Short-term letting restrictions and how they impact you
As most of you would know, short term lettings in strata units and houses were causing a big fuss some years ago. Then, there were the debates (including parliamentary debates) as to whether these should be permitted, prohibited or permitted with conditions. Even now, we hear about the massive out of control Airbnb parties from time to time. Then again, there are the many success stories behind these passive income gems. So, where are we at now?
For NSW, the statutory framework governing short term letting has three main parts being: (i) the strata legislation, (ii) the mandatory code of conduct, and (iii) the planning laws.
Strata legislation for units and apartments
On and from 10 April 2020, the Strata Management Scheme Act 2015 was amended to include a new section 137A. In essence, the owners corporations can make a by-law by way of a special resolution in general meeting to ban short term rental accommodation where the person giving the rental arrangement does not occupy the lot as their principal place of residence. In short, the person granting the short term rental needs to live in the lot. If you (or your strata scheme) want to allow short term rentals, we suggest you to arrange a by-law to be made to expressly allow them, subject of course to conditions.