Airbnb short term rental rules in New South Wales get closer

Airbnb short term rental rules in New South Wales get closer
Joel RobinsonDecember 7, 2020

The New South Wales Government are set to introduced a regulatory framework around short term rental accomodation (STRA).

The industry was estimated to be worth $31.3 billion nationally in 2016.

New South Wales alone made up around half of that figure. Sydney ranks as one of Airbnb’s top ten cities for most properties on the platform. In June 2018 the NSW government put a 180-day cap on the number of empty days properties can be rented out by Airbnb in Sydney.

It also gave strata corporations the power to ban Airbnb in their buildings if 75 percent of owners seek the ban.

The government are now set to implement a new regulatory framework at some point this year which includes a mandatory code of conduct, new planning instruments and a possible register of all STRA properties.

Kevin Anderson, minister for better regulation, encouraged anyone with an interest in STRA — whether they be hosts, guests, neighbours, industry associations or booking platforms — to have their say while consultation is open on all elements of the new framework.

“The mandatory Code of Conduct will facilitate oversight of STRA providers, including providing for the resolution of complaints and disputes regarding the conduct of hosts and guests,” Anderson said.


Airbnb short term rental rules in New South Wales get closer

The code will establish a ‘two strikes and you’re out’ policy.

Hosts or guests who commit two serious breaches of the code within two years will be banned for five years.

Platforms and letting agents 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.

“Under the Code, all participants will be required to act honestly and in good faith and comply with directions and requests from the Commissioner for Fair Trading," Anderson added.

“Hosts’ obligations relate to holding an appropriate level of public liability insurance and providing neighbours and owners corporations with information such as the host’s contact details, and that they are bound by the Code of Conduct during their stay.

"Guests will have to ensure their behaviour does not unreasonably impact on neighbours and will be required to take reasonable care of the property.

“Our proposal includes making the industry responsible for funding, developing and administering the register – with any registration system applying to all STRA properties, including those let through online booking platforms,” Anderson said.

Stayz has welcomed the registration proposal.

Stayz corporate affairs director, Eacham Curry said that while the details will still have to be worked through, the proposed industry-led registration system is an innovative approach to co-regulating the sector.

“By clarifying the boundaries of our sector, a simple register of all holiday rentals has the potential to ensure that local governments, communities and our industry can work together to improve amenity and make more informed decisions about urban planning," Curry said.

"We look forward to working with the NSW Government and other stakeholders on designing a nation leading registration system."

More information on the Code of Conduct for STRA can be found on the Fair Trading website at





Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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