Short-Term Rental (Airbnb) Use in Residential Apartment Buildings

The growth of Airbnb and other short-term rental platforms has significantly changed how residential apartments are used across Australia. While many strata buildings were originally designed for permanent residents, an increasing number of units are now being used for short-term accommodation.

From a fire safety perspective, this change in use is not minor. In fact, short-term accommodation presents a different risk profile to traditional long-term residential occupation. Understanding these differences is critical for building owners, body corporates, strata managers, and lot owners.

Building Classification Matters

Under the National Construction Code (NCC), buildings are classified based on their intended use.

Long-Term Residential (Typical Apartment Buildings)

Most apartment buildings fall under:

  • Class 2 – Sole-occupancy units (SOUs) used as permanent dwellings.

These buildings are designed on the assumption that occupants:

  • Are familiar with the layout
  • Know evacuation paths
  • Understand building alarm signals
  • Have ongoing awareness of building procedures

Short-Term Accommodation

Where units are used for Airbnb or holiday letting, the classification may shift toward:

  • Class 3 – Residential buildings other than Class 1 or 2, including hotels, motels, boarding houses, and some short-term accommodation.

Class 3 buildings are designed on the assumption that occupants:

  • Are unfamiliar with the building
  • May be sleeping at the time of a fire
  • Do not know evacuation procedures
  • May include international guests with language barriers

This distinction is fundamental from a fire safety design perspective.

Key Fire Safety Differences

Occupant Familiarity and Behaviour

Long-Term Residents:

  • Know exit routes
  • Understand fire alarms
  • Are more likely to respond quickly and correctly
  • May assist others during evacuation

Short-Term Guests:

  • Often unfamiliar with exits
  • May ignore or misunderstand alarms
  • Might delay evacuation while gathering belongings
  • Could be under the influence of alcohol (holiday context)

This behavioural difference significantly increases evacuation risk.

Fire Detection and Warning Systems

Class 2 buildings typically require:

  • Smoke alarms within each unit
  • Common area detection (depending on building height and configuration)

Class 3 buildings often require:

  • More comprehensive smoke detection systems
  • Detection connected to a building-wide alarm system
  • Interconnected alarms
  • Enhanced occupant warning systems
  • Emergency lighting and illuminated exit signage in more locations

Short-term accommodation assumes occupants need clearer and more obvious warning systems.

Fire Compartmentation

Apartment buildings rely heavily on:

  • Fire-rated walls and floors between units
  • Fire-rated doors to corridors
  • Protected stairwells

While this is required in both Class 2 and Class 3 buildings, Class 3 buildings may require:

  • Higher levels of monitoring
  • Stricter door compliance
  • More rigorous maintenance
  • Additional protections in corridors

When units are converted informally to short-term rental use, these protections are often not upgraded to reflect the increased risk.

Evacuation Planning and Management

In a long-term residential building:

  • Formal evacuation diagrams may not always be required inside each unit (depending on jurisdiction)
  • Residents learn procedures over time

In a short-term accommodation building:

  • Evacuation diagrams are typically required inside rooms/units
  • Fire safety instructions must be clearly displayed
  • Emergency procedures must be documented
  • Staff management or fire wardens may be required

Airbnb-style use often introduces Class 3 risk without Class 3 management controls.

Fire Load and Usage Patterns

Short-term rental units often have:

  • Higher turnover of occupants
  • Increased use of cooking facilities
  • More luggage and transient storage
  • More frequent parties or gatherings
  • Increased electrical device usage (chargers, power boards)

Higher turnover increases:

  • Accidental cooking fires
  • Misuse of appliances
  • Tampering with smoke alarms
  • Propping open fire doors

The Hidden Risk in Mixed-Use Strata Buildings

Where a Class 2 building has multiple Airbnb units operating within it, several issues can arise:

  • The building was not designed for transient occupants
  • Fire engineering assumptions may no longer reflect actual use
  • Evacuation modelling may have assumed familiar occupants
  • Fire safety management systems may not account for guests

In some cases, widespread short-term letting can alter the effective risk profile of the entire building.

Regulatory and Insurance Implications

Changing the use of a unit from long-term residential to short-term accommodation may:

  • Trigger a change of building classification
  • Require council approval
  • Impact fire safety certification
  • Void or alter insurance coverage
  • Expose owners corporation committees to liability

In Queensland and other states, local planning schemes may also regulate short-term accommodation separately from fire safety requirements.

Risk Management Considerations for Owners and Body Corporates

If short-term rentals are occurring in a residential building, prudent risk management may include:

  • Reviewing the building classification under the NCC
  • Seeking fire engineering advice
  • Confirming smoke alarm compliance within units
  • Ensuring fire doors are compliant and self-closing
  • Reviewing evacuation diagrams and emergency signage
  • Updating building emergency plans
  • Reviewing insurance policies

A proactive review is far preferable to reacting after an incident.

Why Design Intent Matters

Buildings are designed with specific assumptions:

  • How quickly people respond
  • How well they know the layout
  • How evacuation will occur
  • What fire load is expected

When the occupant profile changes from permanent residents to transient guests, those design assumptions may no longer be valid.

This does not automatically mean short-term rentals are unsafe — but it does mean the fire safety strategy should be reassessed.

Conclusion

The difference between a building designed for long-term residential use and one designed for short-term accommodation is not just administrative — it is fundamentally about life safety.

Short-term guests:

  • Are less familiar with the building
  • React differently to emergencies
  • Require clearer warning systems and evacuation guidance

Where residential units are used for Airbnb or similar platforms, building owners and strata committees should ensure that the fire safety measures in place remain appropriate for the actual use of the building.

Failing to recognise the shift in risk can expose occupants, owners, and committees to significant legal and financial consequences.