The council issued a show cause notice in September last year to the building's body corporate for breaching short-term letting restrictions by acting as an unapproved hotel.
Direct Rentals has applied with the council to turn 23 units in the 72-unit building into short-term accommodation.
However in a letter dated February 12, the council advised that the application had not been properly made and required written consent of the body corporate.
Direct Rentals director Adam Thomas said his company's town planner had requested and been granted a 20-day extension.
He said the extension was to allow the council to consider the reply tendered by Direct Hotels last Thursday.