The NSW Government has announced a new regulatory framework to govern the short-term holiday letting industry. Short-term holiday letting has rapidly expanded in recent years due to the growth of online booking services such as Airbnb and Stayz. The new framework will include new planning laws, an industry Code of Conduct and new provisions for strata scheme by-laws.  


Management Rights Industry Concerns
Whilst the new laws are directly aimed at owners letting their properties through companies like Airbnb and Stayz, there is a real concern that the Management Rights industry is going to get caught up in the cross-fire under these new regulations.

Planning laws
New planning laws will allow short-term holiday letting under certain conditions. If the host is present, they can use their home for short-term holiday letting all year round as exempt development. That is, they do not need to submit a development application to local council.

If the host is not present, that residence can be used for short-term holiday letting up to 180 days per year in Greater Sydney, with 365 days allowed in all other areas of New South Wales. Councils outside Greater Sydney will have the power to decrease the 365 day limit to no less than 180 days per year.

Code of Conduct
A mandatory Code of Conduct will be introduced that will apply to anyone involved in providing or using short-term holiday letting, including hosts, guests, online platforms, and letting agents. This Code will apply to Management Rights operators.

The Code will establish the ‘2 strikes and you’re out’ policy. Hosts or guests who commit 2 serious breaches of the Code within 2 years will be banned for 5 years. Platforms and letting agents (including Management Rights Operators) will not be permitted to offer services to anyone, or any dwelling, that is listed on the exclusion register.

A strike will include any behaviour which unreasonably interferes with a neighbour’s quiet and peaceful enjoyment of their home.

The Code will establish a complaints system, which will be available to neighbours of short-term holiday letting premises, strata committees and owners corporations.

Complaints will be assessed by independent and impartial adjudicators, approved by the Commissioner for Fair Trading. Adjudicators will be required to make decisions on evidence and after giving both complainants and respondents a chance to put forward their case.

Strikes will be recorded on an online register to ensure that guests and/or hosts cannot ‘platform shop’. Platforms and property agents will have to check the register before taking on new customers. Failure to do so may result in significant penalties of up to $1.1million for corporations and $220,000 for individuals.

NSW Fair Trading will have powers to police online platforms and letting agents.

Strata Schemes
Strata scheme management laws will be amended to clarify that by-laws can prohibit short-term holiday letting, but only for lots that are not a host’s principal place of residence.

That is, if a host is genuinely sharing their home unit, they will still be able to use a spare room for short-term holiday letting, and will be allowed to let out their principal place of residence while they are away on holidays.

These change of by-laws will require a 75% majority to be passed.

When will the new framework start?
The introduction of the new framework will require changes to existing laws which must be approved by Parliament.

The Code will be developed in consultation with Government agencies, and industry and community groups during 2018.

The reforms will be reviewed a year after they commence.

What should Management Rights Operators in NSW do?
This proposed legislation could be quite detrimental to operators of short-term Management Rights in NSW. Also, this legislation could easily be adopted by other States. The ability for an Owners Corporation to pass a 75% majority vote that has the effect of overriding a town planning approval (that allows short-term letting) is simply bad law and should be opposed by everyone in the industry.

It is time to make your voice heard!

Every Management Rights operator in NSW should immediately contact their local Member of Parliament and voice their concern about this proposed legislation.

Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

 

 

THE MBA PARTNERSHIP ACCOUNTANTS

Management Rights Accountant

PAUL GAFFNEY | MANAGEMENT RIGHTS

The MBA Partnership is one of the most experienced firms of management rights accountants in Australia. Many of their clients are new to the management rights industry, and with over 30 years experience in management rights they have the expertise to help you set up correctly from the beginning. From due diligence, accounting, taxation and auditing Paul and his team can guide you through the entire process.

Phone: +61 7 5557 8700

LEVEL 3 "PIVOTAL POINT"' 50 MARINE PARADE SOUTHPORT QLD  4215

pgaffney@mbapartnership.com.au | managementrightsaustralia.net 


 

Management Rights & Motel Finance P/L

Mark Ryall

 Mark Ryall | MANAGEMENT RIGHTS

Management Rights and Motel Finance Pty Ltd is an industry leader in providing specialist finance needs to companies and individuals embarking on the purchase of a Management Rights business. Mark and his team is dedicated to helping you with all your management rights and motel finance needs! We work around the clock to make sure you receive the best deals.

Suite 4, Level 2 / 247 Bayview St Hollywell QLD 4216

Phone: 07 55641100 | 0419 640 215
Fax:     07 30140108

mark@mrmfinance.com.au | www.mrmfinance.com.au

Australian Credit Licence No: 378366


 

Management Rights Articles

  • SHORTCUTTING THE ASSIGNMENT PROCESS

    Different States have different requirements when it comes to obtaining Body Corporate consent to the assignment of Caretaking and Letting Agreements.

SMALL MYERS HUGHES LAWYERS

COL MYERS | MANAGEMENT RIGHTS

SMH Lawyers handles all aspects of a Management Rights transaction from establishing, purchasing and selling Management Rights to advising bodies corporate on strata related issues and disputes. Col Myers and his team of experts is constantly exposed to all aspects of the management rights industry which means they can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

Phone: +61 7 5552 6604 | Mobile: +61 417 620 516

Level 2, 17 Welch St Southport Qld, 4215

info@smh.net.au | www.smh.net.au  


 

Management Rights Brokers

 

 

 

 

 

Narelle Filmer | Linda & Wayne Stoll

Think Management Rights’ is a division of the nationally recognised First National Real Estate franchise. This team of specialist brokers operate throughout the state of Queensland. With over 15 years as owners, managers and sales agents in Management Rights industry, this team has a great deal of knowledge and experience to bring to the MRA seminars.

Wayne and Linda Stoll | Listings: Sunshine Coast / Gold Coast Region
Phone: 0452 181 505
wayne@thinkmanagementrights.com.au | linda@thinkmanagementrights.com.au 

Narelle Filmer | Listings: Gold Coast / Brisbane Region
Phone: 0459 229 744
Email: narelle@thinkmanagementrihgts.com.au  

www.thinkmanagementrights.com.au 


 

Visit Us

Contact Us

Newsletter Sign Up

GOLD COAST SEMINAR