Changes to NSW strata laws allowing owners corporations to manage short-term rental accommodation have given fresh hope to the hotel sector that further regulation is on its way.

As of April 10, short-term rental accommodation arrangements of 3 months or less are not agreements covered by the residential tenancy framework, and owners corporations are now able to adopt by-laws that limit short-term rental accommodation in their strata scheme.

Tourism Accommodation Australia NSW has led the way in making strong advocacy efforts for the industry in relation to the NSW Government’s Code of Conduct for the Short-Term Rental Accommodation Industry.

NSW changes to short-term accommodation - At a glance: 

• Owners corporations are now able to adopt by-laws that limit short-term rental accommodation in their strata scheme, by not allowing it in lots that are not the host’s principal place of residence. This means if someone lives in a strata property as their principal place of residence, they will still be able to rent out their home or rooms while they live there, or temporarily go on holidays.
• Residential tenancy laws have been changed to clarify that from 10 April 2020, short-term rental accommodation arrangements of 3 months or less are not agreements covered by the residential tenancy framework.

TAA NSW CEO Michael Johnson said the Code - expected to be released later this year - will finally introduce obligations for hosts, guests, on-line booking platforms and letting agents, as well as a complaints process for breaches.

“While the Code has been delayed, it’s been pleasing to see amendments to the Fair Trading Act 1987, Strata Schemes Management Act 2015 and the Residential Tenancies Act 2010 recently commence,” he said.

“Owners’ corporations in NSW will now be able to pass by-laws prohibiting short-term rental accommodation within their schemes (in lots which are not the principal place of residence of the host). Further, short-term rental accommodation arrangements of three months or less will not be regulated under the residential tenancies laws. We welcome these moves.

“TAA thanks the NSW government for the amendments – particularly at this difficult time for our sector.

Mr Johnson said the new code of conduct, registration and planning laws would assist in the establishment of a regulated short-term rental accommodation environment that "actually complements the embattled accommodation sector as opposed to putting jobs at risk and disrupting residential areas".

“We look forward to changes in planning laws including registration and a new state-wide definition of short-term rental accommodation, as well as new ‘exempt’ and ‘complying’ approval pathways which allow short-term rental accommodation within day limits," he said.

Click here to find out more about the NSW changes to short-term accommodation.

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