Tougher short term Airbnb accomodation rules in NSW

Unruly NSW house guests will from today be subject to strict new short-term rental accommodation laws that could see them banned from securing accomodation again on booking platforms.

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.

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.

There will be changes to planning laws in mid-2021, including a new planning policy that applies consistent regulation of the use of premises for short-term rental accommodation across the whole state of NSW.

A short-term rental accommodation premises register is also under development for commencement in mid-2021.

Hosts must register their premises once that obligation is mandated by the Department of Planning, Industry and Environment and the register becomes available online.

Minister for Better Regulation Kevin Anderson said the new industry Code of Conduct provided clear obligations for hosts centred on minimum standards of good behaviour.

“If you are a house guest from hell behaving disgracefully in a holiday rental or a shady host trying to swindle an unsuspecting customer, under these changes you will face penalties, and could be banned from the industry for five years,” Mr Anderson said.

“These new laws are coming into effect at the perfect time as we now head into what is shaping up to be one of the biggest domestic tourism holiday seasons on record.

“While the tourism boom is fantastic news for local communities getting back on their feet following last summer’s bushfires and the unprecedented disruption of COVID-19, it also reinforces the need for increased protections against anti-social and disruptive behaviour.”

Anderson said a key feature of the new laws was the establishment of an exclusion register, which will introduce a ‘two strikes and you’re out’ policy. 

“We are introducing these laws as part of our broad reform of the sector. Together, they will ensure the minority of participants who are giving the sector a bad name are penalised or removed and the sector is improved for hosts, guests and communities,” Mr Anderson said.

The standards are enforceable, with powers available to the NSW Fair Trading Commissioner to take disciplinary action, including penalties and exclusion from the industry for repeat offenders.

All participants, including booking platforms, will be required to comply with the Code and with directions and requests from the Commissioner.

For a time apartment owners in New South Wales faced the prospect of having to pay compensation to their neighbours.

Prior to COVID 19, the short-term rental accommodation injected $2.1 billion plus annually into the economy.

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

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 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 latest rules arose from an options paper by the NSW government.