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What can Owner’s Corporation do to regulate or prohibit AirBNB?

Posted 13 June 2017

Category: Strata, eBooks

On 19 April 2017, the NSW Government supported the Parliamentary Inquiry into the Adequacy of Regulation for Short Term Holiday Letting handed down in October 2016 which rejected calls to allow owners corporations to ban Airbnb letting within strata schemes.

If an owners corporation wishes to prohibit or regulate the operation of Airbnb short letting arrangements within its strata scheme the following needs to be considered:

  • Will the letting be prohibited by environmental planning laws?  There is likely to be more regulatory controls placed on such arrangements by Local Councils and this may assist owners corporations.
  • If planning approval is required by council or a private certifier, the owners corporation’s consent may need to be provided before the Council or a Private Certifier can give consent.
  • If an Owners corporation refuses to give consent the NSW Civil and Administrative Tribunal may overturn that decision.
  • Owners corporations, when considering such applications may need to consider:
  1. The necessity to upgrade services and amenities within the common property of the strata scheme including fire services, disability services, caparking facilities, etc;
  1. The potential for increased cost of maintenance and repair obligations for the owners corporation as a result of increased traffic through the common property areas and damage caused by short term occupants; and
  1. Insurance implications for the owners corporation.
  • If a lot owner does lodge a development application, the owners corporation and other lot owners can lodge objections against the application.
  • A by-law may be drafted to regulate short term letting arrangements.

If you need advice on how to approach the issues raised by short term letting arrangements within your strata scheme, how to object to a development application, how to interpret planning instruments or drafting an appropriate by-law we can assist.

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***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.

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Bannermans Lawyers

Published 13 June 2017

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