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The new Airbnb

7/9/2018

New ‘Airbnb’ legislation is on its way through State Parliament. It’s an attempt to deal with problems with short-term lets in apartment blocks, and balance the needs of short-stay hosts and their guests, with the rights of other residents in the block.

Owners corporations (body corporates) can now pass by-laws banning short stay letting in investment units, although a 75% vote is required. But it’s a different story for unit owners who rent out their own home - their principal place of residence.

Owners corporations have no power to ban short-stay rentals of a unit owner's own home. There's no restrictions at all if the host is still living there and just renting out a few rooms; but new Environmental Planning Laws will limit the time the entire unit - host not there - can be rented out to 180 days a year.

New ’Two strikes and you’re out’ laws are meant to protect other apartment owners from anti-social behaviour by short term renters. These are yet to be tested.

A short-stay rental usually means anything less than 30 days, with Airbnb and Stayz dominating the market.

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Sue Spradbrow

17/10/2018 02:52:51 pm

Will these new rules override the R1 Residential classification for Manly area?? I am dealing with an owner in our block of 4 on the eastern hill constantly renting out a part of his unit on Air B&B. despite it being in R1 block. When notified by council to cease commercial operations the owners have ignored direction saying new legislation is coming which will over ride council rules. I feel there should be exceptions for high density tourist areas such as Manly, Bondi etc.

Candy Bingham

23/10/2018 04:28:23 pm

Hi Sue

Have now got a response back from Council staff. Here is the latest on the legislation:

On 5 June 2018, the NSW Government announced a new framework for short term holiday letting including state-wide planning controls and a mandatory Code of Conduct
for online accommodation platforms, letting agents, hosts and guests.

The framework will be implemented through amendments to Council’s Local Environmental Plans (LEPs), and strata and Fair Trading Legislation, and is expected to commence in 2019.

The Department of Planning and Environment released an “Explanation of Intended Effect” (EIE) for the proposed planning changes in October 2018 and Council has until
16 November 2018 to provide comment.

Council has sought an extension of time to
provide a submission so that the matter can be considered at a Council meeting, but has not yet received a response to that request.

The EIE provides that the letting of dwellings where the host is present on-site overnight is “exempt” development year round and does not require development consent from Council or the approval of any other body.

Where the host is not present, the use is still ”exempt” but the period of letting will be restricted to 180 days a year (in
Greater Sydney).

The Strata legislation will be amended to allow an Owners’ Corporation (by a 75% majority vote) to make a by-law that prohibits the use of a lot for short term holiday letting, but only where the lot is not the principal place of residence of the owner or tenant.

Dwellings in multi-unit buildings will be required to incorporate additional fire safety measures.

The EIE also proposes that short term holiday letting for properties on bushfire prone land will be made “complying” development” and that certification will be required to the
effect that the land has a “Bushfire Attack Level” (BAL) of no more than 29 risk rating.

The use of land with a BAL exceeding 29 risk rating will require development consent.

The full EIE and Frequently Asked Questions can be viewed at the following link:

http://www.planning.nsw.gov.au/Policy-and-Legislation/Under-review-and-new-Policy-
and-Legislation/Short-term-holiday-letting

Staff are currently preparing a submission to respond to the EIE. This will be reported

17/10/2018 04:14:24 pm

Good question Sue. Let me find out and I'll get back to you

The new Airbnb

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