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Short-term rental accommodation framework finalised

A new policy framework to manage short term rental accommodation in NSW

The statewide Short-Term Rental Accommodation (STRA) policy for homeowner holiday rentals has been finalised, giving the industry four months to implement the new changes.

The new framework follows extensive consultation with the community and the holiday letting industry. It aims to benefit homeowners who want to take advantage of holiday rentals while providing more certainty and safety for locals and visitors.

The policy comes into effect on 1 November 2021 to give businesses and homeowners time to understand their requirements. Originally it was planned to come into effect on 30 July 2021, however significant objection to such a short implementation time frame resulted in the new November commencement date.

The final STRA policy includes:

  • A cap of 180 days for homes across Greater Sydney, and parts of coastal and regional NSW, where the owner lives elsewhere;
  • Hosted STRA homeowners being able to rent their homes out 365 days of the year;
  • Minimum fire safety standards; and
  • A Code of Conduct for hosts, guests, online booking platforms and agents.

Download the fact sheet from NSW Planning for more information.

The STRA Register

A new Government-run register for STRA has been developed to ensure compliance with the new fire safety standards. Any dwelling proposed to be used for STRA must first be registered on the STRA Register. Upon registration, hosts will be required to agree to a disclaimer confirming that the dwelling complies with the STRA fire safety standard.

The Register will also capture the number of days a property is used for STRA and will be integrated with key STRA booking platforms (e.g. Stayz and Airbnb), allowing for improved monitoring of the policy’s day limits.

Information on STRA properties collected through the register will be available via the NSW Planning Portal to the relevant Council to assist with monitoring and compliance of STRA dwellings registered in their local government area. The STRA Register is now live to the public via the NSW Government’s NSW Planning Portal.

Safety Standards

The new planning rules include fire safety standards that are required to be complied with for all dwellings used for STRA. These safety standards provide for the safety of guests and visitors, who might be less familiar with their location than residents of a dwelling.

The Short-term Rental Accommodation Fire Safety Standard is available on the NSW Planning website.

The fire safety standards have been revised in response to feedback received on the exhibited standards and strike an appropriate and reasonable balance between the need for higher safety requirements and cost-prohibitive safety requirements.

Download Short-Term Rental Accommodation Fire Safety Standard 2021

Code of Conduct

A mandatory Code of Conduct for the Short-term Rental Accommodation Industry applies to all participants in the short-term rental accommodation industry. The code applies minimum standards of behaviour and requirements to all participants. The Code creates new disciplinary actions that NSW Fair Trading can take, including listing non-compliant participants on an exclusion register.

The Code of Conduct was updated on 28 May 2021 to reflect that the planning instruments and premises register are now due to commence in November 2021.

Obligations in the Code relating to the premises register, start when the premises register becomes mandatory.

Strata By-laws Prohibiting Short-Term Rental

Strata buildings can enact by-laws to prohibit STRA in a building where the dwelling is not a principal place of residence (non-hosted STRA).

If an apartment is also the principal place of residence, then hosted STRA can be undertaken under the policy without reference to possible strata by-laws. However, hosts must still comply with all requirements of the policy such as fire safety standards and registration on the STRA Register.

Regulations

 

For more information on this topic, contact your S+ Strata Manager.

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