Over the past few years, there has been a noteworthy surge in the prevalence of short-term rentals and Airbnb listings in NSW. While this may provide additional income for property owners, it also poses various challenges and complexities when it comes to strata law compliance. One of the main issues with short-term rentals is the potential disruption and safety concerns for other residents in the building. 

​

In New South Wales (NSW), strata law regarding short-term rentals is governed by the Strata Schemes Management Act 2015 and the Strata Schemes Management Regulation 2016. These laws aim to provide guidelines and regulations for the operation of short-term rentals within strata schemes.

 

Some key aspects that strata schemes and short-term rental operators should be aware of include:

​

By-laws

Strata schemes may have specific by-laws that govern short-term rentals. These by-laws can include requirements such as obtaining prior approval from the owners corporation, setting limits on the number of occupants, and specifying the maximum duration of a short-term rental. It is important for lot owners and operators to familiarize themselves with these by-laws to ensure compliance.

​

Registration

Short-term rental operators are generally required to register their rental premises with the local council or the NSW Department of Fair Trading. This registration ensures compliance with safety regulations and helps maintain transparency in the operation of short-term rentals.

​

Safety Regulations

Strata schemes need to ensure that short-term rental properties comply with safety regulations, including fire safety standards, building codes, and other relevant legislation. This may involve regular inspections, maintenance of safety equipment, and adherence to any additional safety requirements set by the owners corporation.

​

Insurance

Owners engaging in short-term rentals should carefully review their strata insurance policies to determine if they provide adequate coverage for these activities. It is important to inform insurers about the intention to engage in short-term rentals, as failure to disclose this activity may result in insurance claims being denied. Additional insurance coverage may be required to protect against any potential liabilities arising from short-term rentals.

​

In strata schemes where short-term rentals are permitted, effective communication and conflict resolution mechanisms are essential. Open dialogue between lot owners, the owners corporation, and short-term rental operators can help address any concerns or issues that may arise. Mediation or dispute resolution processes may be utilized to resolve conflicts relating to short-term rentals.

​

It is essential for both owners and owners corporations to understand their responsibilities and obligations when it comes to short-term rentals in a strata scheme. Failure to comply with by-laws or regulations can result in penalties, legal action for property owners who continuously violate these rules.

​

If you are contemplating implementing by-laws to govern short-term rentals in a strata scheme, or if you are hosting short-term rental or Airbnb and want to ensure compliance with the law, don't navigate these intricate regulations on your own. Reach out to our legal team for advice tailored to your specific circumstances.