Understanding the changes to short-term rental accommodation in NSW

Learn how the changes affect your property and what options are available to your owners corporation

As of 10 April 2020, changes to the Fair Trading Act 1987 and the Strata Schemes Management Act 2015, mean that strata properties in NSW can now prohibit short-term letting where it is not an owner’s principal place of residence, through making of a by-law.

This means that for someone living in a strata property as their principal place of residence, they will still be able to rent their home or a room whilst they are living there or temporarily go on holidays.

This new regulatory framework has been designed to find balance in allowing communities to continue to gain from the economic benefits of the short-term rental accommodation industry (STRA), which has seen a rapid expansion in recent years through platforms such as Stayz and Airbnb, whilst minimising any negative impacts on neighbours through problematic behaviour.

The changes will also see the introduction of a mandatory code of conduct and a complaints/enforcement system which applies to anyone involved in providing or using short-term letting. This framework is currently being drafted. It is anticipated that where hosts or guests commit two breaches of the code of conduct within two years, they will be banned for five years. This will help regulate any anti-social behavior which interferes with the peaceful enjoyment of a neighbour’s home.

Common misconception

There is a common misconception that Airbnb and short-term letting only effects luxury apartment buildings in main tourist areas

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Young travel groups

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Backpackers

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Celebration groups

Short-term accommodation letting is popular amongst young groups of travellers and backpackers as a cost effective accommodation option due to the ability to let low cost apartments outside of the expensive tourist areas.

What can your owners corporation do?

These changes mean that your owners corporation can now adopt a new by-law banning short-term rental accommodation in certain circumstances. To successfully do this, the owners corporation will need to pass a special resolution at a general meeting of all owners (meaning no more than 25% of votes can be against the motion) agreeing to the making of the new by-law. From here, the new by-law needs to be registered with NSW Land Registry Services within six months.

How we can help?

Kemps Petersons Legal (KPL) form part of our PICA Group family and are specialists in strata. They provide legal services to our community living customers by providing personally tailored and watertight by-laws to minimise risk and to aid in the smooth running of a harmonious community. They will also take care of the consolidation and registration process ensuring a comprehensive experience.

It is important that a strata specialist is used to draft your by-laws, taking into consideration your current registered by-laws, as well as your individual needs and specifications. It also ensures that your by-law is watertight and that your owners corporation are protected by their professional indemnity for the services undertaken. KPL is ready and available to help.

Save on your by-law drafting

PICA Group privilege customer offer

KPL will provide short-term letting by-laws for our PICA Group customers for a discounted fixed fee of $200 plus GST and disbursements (NSW only offer).

 

Drafting the by-law and general meeting motion
$200
Plus GST and disbursements

Non-customer offer

KPL will provide short-term letting by-laws for non-PICA Group customers for a discounted fixed fee of $400 plus GST and disbursements (NSW only offer).

 

Drafting the by-law and general meeting motion
$400
Plus GST and disbursements

Get a free quote today

If you are an existing customer of PICA Group, please contact your strata manager or simply fill out the form on the right hand side of this page and we’ll be in touch soon.

 

Get a free quote today

I would like to enquire about your short-term letting by-law and related services.