22
Mar
2023

It is important for purchasers to first find out about the property through the building & pest report before signing the contract. However, if you are planning to buy a property and use it for Airbnb purposes, then in addition to the building & pest report, you will need to make further enquiries to find out if the particular property can be used as Airbnb and what policies you need to comply with.

In New South Wales (NSW), the policy regarding short-term rentals varies depending on the type of accommodation and the local government area in which it is located.

For online booking platforms such as Airbnb and Stayz, the NSW government has introduced a range of regulations aimed at managing the impact of these properties on local communities. Generally, there are three parts to the NSW Government short-term rentals policy: (1) Strata By-Laws, (2) the Code of Conduct for the Short-term Rental Accommodation Industry, and (3) local planning policies.

Strata by-laws can have a significant impact on short-term rentals. The model by-laws for strata schemes in NSW allow for short-term rentals, but they also give strata committees the power to make additional rules or prohibit short-term rentals altogether. This means that strata by-laws can vary from building to building, and some buildings may have stricter rules regarding short-term rentals than others.

In addition, the NSW government has introduced new regulations that require strata schemes to adopt a model by-law regarding short-term rentals. The model by-law allows short-term rentals but sets out specific requirements for hosts, including a maximum number of guests, a minimum number of nights per booking, and a requirement to provide contact details to the strata committee. Strata by-laws can also be enforced through the NSW Civil and Administrative Tribunal (NCAT). If an owner breaches a strata by-law regarding short-term rentals, the strata committee can apply to the NCAT for an order to stop the activity or impose penalties. A prospective purchaser who is considering purchasing investment property and using it for short-term rentals should carefully review the by-laws for their building and ensure they are able to comply with any rules or regulations regarding short-term rentals.

In December 2020, the NSW government has also introduced a code of conduct for the short-term rental industry, which sets out minimum standards for owners and guests. The code includes requirements for property owners to provide accurate descriptions of their properties, respond promptly to guest enquiries and complaints, and ensure their properties are safe and clean.

Planning policies are set by local councils and determine how land can be used within their jurisdiction. Local planning policies can include zoning regulations, which designate different areas for different types of land use. For example, some local councils may prohibit short-term rentals in residential areas, while others may allow them only in commercial or mixed-use areas. Another example is that some councils may require owners to obtain a specific type of permit or license to operate short-term rentals or may impose conditions such as maximum guest numbers or noise restrictions. A prospective purchaser who is considering purchasing investment property and using it for short-term rentals should carefully review the policies of their local council and ensure they will be able to obtain said permit or license and to comply with any policies regarding short-term rentals.