NSW Laws Just Announced - Airbnb killer in Sydney

Home delivery?

 

'Looks to the future': Airbnb welcomes NSW government's new rules

"The 180-night limit will apply to houses and apartments in Sydney, Newcastle and Wollongong. When the host – either the owner or a tenant – is present the limit does not apply."

Interesting. I can see hosts getting around this by claiming to live in the place (also CGT benefits by living in part of the place and sharing some space) or saying they're away on a long holiday... regardless of whether they actually do or are... This would be quite hard to enforce as I'm sure they would need to be either sure you're definitely not living there AS WELL as within your 180 night cap. The number of days that someone books can be manipulated once they arrive i.e. you give them a discount on arrival to approve an amendment in booking for just one day if they pay in cash and block out the days they are there. Simple. Also, how are you going to determine whether someone is actually on holidays or not? Again expensive to enforce. Maybe a dob-in policy like Tassie?

The 180 night cap is an interesting one and better than what I originally thought (as in you can rent it out to someone for no less than 180 nights i.e. essentially 3 months rental agreement). I however look forward to seeing more details on it.

Be interesting to see what other platforms (for e.g. listing place on gumtree which isn't a specific STR platform) is included into the cap. As someone who have only done this less than a year, I'm starting to get direct queries from repeat domestic guests or referrals (5-10% of all queries) so would be interested to see if they are included. Enforceability regarding repeat customers would be hard and expensive and probably not worth it if the penalty is low.

Definitely is an interesting and uncertain times for hosts!

 

Once again we are being controlled and manipulated by the government however they plz. We are the sheeple

 

Well the neighboring ‘sheeple’ (as you call them) will be very happy since the ‘mandatory code of conduct is in place to address concerns about noise levels, disruptive guests and the impact short-term letting had on shared neighbourhood amenities.’

 

Using a short term letting (STL) platform to sub-let a room or more while the host is still resident in a unit was available for people to top-up incomes, accords with the whole 'experiences' and 'sharing economy' mantra.

The problem, in Strata, has been the Lot Owner who uses STL to derive increased yield for themsleves, while inflicting cost and problems on the rest of their community.

Some owners corporations will be STL friendly, and those Lot Owners will probably do very well, financially, because of the uplift in yield. But for others, the majority opinion from owners corporations and Stratas, which are residential homes as intended in the development approval and/or planning instruments / zoning - where they want to remain places to live and be unaffected by someone's decision to run an STL business from their residential block - it is a fair argument that people should not be able to STL the whole unit.

Many owners corporations have adopted by-laws expressing this view, many more would have done so if the legislators clarified the legal complexities sooner. It is a valid choice: do we want our block to be STL friendly or do we want it to be what it was zoned as - a residential block for owners and 'proper term' (as opposed to Short Term Letting - the collective reference for air bnb, stayz, etc) tenants?

Enforcement is a different issue. The first analysis should be: what are these new rules and what do they seek to achieve.

 

Does this 180 day rule apply to investment property that are free standing houses?. Or does this rule only apply to investment properties that are units in a block of units?

 

Agreed. A few countries are introducing such laws. In thailand it is technically a breach where the lease is less than 30 days.

 

All residential property within greater Sydney whether owner occupied, freestanding or strata (and other forms of title). Freestanding wont be impact by strata rules. One of the benefits of freestanding is that issue of 100% choice and freedom (subject to neighbours, Police and Council of course)

Villa, townhouse and even GFs used with shortstay sites will avoid a load of the issues associated with unfriendly strata properties. The unfriendly stratas will go gunning for owners or lease tennats who claim to stay and who rent. Personally, I would have liked to see a range of opt-in / out-out rules for stratas rather than a ban. Some buildings are very tolerant of owners choices and others are not.

 

Airbnb (only) data here Inside Airbnb: Sydney. Adding data to the debate.

I was stunned how much public data the Govt has at its disposal. The words "entire apartment" may start to become a concern. Data on numbers of nights etc and also matched data for multiple listings also can be farmed.

 

I just read that new laws in Japan has resulted in an 80% decrease in Airbnb properties there.

 

So if you are an owner occupier in a strata building, as long as you don't rent it for more than 180 days the OC can't prevent you from listing it?

 

No.

 

It appears that a distinction will be drawn between letting a room vs letting the whole unit. To the first, the answer may be yes, to the latter the answer will be no.

 

Then snap out of it, Paul, just for a moment.

If you re-read your posts # 3, 8 and 10 you'll have a good understanding of what you have later referred to as "unfriendly stratas" are concerned about, as their "homes", of which they have generally purchased in good faith with a medium to long term residential expectation, and their "peaceful enjoyment of their lot" entitlement, can be impacted by the introduction of short term, and let's call it what it is, holiday lets, into their respective buildings by off-site profit seekers.

And, whilst you have mastered the art of cut and paste, but are still lost in the deciphering of the above-quoted phrase, Strata Committees, Owners Corps, owner occupiers, and long term tenants whom you describe as "rebel whiners", "vigilantes" and a "kangaroo court mob" might actually consider that "democracy" prevails in a strata owners corporation for the best interests of the building.

Anything else, before your boredom returns?

 

I suppose you could say it's a proposal - for now. Don't know what will happen.

 

180 days .... who can be bothered turning it from air bnb to normal rental twice a year. ok sure, you can probably rent furnished in the right area, but still a pain with utilities etc etc. do not like

 

Actually, yes, utilities would be painful. I guess I'd include internet in my name, it's ~$60 a month unlimited. Tenants can arrange electricity. My Sydney one is an easy walk from major universities so my plan (if it is passed and I can't let it short term more than 180 nights a year) is that I'd aim to rent to uni students approx late Feb - Nov and have it as an airbnb the rest of the time.

For people who have leased other people's properties and turned it into a business... not sure what they'll do...

 

Most strata owners will shed the smallest tear for them

 

So I take it you're still annoyed after your own personal issue with a short term lessor at one of your properties?

You sound like it.

 

180days plus ? and a strata that wants short stays gone. In which case the limit is 2 nights unless its owner occupied in which case strata cant do jack it seems other than under normal bylaws. Each night a complaint. $220K max penalty maybe. 5 year ban on short stay rental in the state for the owner/s and any management company.

I dont agree on the strict limits but accept reasons why its needed. I feel for good landlord who has good property with no party tenants. But all it takes is one bad person to stay. Or actually all it takes is two vindictive neighbours to each make a complaint.