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26/09/2017 at 9:18 pm #11360
I just came across this a couple of days ago.
The full decision is here : https://www.caselaw.nsw.gov.au/decision/59a74669e4b058596cba9c5b
Is this the 1st NCAT case for AirBnB by-laws under SSMA2015 ?
What is your own take on the case ?
Thanks
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28/09/2017 at 3:15 am #28264
JimmyT said, of Dobrohotof v Bennic: “The case you highlighted was one that established that a house used exclusively for holiday rentals was not technically a dwelling.” What is crucial is that the Hon Justice Rachel Pepper clarified what is a “dwelling” and judged that short-term visitor/holiday rentals were not the intended nor appropriate use of a “dwelling”.
JimmyT said: “the only people who want to do something about it – strata owners…” There are NSW Resident Action Groups – non-strata – who have been campaigning on this issue for over a decade. (One such rocket – item of correspondence – was sent yesterday by those leading the charge on the far north coast. They are coalition partners of Neighbours Not Strangers.) The impacts of STRs are the same the world over, be it in Residential zones (suburbs) or Resdential strata. The “severe” impacts on neighbours are exacerbated in strata as we share the costs of common property upkeep plus the disruption/destruction caused is a mere wall away.
Dobrohotof v Bennic must still be considered the definitive ruling on STRs – former Commissioner of the Land and Environment Court referred us back to this judgment a few days ago. Read this judgment carefully; it contains many points of reference which are critical to the case and arguments against STRs
For those living in strata in NSW there is further weight given to us in another LEC case, where the infamous STR operator at the Bridgeport building had earlier applied to have the DA on the residential strata levels at 187 Kent Street altered to ‘mixed use’ (which is effectively what the ‘by-law option’ being proposed now could do – ie enforce or overturn a DA of ‘residential use only’). The Application plus the Appeal to the LEC – championed by the Council of the City of Sydney, who are now recommending that STRs be deemed ‘complying or exempt development’, lay out precisely why mixng STRs with permanent residents is “fundamentally incompatible”. If you’ve not yet been affected by STRs…just you wait.
To place the responsibility on individual owners to see to the enforcement of a DA, plus all other levels of compliance with Federal, State and Local Government Legislation, is insane plus so damaging and unfair.
It should and must be Local Councils who are responsible for enforcing Planning law, not an individual owner in a Strata scheme:
“…it appears that the council has been content for the Court to resolve the matter. On any view, this is unsatisfactory and amounts to an effective abrogation by the council of its fundamental duties and responsibilities. These duties include, amongst other things, to manage development and coordinate the orderly and economic use of land within the area under its control. By leaving it to the Court to determine this important issue, the council, by its inaction, has, in my opinion, failed to fulfil its core functions and has failed its constituents.” (Justice Rachel Pepper, Dobrohotof v Bennic.)
Tell us: what other issue and area of legislation is completely set aside with Councils declaring that they won’t enforce the law? Our NSW Minister for Local Government should be coming down hard and fast; Local Councils must be mandated to enforce the legislation. Could it be that Gabrielle Upton is influenced by the fact that just one of Deputy Premier John Barilaro’s properties is rented out on Airbnb for $1,850/night, plus one of her former Staffers is now a member of Airbnb’s army of employees here in NSW?
28/09/2017 at 10:20 am #28265Millie – I would be wary of using the Dobrohotof v Bennic case as authority for all short term letting cases, and in interpreting the outcome too widely.
This case only addresses a narrow category of short term letting houses that are used as “party houses”. JT is correct.
You stated that: What is crucial is that the Hon Justice Rachel Pepper clarified what is a “dwelling” and judged that short-term visitor/holiday rentals were not the intended nor appropriate use of a “dwelling”.
The second part of your statement (i.e. the section that I have underlined) is not correct.
The Judge in Dobrohotof v Bennic said this:
In summary, the current rental of the property as holiday accommodation for periods of a week or less to persons using or occupying it other than in the ordinary family or household way, does not constitute a “domicile”, does not constitute a “dwelling”, and therefore, does not constitute a “dwelling-house” for the purpose of item 2 in the 2(a) Residential Zone. The use of the property not being otherwise permissible, it is prohibited within the Zone and it constitutes development in breach of s 76B of the EPAA. (my underling)
There are two limbs to the summary:
(a) holiday accommodation for periods of a week or less,
(b) persons occupying it other than in the ordinary family or household way.
If both limbs are present then the the Judge suggests that the property cannot be defined as a “dwelling”.
When both limbs of the Judge’s summary are applied then a property would still be deemed to be a “dwelling” if it was used as short term accommodation for periods longer than a week by a family or family members, or by a group of non family members using it in a household way.
The case does not act as authority for banning all short term letting.
The Gold Coast City Council have addressed the issue of “party houses” with the following ordinance:
https://www.goldcoast.qld.gov.au/documents/ll/Local-law19-party-house.pdf
Below is the GCC’s meaning of residential property. You will note that it is quite different from the rather ‘clunky’ (and yet to be tested) definition arrived at by the Judge in the D v B case.
A residential property is—
(a) a property of a type that would ordinarily be used, or intended to be used, as a place of residence or mainly as a place of residence; and
(b) another property specified as a residential property in a subordinate local
law.30/09/2017 at 9:10 am #28288Lady Penelope
As a lay person, I’d think the verdict is ‘in’ on how the NSW Land and Environment Court judges mixing STRs with permanent residents? (see below) I’m just referring to the following case law, which doesn’t include the Blues Point Tower 1990 judgement which all the STR operators refer to as deeming their activities “illegal”. This is a Planning/Zoning issue. As an individual who has had to deal with this within a large strata complex, to put the onus onto individuals to cope with then attempt to sort this issue out is unfair, to say the absolute minimum.
There should be fines issued by Councils for breaking Zoning regulation, as with any other fine. And if the offender doesn’t comply, they should then be marched swiftly into the Land and Environment Court.:
(Potter v Minahan [1908] HCA 63; (1908) 7 CLR 277 at 288; North Sydney Municipal Council v Sydney Serviced Apartments Pty Ltd (1990) 21 NSWLR 532 at 538A-B; [1992] North Sydney Council v Sydney Serviced Apartments Pty Ltd; [2001] Foster v Sutherland Shire Council; KJD York Management Services Pty Ltd v City of Sydney Council [2006] NSWLEC 218; (2006) 148 LGERA 117 at [8]-[18]; City of Sydney Council v Waldorf Apartments Hotel Sydney Pty Ltd; [2007] 187 Kent street v Council of the City of Sydney; [2007] 187 Kent street v Council of the City of Sydney Appeal; [2008] NSWLEC 97; (2008) 158 LGERA 67 at [38]; Warlam Pty Ltd v Marrickville Council [2009] NSWLEC 23; (2009) 165 LGERA 184 at [35]-[36]; Najask Pty Ltd v Palerang Council [2009] NSWLEC 39; (2009) 165 LGERA 171 at [15]; Vic Vellar at [32]; Dooralong Residents Action Group Pty Limited v Wyong Shire Council [2011] NSWLEC 251; (2011) 186 LGERA 274 at [110]; 820 Cawdor Road at [24]; [2011] Council of the City of Sydney v Oaks Harmony; [2011] Council of the City of Sydney v Oaks Hotels and Resorts (re Maestri) 234; [2011] Council of the City of Sydney v Oaks Hotels and Resorts (re Maestri) 235; GrainCorp Operations Limited v Liverpool Plains Shire Council [2012] NSWLEC 143 at [20]-[27] and Haddad at [47]); [2013] Dobrohotoff v Bennic; [2014] Council of the City of Sydney v Con Kotis/Australian Executive Apartments at [14/4923].
30/09/2017 at 9:24 am #28289Check out the Sydney Morning Herald re this case.
30/09/2017 at 6:08 pm #28298Correct Ziggy.
This is a Zoning (Local Council) issue, not a strata issue. Councils must be mandated to enforce zoning legislation.
Have you noticed Councils no longer issue parking and other fines? Well, they still do this, so they need to be enforcing our Determination of Development Applications and the Residential certificates of occupation too.
It’s unfair that individuals and groups within residential buildings/suburbs have to struggle through the Tribunal/Courts when they have clearly bought into a residential property/suburb. We’re being pitted against multi-billion dollar platforms who use ‘privacy concerns’ to hide the extent of what’s going on.
In 2013 a 1,200-page Request for Orders to the Tribunal was dismissed; it’s zoning…go to Council. The Council in question finally took the matter to the Land and Environment Court and Orders were issued there, together with a Penal Notice. There was NO contest. The respondent knew he was absolutely in the wrong.
02/10/2017 at 10:49 am #28310@Millie said:
This is a Zoning (Local Council) issue, not a strata issue. Councils must be mandated to enforce zoning legislation.It’s going to be at least a year before there is new legislation in place. Councils are doing nothing – is there any mechanism that can compel them to act … short of booting them out at the next election?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
02/10/2017 at 10:53 pm #28314In a word: Yes.The Ombudsman is empowered to investigate councils who fail to enforce legislation within six weeks of being notified of an issue..One can telephone the Ombudsman to find out how to make a complaint against council for not enforcing the DA on a property. Admitting that there is a classic example where this action could have but hasn’t as yet been taken:Two years ago the City of Sydney took a whoppa of a short-term letting operator to the Land and Environment Court. (The offender was the same protagonist behind the LEC’s 187 Kent Street judgments so knew he didn’t have a twig to stand on in the Bridge Street building matter. He offered no opposition in Court when the case was put and simply accepted the Orders plus a $10,000 fine paid to Council (not a cent went to the OC, of course), having turned over absolute millions in the “illegal use of premises” over the proceeding 18 years.The Orders were against said individual/his company. Short-term rentals disappeared. Peace, for the first time in almost two decades.Some months later, the building started seeing people coming and going again with suitcases, plus cleaning teams regularly race in and out, servicing apartments.All details have been sent to the City of Sydney who now write:“It is noted that you allege that the units detailed….are being used to provide short term residential/tourist style accommodation (a potential breach of the extant development consent). The use of these units for short term residential/tourist style accommodation has been considered in terms of its impact on the amenity of the building and the safety of its occupants to determine if it is within the public interest for Council to proceed with formal enforcement action against those facilitating the use of the units.In this case, Council has elected to not enter into enforcement ction given that there is no significant detrimental effect on the environment and it does not constitute a risk to public health and safety.It is recommended that you raise (or reiterate) your concerns with the Strata Committee who can investigate and take action accordingly.”Said Strata Committee are the old short-term letting cohort and fans, including one big, former State MP. One of the Committee Members has a cleaning crew coming and going…serviced apartment. The Committee won’t lift a finger and have ‘resolved’ that any owner who has issue with STRs should refer the matter to Council. They also fail to list requests for Motions on Agendas…just can’t go on – there’s too much.What should happen is the owner who has so far invested six full years in trying to correct the situation in the building should take the matter to the Ombudsman, as literally volunteered as an option to them by the CEO of the City of Sydney Council. Seems this is all a game to staff at Council.As said previously, this would make an excellent ABC script, similar to that of Utopia. It could perhaps be entitled something along the lines of ‘Death by Exhaustion‘?02/10/2017 at 11:13 pm #28315And there you have it. This fact sheet from the office of the Ombudsman lists, right up near the top of things it can investigate in councils, their failure to enforce the terms of development approvals.
Is anybody game to make the call? Is your council turning a blind eye toclearly proven holiday lets? We can pretty much ensure it will get maximum publicity if you do.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
03/10/2017 at 7:47 am #28316Thanks JimmyT.
Can one add, it’s inconceivable that local government employees to not understand our legislation or that the ‘burden of proof’ in circumstances such as the illegal short-term tourist/visitor rental of residential homes is asolutely straight forward and uncomplicated: it is based on the ‘balance of probability’ and not that required as ‘criminal proof’ ie, ‘beyond a reasonable doubt’.
All the available evidence, such as availability calendars that are clearly viewed on booking platforms, real estate agents’ booking calendars that can be freely subpoenaed, advertising signage, affidavits from neighbours, photographs, copies of reviews, etc, is more than enough evidence to proved that a change of use has occurred when an apartment is operating in breach of zoning as a short-term rental.
Is it a case that all Council Staff across NSW are so profoundly incompetent, or is this a sign of collusion between those working within councils and the short-term rental platforms.
We should all contact the Ombudsman. Now.
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