Owning a short-stay or holiday home in Victoria can be a great way to earn reliable income, and with the right knowledge and support, staying on top of new state’s rules doesn’t have to feel overwhelming.
Staying up-to-date with obligations like the Victorian Short-Stay Levy, council permit expectations, safety standards, and owners corporation by-laws is crucial to avoid fines, keep guests safe, and protect your investment.
This guide breaks down the key compliance areas to be aware of in 2026, and shows how working with a trusted property manager like Air Design Australia can take the stress out of staying compliant, while maximising your returns!
1. The Victorian Short-Stay Levy — What Hosts Must Do
From January 1, 2025, the Victorian Government introduced a 7.5 % Short-Stay Levy on all short-stay bookings (stays under 28 days). This is a state-level tax that applies to revenue received from platforms such as Airbnb, Booking.com and Stayz.
Your obligations
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Hosts must register with the State Revenue Office if they take direct bookings, and ensure the correct levy is paid on all qualifying bookings.
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Platforms may collect and remit the levy on your behalf, but you are ultimately responsible if you accept direct bookings.
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Exemptions are limited; for example, a short stay in your principal place of residence may be excluded.
Partnering with a full-service management company takes the guesswork out of compliance, ensuring your property meets all regulations without you lifting a finger.
Air Design stay in East Melbourne
2. Local Council Rules and Planning Requirements
While Melbourne doesn’t currently have a single city-wide cap on short-stay nights, councils across Victoria have greater authority to introduce permits, registration requirements, or codes of conduct for short-stay properties.
What owners need to check
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Whether your property needs a local planning permit before listing.
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Any local council conditions around safety, noise, parking or waste that must be communicated to guests.
If councils begin enforcing permit systems or annual registration fees, manual compliance becomes increasingly time-consuming.
3. Strata and Owners Corporation By-Laws
In Victoria, owners’ corporations now have the power to ban short-stay accommodation with 75 % support from lot owners.
Before you list:
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Review strata by-laws to confirm whether short stays are permitted.
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Seek any written approvals necessary to avoid disputes or compliance issues.
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Keeping careful records of correspondence and approvals is also essential.
Having an expert like Air Design on your side means you never have to worry about evolving rules or new requirements – we keep your property safe, legal and profitable.
Shared rooftop area at Air Design Abbotsford property
4. Safety Standards: Smoke Alarms and Fire Equipment
All rental properties in Victoria must comply with fire safety and smoke alarm laws — which also apply to short-stay rentals.
What hosts must do
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Install and maintain approved smoke alarms as required by state regulations.
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Test them regularly and keep records in case of audits.
Non-compliance can lead to fines and increased liability if an incident occurs.
How a Property Manager Can Simplify Compliance
Navigating the above obligations alone is time-consuming and complicated — especially if you own multiple properties. This is where a professional manager adds real value.
Air Design Australia offers full-service short-stay property management that handles every compliance and operational detail so you can earn income without the stress.
How Air Design helps with every compliance requirement:
✔ Levy registration & tax compliance
Air Design monitors changes like the Victorian Short-Stay Levy and ensures bookings are classified correctly and returns are lodged on time, relieving you of administrative burden.
✔ Local council rules & permits
Their team stays informed about council requirements in Melbourne and surrounding areas, advising you on any permit needs or rule changes before you list.
✔ Safety & maintenance compliance
From coordinating smoke alarm testing and annual checklists to organizing professional maintenance, Air Design ensures your property meets all safety standards.
✔ Guest communication & support
Air Design handles all guest messaging, check-ins, check-outs, complaints and emergencies — 24/7 — reducing neighbour disputes and compliance complaints.
✔ Documentation & reporting
Comprehensive records including revenue reports, safety inspection logs and communications are maintained, making audits and insurance claims stress-free.
✔ Revenue & listing optimisation
Beyond compliance, Air Design uses professional listing creation, pricing strategies, marketing and interior design insights to maximise your occupancy and nightly rates.
✔ Trusted experience across NSW & VIC
With over 20 years of combined experience in property, real estate and short-stay markets — led by licensed industry professionals — Air Design offers both local Melbourne expertise and national scale.
Final Checklist: What You Must Do For 2026
✅ Register for the Victorian Short-Stay Levy or confirm platform collection.
✅ Review relevant council permit and planning requirements.
✅ Confirm strata/owners corporation bylaws allow short stays.
✅ Install & maintain compliant smoke alarms and safety equipment.
✅ Prepare clear guest manuals, neighbour guidelines and emergency plans.
