Airbnb host Louise Drolz at her leafy Greenwich home. Credit:Kirk Gilmour "The sharing economy is booming in NSW as more people are finding creative ways to turn unused things into income," said the Liberal MP for Oatley, Mark Coure, chairman of parliament's environment and planning committee. "This report is about giving certainty. Not everyone is a winner, but we have tried to get the balance right for consumers, home owners and the wider community." The report will be tabled in NSW Parliament on Wednesday, and if adopted by the Baird government, would see home sharing regulated for the first time across NSW. Only 12 councils currently have rules covering home sharing and many, including the City of Sydney and Waverley, ban Airbnb hosting in residential areas and act on complaints. This is despite Airbnb listing 4500 hosts in the City of Sydney.

Ronice Hammond sold her waterview Balmain property fearing a ban on Airbnb hosts in her strata building. "Most houses are breaking the law. We want to see a standard applied across the state," said Mr Coure. Hosts renting out their principal place of residence won't need to seek council permission, the report will recommend. Investors who rent out an empty property for short stays will need to abide by a code of conduct, and seek council approval as a "complying development", which is faster than seeking development approval. But to differentiate commercial operators from families simply generating extra income from a holiday house, the government will be asked to define a threshold for when an empty property may also be exempt from approval.

Queensland-style "party house" provisions will be recommended, which allow a council to designate a property hosting regular hens or bucks nights and raves for stricter rules and penalties, and restrict party houses to particular precincts. The inquiry was sparked by the Greens MP for Balmain, Jamie Parker, calling for clearer rules, after Airbnb listings doubled in 12 months and Sydney ranked in the top 10 Airbnb destinations. Mr Parker said on Saturday: "The government must act on these recommendations to end the conflict and provide the direction that has been sorely lacking." "Crucially, these recommendations empower strata committees and will protect neighbours from the constant anti-social behaviour of 'party houses'." Interior designer Ronice Hammond is upset she was forced to sell a waterview apartment in Balmain after the body corporate threatened to pass a by-law banning Airbnb hosts.

Mrs Hammond and her husband lived in the four-bedroom property for two years before moving out and using Airbnb to generate income. "Families could stay together. They were in with the locals, rather than staying in the CBD. They saw the real Australia, could go to the parks, and the beautiful local restaurants and pubs up the road. They loved it," she said. "If I had known there was no way they could put a by-law in place, I would have kept it. But we felt we had no choice. Once the clarity comes through, we would do it again," she said. Louise Drolz lets out part of her four-bedroom Greenwich house on Sydney's lower north shore after her adult sons left home. "If houses aren't lived in they become furniture graveyards," she says. Instead of downsizing to a smaller home, the two unused bedrooms have been converted to self-contained accommodation and generate income for the maintenance costs of her garden and swimming pool.

It is mostly Chinese families who come to stay, who love a backyard barbecue, or groups of young people on weekends. "There has been some petty theft, and I once had to kick someone out," she says. Mostly it works well. "I read them the riot act before they step over the threshold," explains Ms Drolz. "I'm a bit of a tyrant. It makes a difference that I am here physically. I pity the poor neighbour that has to live next door to a party house."