NSW Short-Term Rental Accommodation Update

23 August 19

NSW SHORT-TERM RENTAL ACCOMMODATION UPDATE

The NSW Government has now issued its new regulatory framework discussion paper and called for final feedback.


According to Government sources, the Short-term Rental Accommodation (STRA) industry in Australia was estimated to be worth $31.3 billion nationally in 2016 and NSW’s share equalled approximately 50% of that figure.


In June 2018, the NSW Government announced its proposed policy for STRA in NSW including:

  • a state-wide planning instrument permitting the use of dwellings for STRA under certain conditions, including limits on the days the activity can take place;
  • a mandatory Code of Conduct that will apply to online booking platforms, letting agents, hosts and guests; and
  • clarification that strata schemes can adopt a by-law that prohibits STRA where a lot is not a host’s principal place of residence. Any such by-law will need to be adopted by special resolution, with 75% of votes supporting the proposal at a general meeting.

 

The NSW Government’s stated policy for STRA seeks to enable local economies to continue to benefit from STRA, while protecting communities from anti-social behaviour, such as increased noise for neighbours.


1. Planning Instruments


At present, STRA is regulated differently in different local government areas across NSW. The NSW Government policy for STRA seeks to provide State-wide consistency in the definition and permissibility of STRA. The proposed planning framework includes new ‘exempt’ and ‘complying’ approval pathways that enable STRA within day limits:

  • where the host is present, STRA is ‘exempt development’ for 365 days per calendar year;
  • where the host is not present, and the site is not on bushfire prone land or a flood control lot, STRA is ‘exempt development’ for:

           - 180 days in Greater Sydney;
           - 365 days in regional areas; except where a council varies this to no lower than 180 days;
           - Where the host is not present, and the booking is for 21 or more consecutive days, the booking will not count towards the above day thresholds.

 

Already, some regional councils have nominated different day limits for un-hosted STRA – eg:

  • Ballina Shire – 180 days;
  • Lake Macquarie – 180 days.

 

Regional councils can continue to nominate reductions in un-hosted STRA permissibility to no lower than 180 days.


Proposed safety requirements applying to dwellings used for STRA


The Government also intends to set certain minimum safety requirements for STRA properties as follows:

Dwelling type Recommended standard
All dwellings  Installation of a lighting system in hallways that is activated by the smoke alarm system. 
Dwellings in multi-unit buildings only  Entry doors should be openable from inside the dwelling without a key.
Installation of a self-closing device and smoke seals to all edges of the door, if the door opens onto a shared corridor and entrance doorway.
Installation of a fire extinguisher and fire blanket in the kitchen.
Making an Evacuation Plan, displaying ‘evacuation signage’ and familiarising guests with exit system. 
Standalone dwellings only  Installation of heat alarms in single dwellings which are located above a garage.  


2. Code of Conduct


The principal objectives of the proposed Code are to:

(a) set out the rights and obligations of STRA industry participants;
(b) provide for resolution of disputes and complaints concerning the conduct of STRA industry participants;
(c) outline the compliance and enforcement approach that applies for contraventions of the Code by STRA industry participants; and
(d) facilitate the oversight of the STRA industry.


Hosts’ specific obligations relate to:

  • representing their STRA property accurately to guests;
  • holding an appropriate level of public liability insurance;
  • providing guests with appropriate contact information for the host or other emergency service providers;
  • providing neighbours, including an owners corporation where relevant, with information such as the host’s contact details; and
  • complying with any restrictions on participating in the STRA industry imposed on them due to listings on the exclusion register.

 

Guests’ specific obligations relate to:

  • their behaviour and the behaviour of any visitors, including ensuring they do not act in a way that unreasonably impacts on STRA properties’ neighbours;
  • taking reasonable care of the STRA premises or host’s property at the premises;
  • complying with any restrictions on participating in the STRA industry imposed on them where they are listed on the exclusion register.

 

Proposed industry-led STRA property register


The Government’s view is that the register has the potential to greatly strengthen responses to complaints about STRA. This is because a register could provide information about which properties are used for STRA and the number of days that properties are let.


Information on the register could facilitate compliance with the STRA regulatory framework. For example:

  • Local councils could use the information to enforce compliance with day thresholds;
  • Industry participants, such as booking platforms, could access the information to ensure they are only advertising registered STRA properties that are not listed on the exclusion register, and which are within the permitted maximum number of days.


Timing


After the current final round of consultation closes, the departments will analyse all feedback and make any necessary refinement to the policy. Thereafter, the policy will go to the Governor for approval.

 

Article Written by Col Myers of Small Myers Hughes Lawyers
Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice. 

Additional Documents

Click here to download: 2019_09_Sep___NSW_Short_Term_Rental_Accommodation_Update.pdf

Share

Contact Us Now

Phone:+ 61 7 5552 6666
Fax:+ 61 7 5528 0955
Email:info@smh.net.au
Address:Level 2, 17 Welch St Southport, Qld, 4215
Postal:PO Box 1876
Southport 4215

Search

Search*
Search

Most Popular Articles

Management Rights News

Number of news items returned: 1 to 15 records of 91

The Different Types of Caretaking Agreements

17 November 2014

(14896 views)

 Essentially, there are three types of caretaking agreements in the marketplace: “Do” agreements; “Supervisory” agreements; Hybrid “Do” and “Supervisory” agreements. “Do” Agreements A “Do” agreement ...

Unit Entitlement in NSW

11 February 2013

(9446 views)

The issue of unit entitlement was recently looked at again as part of the Department of Fair Trading’s Discussion Paper ...

CARETAKING AND LETTING AGREEMENT ESSENTIALS PART 5: DISPUTE RESOLUTION AND TERMINATION

16 July 2015

(7873 views)

This month, we continue our examination of various clauses within caretaking and letting agreements and the important considerations to be ...

Is it Time to Change the Management Rights Model?

13 May 2013

(7519 views)

I think the time is right for the management rights industry to explore the creation of a new model. I ...

What Managers Need to know about the NSW Child Window Safety Devices Act 2013

17 January 2014

(7365 views)

Resident building managers have general obligations under their Caretaking Agreements to assist Owners Corporations with building and compliance issues. Managers ...

Be Careful with your Proxies!

03 October 2013

(5945 views)

In June this year, I wrote an article headed “Proxy Farming”, which set out the relevant restrictions on caretakers using ...

The Law Relating to Management Rights in Queensland

14 June 2010

(5770 views)

This article looks at the legislation in Queensland dealing with the constraints and obligations imposed on developers whilst they control ...

Duty Bound or Duty Free - Do you know what Your Duties Are?

23 September 2013

(5282 views)

The day-to-day care and maintenance of your resort facilities and communal areas is essential to its ongoing performance and success. ...

Caretaking and Letting Agreement Essentials Part 1

03 September 2014

(4968 views)

We regularly prepare caretaking and letting agreements for new developments. However, it has become increasingly common for us to be ...

Owners Corporation Insurance - How do we Stop the Spiraling Costs?

12 August 2013

(4967 views)

In NSW, all strata schemes are required to be insured for the full replacement value, as well as public liability ...

For Your Eyes Only!

15 April 2013

(4950 views)

Information is a commodity and for many, information is power. As you would most likely know from personal experience, the right ...

Proxy Farming

10 June 2013

(4764 views)

It is often stated that Strata and Community Schemes represent the “fourth tier of Government” and, as such, voting (either ...

"Legal Action", All those in Favour say "Why"

15 July 2013

(4601 views)

I was recently involved in a New South Wales matter where an Executive Committee had received extensive legal advice from ...

Manged Investment Schemes

15 July 2008

(4288 views)

You may have heard the terms ‘MIA’ or ‘Managed Investments Scheme’ and wondered what it’s all about. If you operate ...

Not Getting the Fundamentals Right

15 October 2013

(4258 views)

A recent decision of the NSW Consumer, Trader and Tenancy Tribunal (CTTT) has highlighted the importance of ensuring that the ...