Landlords on the NSW Mid North Coast are making double on short-term rentals than long-term leases. And councils pleading with them to rent to locals are hitting a bizarre wall.

In Byron Bay, one in six properties is listed on Airbnb. In some coastal towns, landlords won't shift to long-term rentals even when asked directly, because the couch is in the way.

Victoria has a 7.5% tax and listings have dropped 0.5%.

Is that a proper solution to the problem?

The National Account's Archie Milligan has the rundown:

Image credit: MidCoast Council.