mean focusing on bookings during the peak season or considering longer stays, like those of 21 days or more, which help reduce the number of guests coming in and out. You might also want to think about mixing in medium-term tenants during the rest of the year.
It’s also important to ensure your property is safe for guests, including checking that smoke alarms and safety equipment are working correctly. Don’t forget to renew your registration on the short-term rental register every year. With all these details, having a knowledgeable property manager can make a difference.
Navigating the New Rules with Professional Property Management
Being a landlord or an Airbnb host is getting more complicated due to recent changes in the rules. The good news is that you don’t have to figure it all out by yourself. KozyGuru offers Airbnb property management services in New South Wales to help property owners succeed in this new environment. As a trusted Airbnb management company, KozyGuru keeps up with all the latest regulations and handles the daily tasks involved in renting your property. This means you can enjoy the extra income without the stress of managing everything yourself. Here’s how working with a team of experts can benefit you:
A professional property manager ensures you follow all the rules and keeps everything organised, simplifying your life.
- Expert compliance guidance:
Keeping track of the rules and regulations can be a lot to handle. At KozyGuru, our team is dedicated to staying on top of all the updates related to property management in New South Wales. This means we follow changes in laws that affect things like rental agreements and local short-term rental guidelines. We help ensure that your property meets all the necessary requirements, whether you must send the proper notice to a long-term tenant or register your holiday home correctly. With our knowledgeable team, you can relax knowing you won’t miss any important steps or face fines. - Optimised rental strategy:
We know that choosing between long-term and short-term renting can be tricky, especially in today’s changing market. Our team is here to help you figure out the best way to make the most money from your rental property while following the rules. For instance, if the 180-day limit for Airbnb rentals is affecting your income, we can assist you in finding a reliable tenant for the rest of the year or even look into mid-length rentals for business travellers during slower periods. Whether you’re moving from long-term rentals to short-term ones or the other way around, KozyGuru will handle the entire process smoothly, making sure to end any previous leases correctly and getting your property ready for Airbnb guests. We aim to keep your property generating good returns all year round, no matter the regulations in place. - Hands-off operations and guest management:
Managing a property, especially with new pet rules and safety standards, can take time and effort. That’s where KozyGuru comes in to help. We handle everything for you, from talking to guests and booking stays to answering tenant questions. If you allow pets, we’ll make sure to follow the new regulations and set clear rules for pet owners to keep your property safe and well-maintained.
For short-term rentals, we ensure guests are checked out and understand the house rules, which helps avoid problems with neighbours. Think of us as your eyes and ears; we care for your property, keep your guests happy, and quickly solve any issues. This proactive approach ensures you follow the rules and helps protect your income. Happy guests leave great reviews, and satisfied long-term tenants are more likely to stay, which means fewer empty units for you. - Peace of mind and support:
When you choose KozyGuru as your partner for managing your Airbnb, you gain peace of mind. Our team has years of experience in navigating the rental market in New South Wales, and we’ve successfully managed many properties through all sorts of changes in regulations. If you ever have questions about new rules or how to deal with specific situations, like a guest wanting to bring a pet or receiving a notice from the local council, you can count on us for help. We’re a dedicated team of experts at KozyGuru, focused on ensuring your property stays profitable and complies with the law. We know the rules can be confusing, but we’re here to make the process easy and stress-free for property owners.
Conclusion: Thriving in a New Rental Landscape
The rental changes in New South Wales in 2025 have introduced a new way of renting that focuses on tenant rights and responsible short-term rentals. As a property owner or Airbnb host, staying updated and adaptable is important. By understanding the key changes—like the end of “no-grounds evictions” and the new limits on short-term rentals—you can adjust your strategy and avoid potential problems.
These reforms are designed to create a fair rental market rather than to discourage property owners. With the right guidance, you can still thrive in this new environment. Companies like KozyGuru are here to help you navigate these changes and make the most of your property in NSW. Whether you need assistance following the new rules, figuring out the best way to rent your property, or managing your day-to-day tasks, we support you.
Working with knowledgeable experts can help protect your income and discover new opportunities. By teaming up with property management specialists in NSW, you can ensure that your Airbnb or rental stays a steady source of income, without being caught off guard by new regulations. If you’re uncertain about how these 2025 changes might impact your property or want to safeguard your earnings in the short-term rental market, contact KozyGuru’s team for advice. With the right strategy and support, you can confidently tackle every new rule and keep your property business thriving in 2025 and beyond.
Sources:
- NSW Government – “Changes to rental laws” (Official summary of 2024–2025 rental reforms)
- NSW Planning Portal – “Short-Term Rental Accommodation” (STRA regulations: 180-day cap in Greater Sydney, safety and registration requirements)
- Byron Shire Council – Short-Term Rental Accommodation Fact Sheet (Byron Shire’s 60-day cap for non-hosted rentals from Sept 2024)