Changes to Airbnb and short-term rental accommodation for strata properties in NSW

With online booking services such as Airbnb and Stayz becoming the now — not so new — norm, the NSW Government has introduced new regulation to manage the short-term rental accommodation industry (STRA).

The new regulations have been designed to allow local communities to continue to gain from the economic benefits of STRA, but also minimise negative impacts on neighbours and others affected by short-term letting.

As of 10 April 2020, through changes to the Fair Trading Act 1987 and Strata Schemes Management Act 2015, NSW strata properties will now, via by-laws, be able to prohibit short-term letting.

 

The changes impact NSW’s strata properties by:

  • Allowing owners corporations to adopt a by-law – by special resolution, to ban short-term letting if the property is not the owner’s principal place of residence.
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These changes will prevail over any inconsistent development consent conditions under the Environmental Planning and Assessment Act 1979 (NSW). It will also not permit STRA arrangements that are prohibited by development consent conditions under the Environmental Planning and Assessment Act 1979 (NSW).

Short-term letting by-laws offer

Laws to govern NSW’s STRA are as follows:

   Greater Sydney  Outside Greater Sydney 
Owner is occupying lot Lot may be used for short-term letting up to 365 days per calendar year Lot may be used for short-term letting up to 365 days per calendar year
Owner is not occupying lot Lot use for short-term letting capped to 180 days per calendar year 

 

Subject to local council planning laws, lot use for short-term letting may be capped at 180 days per calendar year

What does this mean for owners and community living properties in NSW?

Changes to restricting short-term letting via by-laws, means community living properties, will need to adopt a new by-law to ban short-term accommodation. To successfully do this, owners corporations will need to vote via special resolution and have a 75% majority. From here, the new by-law will need to be registered with NSW Land Registry Services.

By-laws are the cornerstone to successful community living, requiring accurate drafting, consolidating and registering. To make sure your property has watertight by-laws that are up to date, drafted, consolidated and registered properly, visit Kemps Petersons Legal.

Kemps Petersons Legal are part of the PICA Group family and focus on making community living easier by helping people get the basics of strata management right. As the legal backbone to Australia’s leading strata companies, their industry knowledge means your property will be set up for easy and harmonious community living through accurate by-laws.

Short-term letting by-laws offer

For more information, visit Fair Trading’s New short-term holiday letting regulations or the Department of Planning, Industry and Environment’s page on short-term rental accommodation.  You can also keep up-to-date with legislation updates by visiting our website.

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