We are in a housing crisis. Every home that becomes available matters. That’s why we’re looking at ways to encourage property owners to move into the long-term rental market.

Melbourne has one of the biggest short-term rental markets in the country, with more than 4100 residential properties, or 14 per cent, currently being used for short stays in the City of Melbourne.

This means fewer homes available for people wanting to live in Melbourne.

Council is commencing a consultation process to develop a policy to free up the excess of short-term rentals, providing much needed homes in our city.

This consultation process will explore new policy options for the short-term rental accommodation sector. Any new regulations would not be introduced until February 2024.

Options under consideration include a new Local Law requiring short-term rental accommodation operators to register their properties with Council, and to introduce a cap on the number of days they can be rented.

A short-term rental accommodation local law would not apply to hotels. There is significant capacity in our hotels – including more than 10,000 new hotel rooms which have become available in the past two years. The proposed changes are designed to ensure the city’s tourism sector continues to thrive.

As Australia’s fastest growing city, we are considering all options that will deliver more housing, and the quickest way to do that is to utilise housing that is already in place.

This would be the first step to address the housing crisis and increase the number of homes available to our residents, students and key workers.

Stay updated on the Short-Term Rental Accommodation Policy project by following this page.

If you'd like to provide feedback via email, you can reach us at shorttermrentals@melbourne.vic.gov.au.



  • Timeline item 1 - complete

    Community consultation to inform Local Law 

    7 September to 29 September 2023

  • Timeline item 2 - active

    Council draft a new Local Law which considers legal requirements and community input  

    September to October 2023

  • Timeline item 3 - incomplete

    Statutory consultation on the Draft Local Law 

    October to November 2023 

  • Timeline item 4 - incomplete

    Amendments to Draft Local Law following feedback  

    December 2023 to January 2024

  • Timeline item 5 - incomplete

    Council Meeting to consider and adopt the proposed local law 

    February 2024 

Contact us

Have questions or want to learn more about the project?