Over the past four years, David Sharp has opened his Cottesloe home to hundreds of guests, renting out two units at the back of his block.

"You meet so many interesting people," said the 60-year-old professional handyman, who was inspired to join Airbnb after trying it out on a trip to New York.

"We've had playwrights, people to do with the Sculpture by the Sea staying here, actors."

Cottesloe has the fourth-highest number of Airbnb listings in greater Perth, according to US-based data analytics firm AirDNA.

The wealthy beachside suburb is in the process of drafting a new short-stay accommodation policy. It is one of a handful of councils which have either recently updated their short-term leasing rules or are in the process of doing so, amid continuing growth in Airbnb listings.

Mr Sharp has nominated to be on the committee that will draft the new rules.

"I'd just like to make sure that Airbnb operators are properly represented," Mr Sharp said.

"I'd like to think that people understand that you really want to see quality accommodation being maintained. We're all for the idea of having regulations.

"If there's any problems, we need a mechanism where people who don't manage their Airbnbs properly can be put out of it."

People 'demanding controls', WALGA says

At least three councils are preparing to draft new policies on short-term accommodation, after the WA Local Government Association (WALGA) released a discussion paper on the issue in July last year.

The City of South Perth has released its newly-drafted plan for public comment, while a third council, Vincent, will review its policy after a new town planning scheme is gazetted later this year.

South Perth is one council bringing in a new policy on short-term accommodation. ( 720 ABC Perth: Emma Wynne )

"We need to acknowledge that Airbnb has taken off massively," WALGA president Lynne Craigie said, adding that regulation at a local government level was "very patchy".

"We need to look at how they sit within our communities because sometimes neighbours aren't happy that the place next door might be being used as an Airbnb," she said.

"People are demanding some controls put over this, so that they know where they stand.

At this stage, if they aren't registered, we don't know that it's any different from any other house — and then you can have the argument 'do we need to know?'

"But it is good to know they are a commercial venture and we need to know what is going on in our communities."

However, having a formal policy on short-term leasing may not give councils the full picture on where Airbnb is operating.

In the Town of Victoria Park, there are two bed-and-breakfasts and 15 short-term accommodation providers registered with the council.

Yet there are 95 active rentals in Victoria Park listed on Airbnb, according to more figures from AirDNA.

"The town is aware that there are a number of properties being used for short-term accommodation without council approval, which is a breach of the town planning scheme," chief executive Anthony Vuleta said in a statement.

In the past two years, only three property owners have been prosecuted for breaches of the scheme.

Strata companies call 'daily' for advice: lawyer

There are also doubts about the authority of local governments to regulate land use when it comes to strata title.

Lawyer Mark Atkinson represented the strata company of Ceresa River Apartments in a three-year court battle that reached the Supreme Court — the only Airbnb case in WA to do so.

The case concluded in June last year with the Court of Appeal ruling against the property owner, who had sought to lease his apartment out on Airbnb.

The court found that even if an owner had received planning approval for short-stay letting, a strata company could effectively override that approval by mandating the property be used by residents only.

Mr Atkinson said since the decision, he had received phone calls from property owners and strata companies "just about every work day" to replicate the Rivervale apartments' bylaws.

"To date, my response has been to encourage these people to be a little cautious," he said.

"It remains very difficult to enforce this sort of a bylaw. The Court of Appeal held that the bylaw meant that the lots have to be used as a settled or usual abode of someone.

"Now, trying to work out whether 'X' person who comes into an apartment is using it as their settled or usual abode is very difficult.

"The issue is not really about the use, it's about the consequences of the use … the noise, the nuisance, the damage to common property. If you can target the rules to those sorts of things, you're more likely to get a successful outcome."

Mr Atkinson was doubtful as to whether council policies would be effective in regulating Airbnb.

"It comes down to dollars. Even if the local governments improve, amend their local planning schemes, they've still got to have the money to enforce those schemes, and currently there's just not a lot of money around," he said.

Prices falling as listings grow

The push by councils to regulate Airbnb comes at a time when rising competition is putting downward pressure on prices.

A surge in Airbnb listings across Perth has coincided with easing prices in some areas. ( Supplied: Airbnb )

AirDNA data shows total home listings in greater Perth have risen since their previous peak of 2,606 properties in May last year, to 3,249 in January.

However, prices have eased in some areas, particularly at the top end of the market.

In Cottesloe, Mr Sharp said he had witnessed a 15 to 20 per cent drop in the average price charged per night this summer.

"I was starting to get a few gaps in my summer bookings heading into January. A lot of bookings have been last minute," he said.

"I think people are sort of getting the idea that there's a lot of properties in the market."

As more properties are listed, calls for more consistent regulations are growing louder.

WALGA is now pushing for the State Government to put some overarching rules in place, which local councils can add to.

"We don't need to inspect [properties] weekly or anything like that, I'm not suggesting that for one minute, but [we need] just to have oversight of what is going on within our communities," Ms Craigie said.

The WA Planning Commission is currently reviewing its tourism policies — which will include rules for short stay accommodation — and will release the results later this year.