As the City of Sydney Council considers banning short-term rentals across 11 inner-city suburbs, a prominent Sydney Airbnb management expert is challenging what she describes as a politically convenient narrative that penalises compliant homeowners while overlooking unregistered operators.
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 failing to address the core issues at play. Data from the City of Sydney indicates there are 5,454 active short-term rental listings within the local government area, but only 2,468 are officially registered under the NSW Short-Term Rental Accommodation (STRA) framework, leaving more than 3,000 listings operating outside legal requirements.
"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."
Rather than pursuing new suburban restrictions, Cleary argues that enforcing existing legislation would be both a more practical and more equitable approach. "I am not clear on how rentals are bypassing the STRA registration, as this is required to list properties for stays under 90 days," she adds. "It is a pointless exercise to make credible providers in the industry jump through hoops, yet unscrupulous operators can bypass the system entirely."
The City of Sydney motion, passed on 28 April 2026, directs the council's 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 says the homeowners who stand to be affected bear little resemblance to the large-scale investors the policy appears to target.
"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," she explains. "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. It did not work in Byron Bay, and it will not work in Sydney."
Despite the ongoing regulatory uncertainty, Cleary maintains a measured outlook on the long-term direction of Sydney's short-term rental market. "Hopefully, what we will see is a true five-star experience for visitors to our city," she says. "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 property owners assessing their options amid the uncertainty, Cleary's guidance is grounded in individual circumstances. "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," she concludes.
More information about Cleary & Co can be found at their website.
