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  • #9051
    Jimmy-T
    Keymaster

      A global social network-based room rental service is testing strata bans on short-term lets to breaking point.

      The Airbnb website has already caught the attention of councils in Sydney concerned that private residences are being used as bed and breakfast accommodation, which may require change of use certification.

      According to this story in the Sydney Morning Herald, councils have already threatened to fine owners who let rooms illegally.

      ”The City’s Local Environment Plan does not permit mixing permanent residential use with tourist and visitor accommodation models in the same building,” a City of Sydney council spokeswoman told Fairfax reporter Leesha McKenney.

      City of Sydney has the highest concentration of apartment blocks in Australia.

      The story mentions a complaint from neighbour in the strata scheme … and it’s in strata where the real battlefield will be.

      The Airbnb concept is designed for people who want to travel cheaply and meet locals from the places they are travelling to.  Like website TripAdvisor it allows tourists to rate and comment on the places they stay.

      The twist on Airbnb is that it also lets the hosts rate the guests.  Steal too many towels and toiletries and you might not get the stars you were hoping for.

      Travellers who use Airbnb swear by it.  They can identify like-minded people who will both rent them a room and introduce them to the delights of their home city.

      Their hosts can similarly pre-select their guests by checking their previous ratings.  It’s all so hip, now and Facebook friendly that it’s hard to see the flaws.

      But how does letting rooms in your flat for a couple of nights sit with council bans on commercial enterprises and strata by-laws banning rentals of less than three months?

      And if the listings are entire apartments in residential strata buildings, you have really crossed the short-term letting line.

      Add the council concerns in Sydney to the stoush in Melbourne over party flats in apartment blocks, and you can see trouble brewing for Airbnb hosts in apartment blocks.

      Check the website for listings in your area and you may be surprised to find how many entire units are available in buildings you thought were purely long-term residential.

      What’s the difference? If you are letting a room in your home, you might think that’s mostly harmless since you are there to deal with any problems that might arise.

      But if, under the guise of touchy feely social networking, you rent a vacant unit in a building that bans short-term lets, you are a strata parasite, plain and simple.

      Too harsh?  Ask the people who find their homes being turned into hotels and the hotel workers who can’t find jobs because of opportunists who think loopholes in strata laws are there to be exploited.

      What do you think of Airbnb in strata buildings?

      The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
    Viewing 9 replies - 16 through 24 (of 24 total)
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    • #19698
      Jimmy-T
      Keymaster
      Chat-starter


        @Whale
        said:

        I also wonder if a Plan’s Special By-Law banning short-term lets would contravene Sect 49(1) of the NSW Strata Schemes Management Act?

        I asked the same question and I have been assured by eminent legal brains that by-laws forbidding short term rentals do not contravene Section 49 as it relates to buying and selling, not day to day use of the property.

        Regarding my (mis)use of the term “permanent” residential, I was trying to differentiate between normal residential and commercial residential.  

        This is one of the grey areas where owners get into bother – why is a short-term let commercial and a long-term let isn’t?  Both are being rented out for profit.  The answer lies in the purpose of the rental – if it’s short-term it isn’t a residence, it’s accommodation.  But the strata parasites who insist on treating out homes like hotels will wriggle through any loophole they can to protect their ‘right’ to make money at their neighbours’ considerable expense.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #19699
        Whale
        Flatchatter

          Thanks Jimmy, I now better understand the differentiation between short-term accommodation and the lease of a residence, but as Sect 49(1) talks about Special By-Laws not restricting “the devolution of a lot or a transfer, lease, mortgage, or other dealing relating to a lot” I wasn’t so sure about that interpretation.

          I guess it’s the fact that short-term rentals are not covered by a lease that nullifies the provisions of Sect 49(1), and that must be the professional interpretation of those eminent legal brains.

          Thanks again; all’s now clarified! 

          #19845
          Whale
          Flatchatter

            There’s movement at the short-term rental station!

            I today came across the account of a very recent meeting convened by our local (NSW Regional) Council, and so as not to disclose its identity I’ll simply provide the following extract from Council’s published record of the proceedings, with my editing in brackets:

            “Council is working together with rental property managers in the (area) to ensure holiday property rentals are an enjoyable experience for visitors and permanent residents alike.

            Council has held a workshop with local industry representatives about the Holiday Rental Code (HRC) which was recently adopted.  This Code was prepared by the NSW Real Estate Institute in conjunction with the NSW Government.

            “Council hopes to establish a positive working relationship with property managers ahead of the holiday season” said Council’s Director of Planning and Environmental Services, (name removed).

            “We have had informal and open discussions with local real estate agents to gauge their thoughts on how we can ensure that (area) residents do not face the issues that have occurred elsewhere in NSW” added (name removed).

            “We believe that we can establish responsible and effective management of holiday rentals by working together cooperatively with the industry, local property owners, holiday makers and local residents.”

            The Code outlines a number of responsibilities that are shared by holiday property managers, owners of rental properties and holiday makers to ensure standards are maintained to preserve the amenity of the neighbourhoods.”

            HERE is the Holiday Rental Code that’s referred to above which may indeed be well intentioned, but in my opinion the intention appears to be to have some self-regulation in place to head-off regulation of the State and Local Government variety (who contrary to Council’s report didn’t participate in the development of the HRC), and to steer investor/owners in the direction of those Real Estate Property Managers who are members of the participating Industry Group and are therefore signatories to the Code.

            I would have expected that the procedures embodied in the HRC should already be standard procedures in a properly operated Property Management Business, and frankly I doubt that formalising those and sticking them on the back of the bathroom doors in holiday rental properties will make any difference to the behaviours of those short-term renters who are inclined to ratbaggery or to that of those investor / owners who want nothing more than bums in beds.

            #19846
            Millie
            Flatchatter

              Thanks Whale.  An interesting read.

              I think this proposal serves well the financial interests of Real Estate Agents, Property Managers, and those renting their Residential properties as Tourist and Visitor accommodation.  One asks: is this not mere ‘window dressing’ to skirt around a breach of the Environmental, Planning & Protection Act plus the shocking array of issues that short-term lettings create?  

              Alas I fail to see how it affords any protection to those using their Residential property as their residence or those renting their Residential property to a leaseholder who in turn use the property as their permanent residence.  

              Investors who want to invest in this type of accommodation – short-term lets – should feel free to invest in hotels/serviced apartment/holiday complexes and the like.

              The investors involved in the practice of short-term letting DON’T live in the properties so don’t suffer the blight of constant ‘comings and goings’, disturbance, abuse of common property areas, risk to health/safety/life etc that short-term lets in Residential properties create.  They are also blind to the fact that their short-term financial gain is the long-term financial loss of everyone, themselves included.  

              Where I live, ‘peak-season’ is every week of the year.  One can monitor daily the short-term ‘occupation rate’ in our building by simply checking the ‘availability’ on websites such as ‘Wotif’, ‘lastminute.com’ – indeed the list of sites where our building is advertised goes on for web page after web page.

              From someone who lives in a Residential building where large-scale short-term letting is organised, operated and protected by our ‘Caretaker’ (whose only ‘care’ is what he can ‘take’ from the OC/our building) and our Executive Committee Members – they got rid of all the Resident Owners from our EC by way of vote farming at our last AGM:  RESIDENTIAL OCCUPATION AND SHORT-TERM TOURIST/VISITOR LETS ARE NOT COMPATIBLE.   

              #21882
              elephant
              Flatchatter

                Air Bnb increases the noise wear and tear on common property also if someone injures themselves it most likely will be the strata insurance paying making the insurance go up
                Whilst the person leasing it out is profiting
                Also is there a difference between air bnb and house swapping? Could someone let me know?

                #21884
                Millie
                Flatchatter

                  Hi Elephant

                  I can advise that Airbnb recently updated their ‘conditions’ and all users had to acknowledge and agree to them.  

                  We have one Lot Owner who is still renting constantly through Airbnb despite an utterly clear dictate from our local council that short-term holiday lets are ‘Illegal’.

                  If your Executive Committee is co-operative and wants to ensure that you meet all the conditions of your Building Insurance, ie that ALL rules governining your property – your building’s Development Consent issued by your local Council – are adhered to, you could present the offending Lot Owner/s with Airbnb’s blurb and ask them to comment.  

                  As a Strata Owner you and every Lot Owner in your building has unlimited liability – it’s no joking matter if your property burns down through the fault of holiday lets.

                  With regards to ‘house swaps’, again ask your Council – they are the ones who have issued the Development Consent for your property.  Alas, our Council has let us down miserably, miserably, miserably…:

                  AIRBNB:  PLEASE READ THESE TERMS OF SERVICE CAREFULLY AS THEY CONTAIN IMPORTANT INFORMATION REGARDING YOUR LEGAL RIGHTS, REMEDIES AND OBLIGATIONS. THESE INCLUDE VARIOUS LIMITATIONS AND EXCLUSIONS, A CLAUSE THAT GOVERNS THE JURISDICTION AND VENUE OF DISPUTES, AND OBLIGATIONS TO COMPLY WITH APPLICABLE LAWS AND REGULATIONS.

                  IN PARTICULAR, HOSTS SHOULD UNDERSTAND HOW THE LAWS WORK IN THEIR RESPECTIVE CITIES. SOME CITIES HAVE LAWS THAT RESTRICT THEIR ABILITY TO HOST PAYING GUESTS FOR SHORT PERIODS. THESE LAWS ARE OFTEN PART OF A CITY’S ZONING OR ADMINISTRATIVE CODES. IN MANY CITIES, HOSTS MUST REGISTER, GET A PERMIT, OR OBTAIN A LICENSE BEFORE LISTING A PROPERTY OR ACCEPTING GUESTS. CERTAIN TYPES OF SHORT-TERM BOOKINGS MAY BE PROHIBITED ALTOGETHER. LOCAL GOVERNMENTS VARY GREATLY IN HOW THEY ENFORCE THESE LAWS. PENALTIES MAY INCLUDE FINES OR OTHER ENFORCEMENT. HOSTS SHOULD REVIEW LOCAL LAWS BEFORE LISTING A SPACE ON AIRBNB.

                  #22061

                  I rent out my studio in Bondi through Air B n B, and I object to being called a parasite. I work in the TV industry when in Sydney and my employment is sporadic and unpredictable-most jobs last from 1 to 3 months. I bought the flat after feeling I’d freeloaded on my friends in Sydney for long enough. Initially I rented it out to others in the industry in the same predicament, but since joining Air B n B I’m able to meet the expense of maintaining a second home in Sydney much more easily. My minimum stay is 2 weeks and I screen the applicants carefully- it is my second home and they are using all my stuff. I haven’t checked, but as the apartment block was once a hotel I’m probably not breaking any rules. I attend all the AGMs and have never heard a complaint about this practice. I am not depriving a needy student of a home- for a start, I never even consider anyone under 40- and as I get jobs at short notice, the place would be left empty most of the time if it weren’t for out delightful Air B n B guests, most of whom are retirees who have saved for years to visit Australia and can’t afford exorbitant hotel rates. I live in Byron Shire so I’m well aware of the ‘party house’ problem here and in Sydney- but there are many tales in the Naked City, and this has been one of them!

                  #22066
                  Jimmy-T
                  Keymaster
                  Chat-starter


                    @loretta1
                    said:
                    I rent out my studio in Bondi through Air B n B, and I object to being called a parasite. 

                    Loretta, yours is a perfect example of how strata really works.  If every short-term landlord was like you, there would be no need for any rules or regulations. No complaint from neighbours, then no problems. But that’s just one of the reasons you are not a “parasite”.  It may well be that short-term lets are allowed in your building anyway – the DA and by-laws will reveal that. Even if they don’t, you are considerate of your neighbours and – and here’s the significant difference – it is a place you return to regularly and stay there yourself so you are accountable for the behaviour of your guests.  That makes a world of difference. And, by the way, I too have worked in TV and I know only too well how patchy work can be.

                    However, take, someone who owns several apartments in one building that IS zoned “permanent residential only” but he weasels his way through every loophole, real and imagined, to rent them out for periods as short as two nights, threatens residents who complain (and they do) then blithely sits on the committee of another building that doesn’t allow short-term lets even though it has exactly the same DA.  What do you call someone like that?

                    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                    #22077
                    kiwipaul
                    Flatchatter

                      @loretta1 said:
                      Initially I rented it out to others in the industry in the same predicament, but since joining Air B n B I’m able to meet the expense of maintaining a second home in Sydney much more easily. My minimum stay is 2 weeks and I screen the applicants carefully- it is my second home and they are using all my stuff.

                      I’m with Jimmy on this one but I think you are an ideal landlord but our argument is against those who are not. You say your apartment is in a block NOT classed long term residential and so what you are doing is perfectly legal and owners buying into it have to accept that it is going to be occupied by holiday makers.

                      I’m sure that if you were staying in the apartment during Nov and schoolies moved into either side you would not be impressed so how much worse is it for residents of apartments classed as residential to have to put up with the same disruption.

                      A lot of holiday makers have a different mind set to long term residents and exhibit a different behavior and people buying into long term residential property don’t want this sort of behavior.

                    Viewing 9 replies - 16 through 24 (of 24 total)
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