Airbnb Responds to Proposal to Prevent Vacation and Short Term Rentals of Single Family Homes

As investors with investment properties on the Sunshine Coast feel the pain of higher interest rates. It’s fair many are looking for strategies to increase their rental income to cover the staggering additional repayments.

I can see the temptation with AirBnB as the returns look fairly lucrative. Interestingly though we are now seeing investors do the opposite and leave AirBnB for the stability of regular weekly income.

In an attempt to try and levitate the rental shortage, the government has been looking into short-term rental of family homes through services like Airbnb.

It was proposed that independent “family homes” be taken out of the short-term/vacation market in order to address the rental crisis.

Criticisms have been made against Airbnb due to its alleged role in the housing crisis in Australia. Nonetheless, the suggestion to prohibit single family residences from the holiday and short-term rental sector has been soundly rejected by the short-term accommodation provider.

ARAMA has proposed that the government outlaw stand alone dwellings in an effort to alleviate the housing shortage across the country.

According to ARAMA’s CEO Trevor Rawnsley, the present crisis has been primarily triggered by foreign-controlled online travel agencies like Airbnb, due to their removal of family homes from the long-term rental market or owner occupancy, in addition to the rigorous new rental tenancy regulations.

According to Mr Rawnsley, governments should give incentives to investors, such as lower regulations and expenses, in order to make it financially feasible for them to alter their investments from short-term rentals to long-term ones.


An objection has been raised to the notion that overseas-based online travel agencies caused the housing crisis by Airbnb.

Furthermore, it can be seen that there is an increase in the amount of people that are utilising renewable resources for energy. This is a trend that has been gaining traction in recent times and is one that is expected to continue for the foreseeable future.


He noted that due to new regulations in various states that heavily favour the renter, investors are having difficulty renting out their properties to long-term occupants.

Airbnb has denied any fault in the housing affordability crisis, claiming they have been actively engaged in attempting to resolve the matter.

Michael Crosby, Airbnb’s Head of Public Policy for Australia and New Zealand, declared that the current crisis has been intricate for individuals, societies, and governments.

He stated that the sources of the problem differ depending on the location, these causes often predate the foundation of Airbnb by a long time and can include the availability of new homes, the percentage of public housing, the amount of vacant properties and rooms, the interest rates and the overall economic climate.

Airbnb has been taking steps to develop plans for the expansion of housing affordability and the growth of tourism.

He mentioned the University of NSW report, “A blueprint to tackle Queensland’s housing crisis”, which asserted that changes to short-term rental regulations are not the ultimate solution for increasing housing unaffordability, which has “much broader and longer-term structural drivers”.

Mr Crosby expressed that Airbnb was interested in collaborating to create solutions to the problems of housing availability and cost.

He stated that although short term rentals are a very small percentage of the entire real estate market, they are still looking for ways to make a beneficial impact on this subject.

In 2022, the popular short-term rental platform Airbnb proposed a plan to tackle the issues of housing affordability and tourism growth. This plan included the implementation of statewide registration systems and codes of conduct in all Australian states and territories.

According to Airbnb, a large number of individuals choose to offer their properties to make ends meet.

He stated that Airbnb is committed to increasing the number of tourists by introducing cheaper and more accessible travel options.

Providing a means for citizens to handle expanding mortgage payments and the escalating cost of living, short-term rentals offer a way for the average person to remain financially stable.

The results of an Airbnb poll of 2500 listings this year showed that more than a third of hosts in Australia reported that one of their motivations for hosting was to make money to keep up with increasing expenses.

Mr Crosby stated that a lot of hosts do not use their property for short-term lodging all the time; this is often done on an occasional basis to help them manage their mortgage, cover expenses and save for retirement.

Mr Rawnsley asserted that unit blocks should be utilised for tourism purposes through short-term letting, yet governments have permitted suburban family homes to be used as holiday rentals by being “tempted into permitting it due to the sharing economy”.

The renowned real estate specialist Andrew Winter.

He expressed that taking away houses in suburbs from the long-term residential housing rental market in a time of housing crisis is highly selfish, with no regard for those in need.

Andrew Winter, host of Selling Houses Australia, recently discussed the current property market, and he stated that the lack of rental properties is a result of stricter regulations set by the government and banks. He commented that the lending criteria are becoming increasingly “tighter and tighter” and “harder and harder”.

As a property manager who specialises in managing long-term residential properties, I feel AirBnB needs to be carefully considered as the fees are high, along with the amount of time required to manage the booking process with guests enquiring and coming and going.

Property investors have other alternatives available to them to assist with including costs like mortgage repayments

Reach out to me for advice if you need any

Contact Byron today.

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I’m a licensed real estate agent on the Sunshine Coast Qld Australia. I have over 20 years of experience selling residential property and managing & selling investment properties here on the Sunshine Coast.

Let me know how I can help you.