Do New Strata Laws Thwart Anti-Airbnb By-Laws?

On 10 April 2020, new strata laws commenced. These laws clarify that an owners corporation is able to make a by-law that can prohibit a lot being used for a short-term rental accommodation arrangement in certain circumstances.

However, the new laws may have unintended consequences that invalidate or limit the reach of existing by-laws that prohibit short-term rental accommodation arrangements.

In this article we take a closer look at the new laws and their unintended consequences that seem to have been overlooked… Are new Strata Laws Anti-Airbnb By-laws?

For NSW strata legal, building defects and levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Recent articles published in the press about misinformation of COVID-19 strata laws have stated that short term accommodation arrangements through Airbnb have been banned.

There has also been conflicting information published about whether COVID-19 lockdown laws require an owners corporation to close its recreational facilities such as a swimming pool and gym.

In this short article we answer your questions about those issues and clarify the uncertainty surrounding the Misinformation about COVID19 Strata Laws – Clarified.

For NSW strata legal, building defect or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Special Arrangements made with NSW Land Registry Services to register consolidated by-laws.

 The Strata Schemes Management Act 2015 requires every owners corporation to keep a consolidated up to date copy of the by-laws for its strata scheme.  However, there is nothing in the Act which requires an owners corporation to register the consolidated set of its by-laws.

The only time an owners corporation needs to register a consolidated set of by-laws is when it resolves to make a change to its by-laws.  In those circumstances, the consolidated set of by-laws incorporating any changes to the by-laws must be lodged for registration within six months of the meeting at which the changes are approved.

The requirement for every owners corporation to keep a consolidated up to date copy of its by-laws was introduced on 30 November 2016 on the commencement of the Strata Schemes Management Act 2015.  Since then, most owners corporations have not made any changes to their by-laws as a result of which they have not registered their consolidated by-laws.  This means there is no public record of a consolidated set of by-laws for most owners corporations.

Up until recently, NSW Land Registry Services was reluctant to register a consolidated set of by-laws where it did not record any changes to the by-laws.  In other words, NSW Land Registry Services often would not permit an owners corporations to register a consolidated set of by-laws unless it had made changes to those by-laws within the last six months.  This has made it more difficult for owners corporations to register consolidated by-laws to ensure there is a public record of those by-laws in a consolidated form.

We have recently made arrangements with NSW Land Registry Services to allow an owners corporation which wants to register a consolidated set of its by-laws (even though it has not made any changes to its by-laws) to do so.  This will enable many owners corporations to register their consolidated by-laws to ensure there is a public record of them even though they have not made any recent changes to their by-laws.  If you would like to know more about these special arrangements, please do not hesitate to contact us.

For NSW strata legal, building defect or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Government proposes to change the laws regulating short term accommodation in NSW.

Recently, the key aspects of those new laws were published for public comment and submissions. The submission period has now closed.

In this article we take an in-depth look at those proposed changes to the laws regulating short term accommodation.

We consider the impact those changes will have on strata laws and planning laws (and strata living) and also review the key features of the Code of Conduct that will regulate participants in the short term accommodation industry.

What are the Proposed New Laws for Short Term Rental Accommodation?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Government is currently implementing a new regulatory framework for the short-term rental accommodation industry.

1. The framework includes:

• Changes to planning laws
• A mandatory code of conduct
• Introduction of an industry-led register of short-term rental accommodation properties

2. The NSW Government is seeking feedback on the following:

• Draft ‘Code of Conduct for the Short-Term Rental Accommodation Industry’ (the Code) that will apply to hosts, guests, online booking platforms and letting agents
• Draft Fair Trading Amendment (Code of Conduct for Short-Term Rental Accommodation Industry) Regulation 2019 that will support the Code’s implementation
• Proposed introduction of an industry-led short-term rental accommodation property register
• Draft planning instruments, which will allow residential premises to be used for short-term rental accommodation under certain conditions and provide a state-wide definition of short-term rental accommodation

3. Have your say on the short-term rental accommodation reforms.

• For more information visit the Department of Planning, Industry and Environment website.
• Any feedback must be submitted by 11 September 2019, simply click on the button below

PROPOSED LAWS – HAVE YOUR SAY HERE!

For all strata legal and levy recovery advise contact us here or call 02 9562 1266 we would be happy to assist.

Late 2018 the NSW Government announced its intention to make changes to the laws regulating short term accommodation in NSW.

The Government proposed to make three key changes to short term letting laws. In the attached article we take a closer look at those changes, including:

• Code of Conduct
• Short Term Accommodation By-laws
• Exempt Developments
• Comments about the Proposed Amendments
• The Wash Up

So, what are the proposed Short Term Letting Changes to the Law? 

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Short term accommodation, can it be stopped?

Does short term accommodation require Council approval or is it prohibited in most local government areas in NSW?

Is a by-law still an effective way to prohibit short term accommodation in a strata scheme?

We’ve prepared a short paper to help you understand the ins and outs of this area of strata law Short Term Accommodation.

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

It’s widely accepted that holiday lets have a more profound effect on apartment blocks than stand-alone dwellings, for obvious reasons.

Late last year, the Privy Council in London ruled on a piece of overseas strata legislation that was basically a cut-and-paste of NSW strata law, section 139 (2), which says that by-laws can’t interfere with owners letting their units.

But what do the ‘legal eagles’ think…

Adrian Mueller of JS Mueller & Co says that rather than a by-law restricting the number of days a property could be let I would… “Advise the owners corporation to make a new by-law that would prohibit an owner or occupier of a lot using the lot … for unlawful short-term accommodation”.

To read the full Australian Financial Review (AFR) article click here  Strata Lawyers Dissect Anti-Airbnb Rules.

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

In a recent case, NCAT ruled against a short term letting by-law being passed for a Sydney apartment block.

So, was NCAT’s decision wrong?

Can an owners corporation pass a by-law that bans short term letting?

Read on to find out: NCAT Rules Against Short Term Letting By-law

For strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Short term tenancies have long posed problems for community living.  The problem most commonly arises in communities where there is a mixture of permanent residents and short term tenants.  Issues of noise, damage to common property and inappropriate behaviour are often attributed to short term tenants.  Short term tenants vary from backpackers to holidaymakers to short term workers.

Strata schemes have tried to both regulate short term tenants and prohibit short term tenancies by use of by-laws.

Effectively regulating the behaviour of short term tenants has proved difficult.  Short term tenants are exactly that, short term, and are not generally around long enough to be effectively subjected to the laborious and lengthy procedures set out in the Strata Schemes Management Act 1996 (“the Act”) for enforcement of by-laws.

Click below to download the presentation and full paper on Short Term Tenancies from our April 2015 seminar:

• JS Mueller & Co Forum Short Term Letting Paper_Apr15
• JS Mueller & Co Forum Short Term Letting Presentation_Apr15

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.