Can body corporate by-laws restrict Airbnb and short-term letting?

Yes — a body corporate can regulate short-term letting through its by-laws. By-laws can restrict the frequency, duration, or manner of short-term letting, or require committee approval before an owner commences short-term letting. However, a by-law that completely prohibits all short-term letting may face legal challenge as being too restrictive. The most defensible approach is a by-law that sets reasonable conditions — such as requiring the owner to register guests, maintain a noise complaints contact, and ensure guests comply with all other by-laws — rather than an outright ban. Note that short-term letting is also subject to council zoning rules and, in some cases, state tourism licensing requirements. These operate separately from body corporate by-laws. This article is general information only and not legal advice.