Is a by-law prohibiting AirBnB accommodation lawful?

Is a by-law prohibiting AirBnB accommodation lawful?

After some 3 years of community and industry consultation, last Tuesday, the NSW government announced its proposed new laws to empower Owners Corporations to ban AirBnB rentals and similar online short-term letting accommodation.

Residents will remain unaffected by the proposed new laws. In other words, owners and tenants who wish to home-share will still be permitted to do so.

The crackdown is to address unruly, noisy, destructive and disruptive guests.

Sydney, Newcastle and Wollongong investment properties will be restricted to short-term letting up to a maximum of 180 days per year, while other properties in NSW will remain uncapped.

The Minister for Innovation and Better Regulation, Matt Kean, has stated the proposal would also include a two-strike rule for those in serious breach of the mandatory code of conduct which would last for 2 years. Persons found in breach of the rules would be banned from using short-term platforms for 5 years.

Mr Kean also stated that strata complexes could ban a host from letting their apartment on AirBnB if they did not live in it.

It has been reported that NSW Fair Trading will appoint adjudicators to assess complaints under the mandatory code and maintain an online register of offenders.

There will apparently be hefty fines in case of breach.

Feel free to contact us with any questions specific to your property.

Please note that this article is provided for general and personal information purposes only and is not a substitute for professional legal advice.