Politics
Port Melbourne Council Expands Short-Term Rental Restrictions, Aiming to Ease Housing Pressures
Tighter rules on short-term rentals are set to impact local landlords and renters, as Port Melbourne moves to catch up with stricter policies seen in nearby cities.
How we reported this
Port Melbourne City Council voted last night to introduce new restrictions on short-term rental properties, a move expected to affect hundreds of local property owners and renters. The proposal, approved 7-2, limits permits for short-stay apartments to 120 nights per year and introduces a $250 annual registration fee for all operators. These changes take effect on 1 September, giving hosts less than two months to adjust.
Why Port Melbourne Is Tightening the Rules Now
The decision follows months of lobbying by tenant groups and local business leaders who argue that a sharp rise in short-stay listings has driven up rents and reduced available housing. According to the city’s planning committee, the number of short-term rentals in Port Melbourne has more than doubled since 2022, with over 1,100 listings recorded in April this year. Housing analysts point to policy shifts in St Kilda and Southbank, where similar caps have been credited with stabilising rents and freeing up over 600 long-term homes in the past 18 months. Council officers said these outcomes informed the proposed limits for Port Melbourne.
Local Impact: Who Will Feel the Changes
The registration fee and night caps will directly impact property owners who rely on platforms like BnBHub and StayLocal to let residential units. Landlords who use short-term letting as a main source of income will need to provide extra documentation each year and face penalties for exceeding permitted nights. For renters, policy drafters say the changes are expected to reduce market competition from short-term guests, making it easier to secure longer leases. A single-bedroom flat in Spencer Road has seen rent rises of 13 percent since last year, while vacancy rates fell to 1.4 percent in March, council figures show. Short-stay operators who rent out only a spare room remain exempt from the cap, but must now register with the city.
How Port Melbourne Compares Nationally
Port Melbourne’s new rules put it on par with policies in comparable mid-sized cities, but still less restrictive than Highton or Elwood, which impose a 90-night limit and fines up to $2,500 for non-compliance. Analysis presented by the city’s planning department highlighted that in Brighton, a similar cap was linked to a 5 percent increase in long-term rental availability within twelve months of implementation. Port Melbourne council’s budget papers allocate $180,000 over three years to administer the scheme and conduct compliance checks. Policy analysts say this investment is considered moderate for a municipality of Port Melbourne’s size.
The council has established a review committee to evaluate the new program’s effectiveness after its first year. Residents, landlords and advocacy groups will be able to submit feedback through the city’s online consultation portal from November. City officials say further adjustments are likely if shortages persist or if operators find loopholes.