Short-term rental accommodation (STRA) in strata properties will continue to be a highly contentious topic in 2023 with even more scrutiny and increasing backlash to the industry because of the current housing crisis.

Since February 2023 there has been a significant rise in complaints about short term letting guests impacting strata blocks due to noisy parties, visitors coming and going, rubbish not being disposed of properly or at all and common property damage, among many other complaints.

Since 2021 the number of New South Wales properties listed as short-term rentals has surged by 42% with over 45,000 listed STRA properties, causing the State’s Planning Minister to review proposed annual caps later this year.

Councils Take Action to Regulate STRA

Many local councils are beginning to take action to regulate short-term letting in their areas introducing a raft of regulations for short-term letting with some councils increasing their council rates for property owners who short-term let for more than 60 days.

The Independent Planning Commission in early May 2023 advised that councils ‘should’ be allowed to impose a 60-day cap on short-term rentals after Byron Shire last year attempted to introduce a 90-day cap.

The NSW government is expecting 12 councils to call for strict caps on short-term rentals.

A decision is yet to be made regarding the capping of STRA properties however this trend is expected to continue in 2023, with more local councils introducing more controls to regulate the STRA letting sector.

STRA By-Law

In NSW, an owners corporation can introduce a by-law that restricts STRA. Many strata building have introduced STRA by-laws that prohibit unlawful STRA and regulate permissible STRA. Anecdotal evidence is that these by-laws have proven effective in reducing problems associated with STRA.

Is it time to review your Short Term Rental Accommodation (STRA) by-laws?

DOES YOUR STRA BY-LAW NEED TO BE REVIEWED? CLICK NOW!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

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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.

Deadline for New Rules for NSW STRA 

Here we explain the new rules!

The NSW government has issued a reminder that new short-term rental accommodation (STRA) rules will come into effect on 1 November 2021 coinciding with the return of regional travel across NSW.

These new STRA registration requirements follow the introduction of a mandatory code of conduct governing STRA rentals late last year.

And… most likely these new rules will also require your STRA by-laws to be reviewed!

What is the New Rule?

If you wish to rent a property as a STRA host, it is mandatory to register the property and pay the registration fee via the NSW Planning Portal by 1 November 2021.

What is the Deadline?

The deadline is Monday 1 November 2021.

What is the Cost?

STRA hosts are required to pay a registration fee of $65.00 for the first 12 months and an annual renewal fee of $25.00.

Who Does STRA Registration Apply to?

The STRA registration applies to owners of any residential accommodation who wish to rent their property out for short term rentals.

Do I Need to Provide additional Documentation to Register?

Yes, if the property is not owned by you, you must provide proof of consent from the property owner.

You must also verify that the property is in compliance with the fire safety standards as defined in the STRA policy here.*

*Please note: Given the recent lockdown orders, a grace period has been applied in relation to providing the fire safety standards.

STRA hosts will be able to register their short-term rental as required but delay the fire and safety requirement until 1 March 2022, giving STRA hosts an additional 4 months to adhere with the policy.

Where do I Register my STRA Property?

Your STRA property is to be registered here on the on the NSW Panning Registration Portal.

Do I Need to Update my Short-term Rental Accommodation By-laws?

Most likely, if you live in a strata property the STRA by-laws may need to be reviewed. For advice you may contact our experienced and knowledgeable STRA team here.

Where do I Find More Information on the New STRA Rules?

For more information on the new STRA rules visit NSW Planning STRA Portal here.

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