JC – notwithstanding advisory notations on the prescribed Proxy Form the relevant section of the NSW Strata Schemes Management Act is as follows:
(7A) Other limits on exercise of proxy – A vote by a proxy who is a caretaker, an on-site residential property manager, or a strata managing agent is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.
So as Jimmy advised, the activities of a local real estate agent who manages the short-term letting of some Units in your Plan is not captured by the provisions of Clause 7A (above), that relates to an on-site property manager who occupies part of the common property (e.g. a desk in the foyer) and who is engaged under a formal agreement by the Owners Corporation (O/C), not by its individual Owners.
That said, the submission by the O/C of a Development Application to the local Council would not be approved unless its Local Environment Plan enabled short-term letting to be permitted, and if as you seem to suggest that permission could be granted, then in addition to you and like-minded Owners immediately initiating the actions that Jimmy suggested, your O/C could still vote to Register a Special By-Law that among other things could prescribe how short-term lets must be “managed”, such as by restricting the numbers of occupants in Units, on-site parking, times of arrivals/departures, security access, and any number of similar provisions that, whilst not preventing short-term lets in contravention a Council consent, could well serve to actively discourage (if you get my drift) that type of occupancy.
You’ll need 75% of those Owners voting at a General Meeting (including by proxy) to pass such a Special By-Law, so best get started with lobbying.