Renting new Melb apartment on AirBnB & body corporate issues

Discussion in 'Airbnb & Short Term Letting' started by Bridget Heathcote, 29th Apr, 2017.

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  1. Bridget Heathcote

    Bridget Heathcote Member

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    Hi All, my husband and I are thinking about buying an IP in Melbourne inner city to stay at while we are in town, and also renting out on AirBnB to cover expenses. Does anyone know how this goes with body corporates? I have heard that they don't like it and we might be forced to stop.
    Any advise would be appreciated.
     
  2. teetotal

    teetotal Well-Known Member

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    Each body corporate will have their own by-laws. So you'll need to check the by-laws or strata minutes before you purchase.
    These things can potentially highlight the areas of your concern.
    However you also need to be mindful that these by-laws can be implemented/changed later on after your purchase, using majority votes. So there's always such a risk.
    Same goes with councils, some of them may have restrictions on operating short term rentals in your home.
    Do your due diligence in all areas and research carefully.

    Cheers
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hiya

    The only way to know for sure is by checking with the particular body corp that manages the complex you're interested in buying into.

    Cheers

    Jamie
     
  4. Bridget Heathcote

    Bridget Heathcote Member

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    Thanks Amar and Jamie,
    Thinking about it, it really does seem like it's too difficult. I would also have to manage remotely.
    It's going into the too hard basket for now.
     
  5. teetotal

    teetotal Well-Known Member

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    Hi Bridget,

    Try to think of alternatives and think of how can you make it happen.
    For ex. - are you able to pick a non-strata property ? or a property where councils have no objections ?
    - If no, Are you able to search for properties where owners are already doing it ? That can provide an assurance if not a guarantee.


    There are many ways to climb a tree and there are many trees to climb too !! :cool:
     
  6. Bridget Heathcote

    Bridget Heathcote Member

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    Very good advise, thank you, I will keep that in mind going forward.
     
  7. melbournian

    melbournian Well-Known Member

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    you only have to look in the s32 to work out if they allow it or not.

    in fact - the biggest apartment developer in melbourne has its owners corporation arm (which manages all its building) and also has it's own arm of short term leasing so it is allowed as they have short term leasing across all their buildings.
     
  8. Bridget Heathcote

    Bridget Heathcote Member

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    Hey thanks Melbournian, this is very helpful.
     
  9. Bridget Heathcote

    Bridget Heathcote Member

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    Another question: An older building vs new build?

    I have heard a horror story about an old apartment building getting concrete cancer and costing hundreds of thousands of dollars to repair.

    On the other hand new builds are more expensive.
     
  10. jodes

    jodes Well-Known Member

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    In addition to reviewing the S32, I always do a search on airbnb by searching the surrounding area on the map and doing googles of the name of the apartment building and airbnb. For our apartment when doing this, I found out that two apartments were listed (including the one we purchased) which gave me comfort it would be okay.

    Regarding new vs old build, I would look for super old- eg art deco. They aren't making them anymore, and they are generally solidly built.
     
  11. teetotal

    teetotal Well-Known Member

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    Concrete cancer is mostly prevalent in properties next to sea.
    Also looking into neighbourhood properties will provide you an indication. Google street view might be handy.
     
  12. turk

    turk Well-Known Member

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    Hi Bridget

    You are receiving advice on investigating Body Corporation regulations, firstly Body Corporations no longer exist they are now Owners Corporations.

    More importantly for your plans this VCAT decision is more relevant than Owners Corporation bylaws.

    LITIGATION ALERT:

    VCAT rules Owners Corporations do not have power to prohibit short-term letting



    VCAT rules Owners Corporations do not have power to prohibit short-term letting

    Bear in mind his could change in the future.
     
    teetotal likes this.
  13. Bridget Heathcote

    Bridget Heathcote Member

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    Thank you, this is very helpful information.
     

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