Short-term rental platforms like Airbnb can create issues in strata communities, which is why the NSW is cracking down with a series of new reforms.
An owners corporation’s ability to regulate Airbnb has long been an issue in NSW strata schemes. While short-term letting can help investors earn a rental income from an unused unit, guests can create problems for other residents and the building itself.
To combat this, the government is stepping in with what Better Regulation Minister Matt Kean is calling, “the toughest laws in the world to crack down on bad behaviour” in the short-term letting industry. Here’s what you need to know.
A 180 day per year cap within Sydney
In the next few months, new planning laws will enact a 180-day cap on Airbnb-style listings in greater Sydney when hosts are away. Throughout the rest of the state, there will be no imposed caps, although councils will have the power to create their own (no lower than 180 days).
More power for owners corporations
Under the reforms, owners corporations will also be allowed to pass by-laws banning short-term letting. This is a major shift in the state, although strata committees will not have power to prevent owner-occupier listings where title owners rent out individual rooms within their units.
The Airbnb Code of Conduct
To operate in the state, Airbnb and similar operators will be required to adhere to a code of conduct and share data with the NSW government. Companies that breach the code of conduct will face hefty fines, up to $1.1 million.