Short-stay rental operators have won a legal victory amid growing pressure for industry regulation. An apartment owner in the Melbourne suburb of Doncaster, who flouted rules aimed at stopping short-term stays, has been given the all-clear after he challenged the building’s owners corporation in the Victorian Civil and Administrative Tribunal.

Zheng Sheng Lim, who co-owns an apartment in the Imperial building at Sovereign Point Court, Doncaster, challenged rules banning short- term stays. The owners’ corporation had deactivated a security key fobs for the building after accusing the owner of repeated breaches of the rules.

However, after the matter was brought to VCAT the owners corporation admitted special rules it had registered to stop short-term tenancies were “probably invalid”, documents show. VCAT ruled the owners’ corporation did not have the right to deactivate security fobs or restrict tenant access to the building, except in emergencies. Airbnb Australian head of public policy Brent Thomas says the case validated past rulings around the country.