Owners corporations cannot prohibit the short-term leasing of apartments by lot owners.
In 2018, Victorian Parliament implemented the Owners Corporation Amendment (Short-stay Accommodation) Act which has given owners or occupiers of a lot the right to make a complaint to the owners corporation about unfavourable conduct of a guest undertaking a short stay.
Unfavourable conduct includes creating noise likely to substantially interfere with peaceful enjoyment of a property, and behaving in a manner likely to unreasonably and substantially interfere with the peaceful enjoyment of an occupier.
Essentially short term guests can now be fined through VCAT for their unruly behaviour in apartment complexes.
We are currently unaware of any intention of the Victorian Parliament to introduce any further legislation to restrict short term letting in Victoria, and consider any changes in this regard to be unlikely in the near future. Conversely, in New South Wales, laws were recently passed which prohibit properties from being offered up for short term accommodation for more than six months in any given year.
In the event that you wish to discuss this in greater detail, please contact one of our team members to discuss.