Airbnb & Short-Stay Rentals on the Mornington Peninsula: What Homeowners Need to Know in 2026

The Mornington Peninsula is a holiday hotspot — and that means short-stay rentals (Airbnb-style stays) come up a lot in conversations with homeowners, buyers, and neighbours.

If you’re thinking of hosting, selling a home that’s been used as a short-stay, or buying in a holiday-heavy pocket (Mornington, Mount Martha, Dromana, Rosebud, Rye, Sorrento and beyond), here’s the practical “what matters” overview.

1) What counts as “short-stay” locally?

The Shire’s local law defines short stay rental accommodation as a stay of no more than 30 consecutive days (one month) in a dwelling for commercial gain.

(Hotels/motels and some other accommodation types are treated differently — this blog is about typical “house/holiday home” style short stays.)

2) The big one: you need to register (and renew)

On the Mornington Peninsula, short-stay rentals are regulated under the Short Stay Rental Accommodation Local Law 2022, and owners are required to register the property with Council each year. (Mornington Peninsula Shire)

What owners must do (in plain English)

Council’s guidance includes requirements to: (Mornington Peninsula Shire)

• Register the property with Council (and renew annually)
• Nominate a Designated Contact Person who can respond to issues within 2 hours, day or night
• Provide the designated contact details in writing to adjoining neighbours (including across the road)
• Make sure guests follow the Code of Conduct
• Provide adequate off-street parking and garbage bins
• Display the Council-issued registration number on online listings/advertising

Why this matters: it’s not just “set and forget”. The rules place responsibility for guest behaviour back on the owner.

3) What if you’re a neighbour dealing with issues?

Council’s guidance is effectively:

1. Call the Designated Contact first (they’re required to respond within two hours). (Mornington Peninsula Shire)
2. If issues are repeated/serious, report it to Council. Council notes it may cancel a registration in cases of repeated serious issues. (Mornington Peninsula Shire)
3. For threatening behaviour or big parties, call police (000). (Mornington Peninsula Shire)

4) The Victorian short-stay levy (this changed recently)

Separate to Council registration, Victoria introduced the Short Stay Levy Act 2024, which started on 1 January 2025 (Council also notes it doesn’t administer/enforce the levy). (Mornington Peninsula Shire)

The State Revenue Office explains the levy is 7.5% of the total booking fee for each short stay, and that the booking fee includes things like nightly rate, cleaning fees and GST (with some exclusions like credit card surcharges). (State Revenue Office)

Practical takeaway: if you host (or plan to), make sure you understand who collects/remits the levy in your setup (platform vs direct bookings) and how it’s calculated. (State Revenue Office)

5) If you’re buying on the Peninsula: a quick “holiday rental” checklist

If you’re downsizing and chasing peace, parking, and routine — this matters.

Before you buy, ask these questions:

• Is the street/area holiday-rental heavy? (Ask the agent; also check online platforms for nearby listings.)
• Where will visitors park in peak season? Off-street parking requirements exist for hosts, but overflow still happens. (Mornington Peninsula Shire)
• What’s the noise pattern like on weekends and school holidays?
• If the property itself has been a short-stay: is it currently registered, and is there a designated contact arrangement in place? (Mornington Peninsula Shire)
• Are you okay with a “summer neighbourhood”? Some pockets feel very different in January than they do in May.

6) If you’re selling: why this topic helps your campaign

Even if your home has never been a short-stay rental, buyers are thinking about it:

• Some love the idea of income potential.
• Others (especially downsizers) are wary of noise, parking and turnover.

A short, clear explanation in your marketing or buyer conversations — focused on local expectations and liveability — can reduce surprises and build confidence.