Can You Run an Airbnb in a Melbourne Apartment? Owners Corporation Rules
/Yes, you can usually run an Airbnb in a Melbourne apartment, but since 1 January 2025 an owners corporation can vote to ban short stays in its building. That one rule change makes the building you buy into as important as the unit itself.
If you're buying an apartment as an Airbnb investment, there are two layers of rules to check: the Victorian laws that apply to every host, and the rules of the owners corporation for that specific building. This guide explains both in plain English, and what to check before you sign a contract.
The two layers of rules
Victoria treats any booking of less than 28 days as a short stay. Two separate sets of rules apply to it.
1. State rules that apply to every host. From 1 January 2025 Victoria charges a short stay levy of 7.5% of the booking fees paid. When a booking goes through a platform such as Airbnb or Stayz, the platform pays the levy. When you take a booking directly, you pay it. Stays in your own principal place of residence, such as renting out your home while you're on holiday, are exempt. See the State Revenue Office's levy page for the details.
2. The rules of the owners corporation. Most Melbourne apartments sit under an owners corporation (often called a body corporate). It can make rules for the building, and since 2025 those rules can include a ban on short stays. This is the layer that catches investors out, because it varies from building to building.
It also pays to check your local council. Consumer Affairs Victoria notes that councils can have their own short stay rules, and that an owners corporation rule must be consistent with local planning laws.
What an owners corporation can and can't do
An owners corporation can ban short stays by rule, but only with a high level of support: a special resolution, meaning 75% of lot owners vote in favour (75% of lot entitlements if it goes to a ballot or poll). The rule can also start from a future date, to give owners and residents time to prepare.
There are limits. A ban can't apply to a lot that is the owner's or occupier's principal place of residence, so someone living in their unit can still rent out rooms or the whole unit while they're away.
Even where short stays are allowed, owners corporations have powers if guests cause problems:
They can issue breach notices for unreasonable noise, damage, hazards or blocked common areas.
The Victorian Civil and Administrative Tribunal (VCAT) can fine up to $1,100 and award up to $2,000 in compensation to affected residents.
After three breach notices for separate events within 24 months, VCAT can order that an apartment not be used for short stays for a period of time.
Owners and guests can both be held liable, so the way you manage guests protects your investment as well as your neighbours. These details come from Consumer Affairs Victoria's pages on making rules to ban short stays and laws to prevent unruly parties.
How to check a building before you buy
Do this before you sign, not after settlement. Your conveyancer or solicitor can help you get and read these documents.
Read the owners corporation rules. They're included with the contract documents. Look for any rule about short stays, guests, noise or common property use.
Read the owners corporation certificate. It sets out the rules, the fees and any special levies, and is part of the vendor's contract documents.
Ask for the minutes of recent meetings. Look back two to three years for any talk of banning or restricting short stays, plus breach notices, disputes and building defects.
Ask the manager directly. A short call to the owners corporation manager can tell you if a short stay rule has been proposed or is already in force, and what the building's attitude is.
Check the council. Confirm the local council's rules for short stays in the suburb, and that your plans fit local planning laws.
Look at the building itself. A building with many owner-occupiers and a strict atmosphere can be harder for Airbnb than one that already has other short stay units.
This is general information, not legal advice. Ask your solicitor or conveyancer to confirm the rules for the specific building.
How AG & Co. can help
AG & Co. buys, renovates, styles and manages Melbourne investment properties. When we look for an Airbnb apartment for a client, we check the building's rules before we look at the finishes, because a great unit in the wrong building can't earn what it should.
Our Airbnb Buyer's Advisory covers finding the right property, checking the owners corporation and setting it up to perform from day one. You can see the kind of results we aim for in our client projects, such as a Collingwood apartment we set up and manage and a South Melbourne townhouse we found and styled. If you're also weighing up the numbers, read how much you can earn from Airbnb in Melbourne and our guide to buying an investment property for Airbnb.
Thinking about an apartment? Get in touch for a free consultation and we'll help you check the building before you buy.