Is Airbnb legal in Melbourne?

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Melbourne, Australia Airbnb Rules & Regulations

Last updated on: 14th August, 2024

Don’t worry, Airbnb is legal in Melbourne!
Here are some statistics! As of 14th August, 2024, there are 19,802 listings available in Melbourne from Airbnb alone. MadeComfy manages 378 listings, while Flexistayz and Advante Homes operates 262 and 247 respectively. Out of 19,802 listings, 0% of listings have short-term rental licenses. Most listings are operating without official license. It means short-term rental regulation isn't strictly enforced in Melbourne.
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Map
Occupancy Rate

69%

AU$197

Daily Rate

AU$49K

Revenue (2023)

19,802

Number of Listings

Short-term Rental Regulation & Rules in Melbourne

In response to the growing concerns surrounding housing affordability and availability, the City of Melbourne has initiated regulatory changes aimed at curtailing short-term rentals, particularly those listed on platforms like Airbnb. This crackdown aligns with a broader global trend observed in major cities facing similar housing crises.

Key components of the new regulations include:

  1. Annual Registration Fee: Short-term rental hosts will be required to pay an annual registration fee, proposed to be around $350, to legally operate their listings.

  2. Days Cap: A limit on how many days a property can be rented on a short-stay basis is being discussed. Although the specific cap is still under consideration, suggestions have included a range of 180 nights per year, allowing some flexibility but significantly reducing the potential for short-term rental exploitation.

  3. Minimum Stay Requirement: There are proposals for establishing a minimum stay period of 30 days, similar to regulations recently implemented in places like New York City. This aims to deter investors from converting properties into short-term rentals, favoring long-term residential use instead.

The intention behind these regulations is to mitigate the housing crisis in Melbourne, where the vacancy rate is critically low at 0.8%, and there is a substantial shortfall of affordable housing units. The regulation changes are designed to free up housing stock for local residents who are increasingly struggling to find long-term rental options amidst rising prices and demand.

As these measures are implemented, they underscore the city's commitment to addressing the dual challenge of maintaining a vibrant tourism economy while ensuring equitable housing access for its residents. The City of Melbourne's approach to short-term rental regulation highlights the delicate balance required to navigate the complexities of modern urban living.

Airbnb Statistics in Melbourne! 🚀

Currently, there are 19,802 Airbnb listings in Melbourne, with 39% of entire houses earning up to AU$3,857 a month. The Average Occupancy Rate in Melbourne is 69% and the average daily rate is AU$197. According to vacation rental market data source Airbtics, a 2-bedroom apartment in Melbourne can make up to AU$54,853 each year.
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