Short Term Accommodation Restrictions

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Popular regional areas of NSW have been experiencing a housing crisis for some time now due to the lack of supply of full-time rental homes, further fuelled by the pandemic and devasting floods in recent times.

What Restrictions are in Place?

In response to the housing crisis new holiday letting regulation has recently come in across the Byron Shire where a home can only be on the short term market for 90 days.

Also, now in place are short term holiday restrictions of no more than 180 days a year for the greater Sydney region, Ballina area, Bega Valley, the City of Newcastle, Dubbo, parts of the Clarence Valley and Muswellbrook regions.

The Loophole

However, some letting agents have found a loophole allowing them to get around the new legislation.

A multi-dwelling property where a person lives in one of those homes can still rent the others without restriction where there is more than one dwelling on the property, which permits a possible 365-day annual income.

These properties are usually defined as:

  • Hosted – where the owner lives on the premises for most of the time, or
  • Non-hosted – where the owner simply plays landlord, and the home is permanently off the long term market

It’s the latter category that has come under fire for inflaming the housing crisis.

A proposed 90-day cap on short-term letting in parts of Byron Shire is expected to be implemented to alleviate a dire rental shortage on non-hosted properties.

The cap, if passed, is set to be enforced from June 2024 to give landlords time to plan ahead.

Do you need a Short Term Accommodation By-law Review?

It’s 8 weeks until the holiday season are your STRA by-laws up to date?


Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

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