Is Airbnb Allowed In Melbourne?
Many Melbourne residents, both prospective hosts and guests, are wondering whether and how the city’s laws and regulations address the growing number of short-term rental platforms like Airbnb. There are a lot of options for short-term rentals in Melbourne, a city famous for its thriving tourist sector, multicultural neighbourhoods, and lively culture.

Nevertheless, hosts must conform to numerous regulations and norms, making legal navigation a complex process. In this article, we’ll go over the ins and outs of Melbourne’s legislation regarding short-term rentals, giving you all the information you need to know about whether or not you can use Airbnb in Melbourne and how to follow the rules.
Is Airbnb Allowed In Melbourne?
Yes, Airbnb is allowed in Melbourne, but some specific regulations and guidelines hosts need to follow. Here are some key points:
- Local Council Regulations: Different councils within Melbourne may have specific rules regarding short-term rentals. Hosts need to check with their local council to ensure compliance with any local laws or regulations.
- Planning Permits: In some cases, a planning permit may be required, especially if the property is being used for commercial purposes or if it’s a large apartment building.
- Owners Corporation Rules: If the property is part of an apartment complex, the owner’s corporation (body corporate) may have rules about short-term rentals. Hosts need to check and comply with these rules.
- Insurance: Hosts should have appropriate insurance coverage that includes short-term rental activity.
- Fire Safety: Properties used for short-term rentals must meet fire safety standards. This may include having smoke alarms, fire extinguishers, and clear evacuation plans.
- Tax Obligations: Hosts need to declare any income earned from short-term rentals to the Australian Taxation Office (ATO) and may need to pay income tax, GST, and other relevant taxes.
- Victoria’s Short-Stay Accommodation Act: This act includes specific provisions for short-term rental properties, such as managing guest behaviour and resolving disputes.
It’s important for anyone considering listing their property on Airbnb in Melbourne to thoroughly research and comply with all relevant regulations and legal requirements.
How Does Melbourne Accommodation In Airbnb Work?
Airbnb has revolutionized the way people find and book accommodation, offering unique stays that range from private rooms to entire homes. Here’s a step-by-step guide on how melbourne accommodation airbnb works for both hosts and guests:
For Guests
Search and Browse
- Guests start by entering their destination (Melbourne), travel dates, and the number of guests.
- They can filter results by price, property type, amenities, and more to find the perfect accommodation.
Explore Listings
- Each listing provides detailed information, including photos, descriptions, amenities, house rules, and guest reviews.
- Guests can read host profiles to learn more about who they’ll be staying with or renting from.
Booking
- Once a suitable property is found, guests can either book instantly (if the host allows instant booking) or send a reservation request to the host.
- The reservation request will include a brief introduction and the purpose of the stay, which the host can review before accepting.
Payment
- Payment is handled securely through Airbnb’s platform. The total cost includes the nightly rate, service fees, and any applicable taxes.
- Guests receive a confirmation once the booking is accepted, and payment is only transferred to the host after check-in.
Check-In
- Hosts provide check-in instructions, which may include key pickup details, entry codes, or meeting times.
- Guests can communicate with hosts through Airbnb’s messaging system to clarify any details.
Stay and Review
- During their stay, guests can enjoy the accommodation and contact the host through Airbnb if any issues arise.
- After the stay, guests are encouraged to leave a review, sharing their experience and rating the property.
For Hosts
Create a Listing
- Hosts begin by creating a listing on Airbnb’s platform, providing details about the property, amenities, house rules, and pricing.
- High-quality photos and a thorough description help attract potential guests.
Set Pricing and Availability
- Hosts can set their nightly rates, cleaning fees, and any additional charges.
- They can also manage their calendar to indicate when the property is available for booking.
Guest Interaction
- Hosts review and respond to booking requests. They can choose to approve or decline requests based on the guest’s profile and message.
- Communication with guests is essential to ensure a smooth check-in process and address any questions or concerns.
Preparation
- Hosts prepare the property for guests, ensuring it is clean and stocked with essentials.
- Clear instructions for check-in, house rules, and local recommendations can enhance the guest experience.
Check-In and Stay
- Hosts may meet guests in person or provide self-check-in options.
- Being available for any issues or questions during the stay can lead to positive reviews.
Review and Payment
- After the guest checks out, hosts are encouraged to leave a review.
- Payment is processed through Airbnb, with funds typically available to the host 24 hours after the guest’s scheduled check-in time.
Airbnb provides a secure and convenient platform for both hosts and guests, facilitating unique and personalized accommodation experiences in Melbourne.
Are Airbnb Cheaper Than Hotels?
When comparing Airbnb accommodations to hotels, several factors can influence whether an Airbnb is cheaper than a hotel. Here’s an analysis to help understand the cost differences:
Location
- In central or highly sought-after areas of Melbourne, hotel prices can be significantly higher than Airbnb listings.
- In less touristy or suburban areas, Airbnb might offer substantial savings compared to hotels.
Length of Stay
- For longer stays, Airbnb often provides discounts, making it more cost-effective than hotels which typically charge a nightly rate without significant discounts for extended stays.
Type of Accommodation
- Renting an entire home or apartment on Airbnb can be more economical for families or groups compared to booking multiple hotel rooms.
- Solo travellers or couples might find hotel rooms to be competitively priced, especially with amenities like daily housekeeping and breakfast.
Amenities
- Airbnbs often come with kitchen facilities, allowing guests to save money by preparing their meals.
- Hotels might offer perks like free breakfast, a gym, or a pool, which could justify higher prices for some travellers.
Additional Fees
- Airbnb listings often have additional fees such as cleaning fees, service fees, and sometimes security deposits.
- Hotels typically include taxes in their nightly rates, and while they may have additional fees (e.g., resort fees), they are usually more straightforward.
Season and Demand
- Prices for both hotels and Airbnb fluctuate based on demand, events, and seasons. During peak tourist seasons or major events in Melbourne, both types of accommodations can see significant price increases.
Conclusion
Several criteria, including location, duration of stay, kind of housing, facilities, and additional costs, determine whether an Airbnb in Melbourne is more affordable than a hotel.
While staying in an Airbnb can save you a ton of money, particularly on longer stays or with a big group, hotels have more stable prices and more amenities, so they can be worth it to some tourists.
Centrally located hotels may provide affordable rates for shorter stays or lone travellers with extra amenities like daily housekeeping and breakfast included in the price. When compared to restaurants, Airbnbs can be a more cost-effective option for larger groups looking for shared kitchens and living quarters.
In the end, tourists visiting Melbourne should weigh the pros and downsides of each option thoroughly before deciding which one is ideal for them.