Permits for Airbnbs required amid city rental crisis

Permits will be required to operate an Airbnb in Australia's biggest local council amid an ongoing rental crisis.

Brisbane Lord Mayor Adrian Schrinner is set to introduce the permit system for short-term accommodation including Airbnb after handing down his $4 billion council budget on Wednesday.

The Brisbane City Council has also called on the Queensland government to follow its lead and better regulate the short-stay sector.

More than 10,000 properties in Brisbane are used for short-stay accommodation, according to data analytics site AirDNA.

A year-long review by a Brisbane City Council task force found residents felt short-term accommodation was causing security concerns, overcrowding, noise and anti-social behaviour.

A system is now set to be introduced where a Brisbane landlord will require a council-approved permit before they can list their property for short term accommodation.

The council will only issue a permit if a property has appropriate planning approvals in place, body corporate support and a 24-7 property manager.

"We recognise that short-stay accommodation delivers an economic dividend to Brisbane, particularly during major events when hotels are full," councillor Fiona Cunningham said.

"However, the task force has heard from residents who are fed up with their residential apartment buildings turning into mini-hotels.

"Clearly more needs to be done to improve the accountability of operators to address complaints, and council needs the powers to weed out those who continue to do the wrong thing."

Properties that do not meet permit requirements would be forced to go back onto the long-term rental market to help meet demand in Brisbane.

Brisbane is the equal-second tightest rental market in the country, according to the latest PropTrack Market Insight Report.

The rental vacancy rate in Brisbane rose 0.07 but still sat at just 1.11 per cent in May.

An initial assessment found the permit system would put more than 400 homes back on the Brisbane rental market.

"Brisbane has been Australia's fastest-growing capital city over the last decade and we need to strike the right balance between the need for short-term accommodation during demand peaks and the concerns of residents," Ms Cunningham said.

Short-term rentals will continue being charged higher council rates to combat overcharging of prices and to encourage a return to the long-term market.

The council said there were a number of reforms the state government could look at to better regulate the short-stay sector.

"For example, we would support the state overhauling laws so bodies corporate can pass by-laws prohibiting or restricting short-stay accommodation in their buildings," Ms Cunningham said.

NSW is looking at a short-term accommodation levy to encourage owners to put their properties back on the long-term market, while Victoria already has a 7.5 per cent tax on Airbnbs.