Airbnb Rules in Owners Corporations Victoria

By the Pearson Chambers Conveyancing.
Published 22 April 2026

We get asked this all the time by buyers looking at apartments in Southbank, Docklands, Carlton and the inner north. The worry is usually the same: can I run Airbnb in this building, and if I do not want to, how do I avoid buying into a building that feels like a hotel?

The short answer: In Victoria, owners corporations can make rules by special resolution to ban short stay accommodation in lots from 1 January 2025, though that ban cannot apply to a lot that is the owner’s or occupier’s principal place of residence. On top of that, the Victorian short stay levy is 7.5% of the total booking fee for stays of less than 28 consecutive days, and the key place buyers will usually find building specific rules is in the owners corporation material attached to the Section 32.

What do Airbnb rules mean in a Victorian owners corporation?

If you are buying an apartment or townhouse with shared property, Airbnb rules are not just a lifestyle issue. They can affect how you use the lot, how quiet the building feels on a Friday night, and whether your future plans still stack up once you move in.

An owners corporation manages the common property and sets rules for the building. If you want a plain English refresher on what an owners corporation is, start there before you read the rest of the paperwork. In practical terms, the rules can shape everything from pets and parking to moving trucks, noise complaints and short stay bookings.

For Melbourne buyers, this matters most in apartment towers and mixed use developments where owner occupiers, long term renters and short stay guests can all be in the same lift queue. A slick listing in Southbank can look perfect at inspection, then feel very different once you realise a large slice of the building turns over every few nights.

Can an owners corporation ban Airbnb in Victoria?

Yes, it can, and that is the big change many buyers miss. Since 1 January 2025, Victorian owners corporations have been able to make rules by special resolution that ban the use of lots for short stay accommodation.

That means the old assumption that a building cannot really stop Airbnb is no longer safe. Some older guides still talk about blanket bans being shaky. For Victorian buyers in 2026, the better question is whether this owners corporation has already passed a valid rule, or is about to vote on one.

There is one major carve out. A rule cannot ban short stay use of a lot that is the principal place of residence of the lot owner or occupier. So if someone genuinely lives there, they may still be able to let out a room or rent the property while away for a short period. A holiday investment apartment is a different story.

A rule also needs to be made properly. In most buildings that means a 75 per cent special resolution. If the paperwork is sloppy, the wording is vague, or the rule is not consistent with the broader law, there is still room for dispute. Still, from a buyer’s point of view, the practical message is simple: do not assume Airbnb is allowed, and do not assume it is banned. Check the documents.

Where do Airbnb rules appear in a Section 32?

Most buyers will find the answer in the owners corporation paperwork attached to the Section 32 vendor statement. The owners corporation certificate is the anchor document, and it should come with the rules and the resolutions from the last annual general meeting.

That matters because short stay rules often sit in one of three places:

the registered rules themselves
AGM resolutions showing a new rule has been passed
recent records that show a short stay rule is being proposed or enforced

Consumer Affairs Victoria also warns that Section 32 statements can be prepared well before the sale. So even if the certificate is technically there, it may not tell the whole story if it is stale. In a fast moving building, especially one with a lot of investor owned apartments, six months can make a real difference.

We have had clients come to us after an agent says, ‘There are no issues with the OC,’ only for the attached records to tell a very different story. The minutes might mention repeated complaints about weekend parties, or a motion to prohibit short stay use at the next meeting. That is exactly the sort of detail you want before you sign, not after settlement.

If you want a fuller walk through on how to read an OC certificate, it is worth doing that before an auction or during the cooling off window on a private sale.

What should a buyer check before signing?

The safest approach is to treat short stay rules as one part of your wider apartment due diligence, not a side issue. A buyer should usually check five things.

Read the current rules, not just the marketing spin. Look for any mention of short stay accommodation, holiday letting, minimum stay periods, guest registration, key collection, noise, security access and use of shared facilities.
Read the latest AGM material and recent records. A building may not ban Airbnb today, but it may be one vote away from doing so. That can matter a lot if your finance plan depends on short stay income.
Check whether the certificate looks current. If the Section 32 was pulled together months ago, ask whether there is a fresher certificate or fresher records available.
Look for complaints and enforcement history. Repeated noise complaints, breach notices, security concerns, damage to common property and VCAT disputes can tell you what living in the building is really like.
Match the paperwork to your own plans. Buying a first home to live in is different from buying an apartment you hope to let on Airbnb during festival season or while you work interstate.

In our practice, we have seen short stay trouble show up most often where the building sells a lifestyle dream but the paperwork shows constant turnover, strained security arrangements, and neighbours who are fed up. That tension tends to surface in inner city towers, yet it can just as easily appear in a low rise block near a hospital, university or beach.

What happens if short stay guests disturb the building?

Victoria gives owners corporations and residents a real enforcement path where short stay guests cause trouble. This is not just a matter of posting a stern sign near the lift.

If short stay occupants make unreasonable noise, interfere with other residents, create health and safety risks, damage lots or common property, or obstruct common property, the owners corporation can issue breach notices. If a lot receives three breach notices for separate events within 24 months, VCAT can step in and restrict that apartment from being rented out for short stay use for a period.

VCAT can also make orders that bite financially. The tribunal can award compensation of up to $2,000 to affected residents for loss of amenity, and fines can reach $1,100 for breaches of the Act. The owner and the guest can both end up on the hook.

For a buyer who hates the idea of living next to revolving party guests, that is reassuring. For a buyer planning to host short stays, it is a reminder that guest conduct is not just a building management headache. It can become your legal and financial problem very quickly.

How does the 7.5% short stay levy affect buyers and hosts?

The short stay levy does not decide whether Airbnb is allowed in your building. It does change the numbers, and that matters if you are buying with one eye on short stay income.

In Victoria, the levy is 7.5% of the total booking fee for stays of less than 28 consecutive days. The total booking fee can include items like cleaning fees and GST. If the booking is made through a platform such as Airbnb, the platform is usually the party that pays the levy to the State Revenue Office. If the booking is taken directly, the owner or tenant who accepts the booking is the one liable.

There are also exclusions. A short stay in the principal place of residence of the owner or renter is generally outside the levy. Hotels, motels and hostels are outside it too, and some secondary arrangements fall outside it where the space cannot be occupied separately from the main home.

For many buyers, this does not stop the deal. It simply becomes part of the broader hidden costs of Melbourne apartment living, along with owners corporation fees, insurance, special levies and maintenance risk. If your borrowing plan only works because of optimistic Airbnb income, slow down and run the maths again.

What is the smart move before you sign?

The smart move is to get the owners corporation material reviewed before you commit, especially if you are buying at auction or close to auction day. Once the contract is unconditional, surprise rules are much harder to unwind.

A good pre signing review should answer a few plain questions:

Is short stay use banned, restricted, or still open in this building?
Is there a pending vote or brewing dispute about Airbnb?
Is the certificate current enough to rely on?
Does the building already have a history of short stay complaints?
Will your intended use of the property fit the building rules?

That is where a conveyancer earns their keep. We are not just checking whether a document exists. We are checking whether it says something that changes your risk.

Frequently asked questions

Can an owners corporation ban Airbnb in Victoria?

Yes. From 1 January 2025, a Victorian owners corporation can make a rule by special resolution banning short stay accommodation in lots. The main exception is where the lot is the owner’s or occupier’s principal place of residence, because the ban cannot apply in that situation.

What is the Victorian short stay levy?

The Victorian short stay levy is a 7.5% charge on the total booking fee for short stays of less than 28 consecutive days in the same property, not counting the checkout day. Where a booking is made through a platform, the platform usually pays the levy. Direct bookings usually leave the liability with the owner or tenant who accepted the booking.

Do I pay the short stay levy if I rent out my own home?

Usually no, if the property is your principal place of residence. That principal residence exclusion is one of the key carve outs under the Victorian short stay levy rules. Buyers should still be careful with granny flats, tiny homes or other separate dwellings on the same land, because those can be treated differently.

Where do Airbnb rules appear in a Section 32?

They usually appear in the owners corporation certificate package attached to the Section 32, especially in the registered rules and the latest AGM resolutions. The records may also show proposed rule changes, complaints, legal action or other signs that the building is tightening its short stay position.

Can I pull out if Airbnb rules were hidden in the Section 32?

Sometimes, yes. If a Section 32 is incomplete, inaccurate or misleading, a buyer may have rights before settlement, though the outcome depends on timing and the exact defect in the disclosure. This is one of those moments to get advice quickly, because delay can cost you useful options.

What happens if a short stay guest disturbs neighbours in an owners corporation building?

The owners corporation can issue breach notices for things like excessive noise, interference with residents, hazards, damage or obstruction of common property. If there are three breach notices for separate events within 24 months, VCAT can restrict that lot from being used for short stay accommodation for a period. VCAT can also award up to $2,000 in compensation for loss of amenity and impose fines up to $1,100.

Does the short stay levy apply to stays over 28 nights?

No. The levy is aimed at stays of less than 28 consecutive days in the same property, excluding the checkout day. Once you move past that threshold, you are outside the short stay levy rules, though other tenancy rules may then become relevant.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused team that helps buyers and sellers across Victoria with contracts, Section 32 statements and settlement paperwork every day. We regularly review owners corporation records for first home buyers looking at apartments, units and townhouses, especially where building rules could change how the property is used. Short stay restrictions are one of those practical issues we check in the ordinary course of a careful pre signing review.

Sources we consulted

Book a complimentary Section 32 review

If you are looking at an apartment or townhouse in a Victorian owners corporation, and you want the short stay rules checked before you commit, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review. We can read the paperwork, explain the practical risk, and help you decide your next step with clear advice in plain English.

Email: contact@pearsonchambers.com.au
Complimentary Section 32 contract review