What is the 180-Day Cap?

NSW regulations limit short-term rental accommodation (STRA) to a maximum of 180 days per calendar year per property. This cap applies to entire residences and shared accommodation in most areas of NSW, including Greater Sydney.

The 180-day limit is designed to protect the long-term rental market and maintain housing stock. It's a straightforward rule: your property can be rented on a short-term basis for no more than 180 days in any 12-month period.

How Does the Count Work?

The 180-day cap is calculated based on the number of days your property is booked, not the number of separate bookings. A 7-night stay counts as 7 days toward your 180-day limit.

The calendar year runs from 1 January to 31 December. If you reach 180 days by November, you cannot accept new bookings for the remainder of that year.

Planning for the 180-Day Limit

Effective owners in Sydney plan their STRA calendar strategically. Consider these approaches:

  • Seasonal focus: Some owners book heavily during peak tourism seasons (spring, summer, holiday periods) and use off-season for maintenance or long-term tenants.
  • Pricing strategy: Higher nightly rates during limited STRA windows can maximise revenue within the 180-day constraint.
  • Hybrid approach: Combine 180 days of STRA with long-term tenants for the remaining ~185 days, creating predictable mixed income.
  • Multi-property strategy: Owners with multiple properties can diversify STRA allocation across their portfolio.

Registration and Compliance

Most properties must register with NSW Fair Trading before accepting STRA bookings. Registration is free but mandatory. You'll receive a registration certificate that must be included in your listing on booking platforms.

Keep records of all bookings, including dates and guest information. This documentation is essential if NSW Fair Trading audits your property.

Exceptions to the Rule

Not all properties are subject to the 180-day cap. Key exceptions include:

  • Properties in regional areas designated as "Regional Hosted Accommodation" (longer limits apply)
  • Hosted accommodation where the owner lives in the property (limited shared spaces)
  • Certain holiday apartments in holiday apartment buildings approved before 2024

Check with NSW Fair Trading or a local property advisor to confirm whether your property falls under an exception.

The Bottom Line

The 180-day cap is a fixed constraint for most Sydney owners. Rather than view it as a limitation, successful operators treat it as a parameter for strategic planning. High occupancy rates, premium positioning, and strong pricing during your 180 available days can generate excellent returns while maintaining compliance.

If STRA is part of your property strategy, ensure you understand your registration obligations, track your booking days meticulously, and plan your calendar well in advance.