Monthly news roundup – June 2018

It’s been a busy month for short-term rental news in Australia and around the world. Here’s what you need to know.

The details:

1. NSW announces STR policy

The policy will become law soon and is based on 5 pillars:

1. No cap to owner-occupier STRs, 180-day booking cap to investor STRs in Sydney
2. No ability for stratas to block owner-occupier STRs, and 75% vote required to block STRs in investor-only units
3. No limits to any STRs outside of Sydney, but local councils can adopt booking limits up to 180 days on investor property
4. A “two strikes” law to shut down party houses
5. A code of conduct for hosts (no details yet)

The laws ignore global best practice and don’t do enough to help local councils and stratas control the problem. It’s tough to strike a balance between community and tourist dollars, especially in a rapidly changing industry. But these laws are weak and what’s worse, cripple local efforts to find better solutions.

Read more:

• A detailed summary of the proposed rules
• These rules would be better…
• Don’t wait for the legislation. NSW stratas should keep passing bylaws restricting STRs
• Does NSW even need state-wide rules for short-term rentals?
• Byron Bay asks for an exemption from NSW’s rules – And they should get it.
• NSW’s rules up the pressure on Victoria to finally sort theirs out
• In the meantime, Melbourne developers are banning STRs in new buildings

2. June saw more properties in ANZ trashed by STRs gone bad, including a fancy house in Victoria and one by a 14-year-old (!) in NZ
3. The STR statistics that really matter – Too often we see stats supplied by Airbnb quoted in the media about the “average” listing. Don’t be swayed! These are designed to make the problem seem much less severe than it really is. What we should really be asking is what listings generate the booking activity, and where is Airbnb’s revenue coming from?
4. Airbnb & Homeaway fight sensible regulations that might cost them money (as usual) – This month in Santa Monica, New Orleans, Boston and New York.
5. Finally some good news – Sunshine Coast is putting a sizable levy on short-term rentals. We’re missing some details but this is a great approach, attacking the problem economically instead of through vague and unenforceable laws (ahem, NSW…). Hope to see more councils follow.

If you’re a strata or local council with an STR problem, reach out to us. We’re always happy to chat.