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  • #9051
    Jimmy-T
    Keymaster

      A global social network-based room rental service is testing strata bans on short-term lets to breaking point.

      The Airbnb website has already caught the attention of councils in Sydney concerned that private residences are being used as bed and breakfast accommodation, which may require change of use certification.

      According to this story in the Sydney Morning Herald, councils have already threatened to fine owners who let rooms illegally.

      ”The City’s Local Environment Plan does not permit mixing permanent residential use with tourist and visitor accommodation models in the same building,” a City of Sydney council spokeswoman told Fairfax reporter Leesha McKenney.

      City of Sydney has the highest concentration of apartment blocks in Australia.

      The story mentions a complaint from neighbour in the strata scheme … and it’s in strata where the real battlefield will be.

      The Airbnb concept is designed for people who want to travel cheaply and meet locals from the places they are travelling to.  Like website TripAdvisor it allows tourists to rate and comment on the places they stay.

      The twist on Airbnb is that it also lets the hosts rate the guests.  Steal too many towels and toiletries and you might not get the stars you were hoping for.

      Travellers who use Airbnb swear by it.  They can identify like-minded people who will both rent them a room and introduce them to the delights of their home city.

      Their hosts can similarly pre-select their guests by checking their previous ratings.  It’s all so hip, now and Facebook friendly that it’s hard to see the flaws.

      But how does letting rooms in your flat for a couple of nights sit with council bans on commercial enterprises and strata by-laws banning rentals of less than three months?

      And if the listings are entire apartments in residential strata buildings, you have really crossed the short-term letting line.

      Add the council concerns in Sydney to the stoush in Melbourne over party flats in apartment blocks, and you can see trouble brewing for Airbnb hosts in apartment blocks.

      Check the website for listings in your area and you may be surprised to find how many entire units are available in buildings you thought were purely long-term residential.

      What’s the difference? If you are letting a room in your home, you might think that’s mostly harmless since you are there to deal with any problems that might arise.

      But if, under the guise of touchy feely social networking, you rent a vacant unit in a building that bans short-term lets, you are a strata parasite, plain and simple.

      Too harsh?  Ask the people who find their homes being turned into hotels and the hotel workers who can’t find jobs because of opportunists who think loopholes in strata laws are there to be exploited.

      What do you think of Airbnb in strata buildings?

      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.
    Viewing 15 replies - 1 through 15 (of 24 total)
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    • #19557

      My neighbour rents out her spare room in our Pyrmont strata building through Airbnb and has never had any issues.  She was away once when someone arrived and asked me to meet them.  We had no problems and they were really nice people.  Having met quite a few of her tenants they have been a good calibre of person.  Frankly some of the owners and tenants in our building are absolute grubs.  At least these people will leave.  We have so much trouble with owners owing thousands in strata fees and tenants who don’t care for our building or other residents.  I’d prefer to see some effort put into providing our committee with greater abilities to stop poor behaviour by longer term occupants.

      #19561

      If you believe that short term rentals will fix your issues with poor tenants and unpaid levies you could apply to council for modification of building consent. If zoning and/or development approval does not allow it then the practice is illegal. Full stop.

      #19569
      It appears to me that airbnb is giving the FAIRFAX owned stayz.com some competition as that site is not mentioned in any commentary on this topic and it is a major contributor to this rental problem

       

      Most short term rentals in residential zoned areas are illegal but councils are not game enough to police it – that would be the end of holiday house rentals everywhere.  It is the poor neighbours who have to put up with noisy parties, cars & disturbance – all for benefit of absent landlords
      #19571

      ‘just get on with it’ – thanks for the response.  I was indicating my experience with Airbnb and did not put forward a solution regarding changing building rules for tenancy to remedy it.  I was indicating my preference of dealing with my issues.  I’m sure you have your own strata issues and apportion your own importance to solving them.

       

      “Full stop”.  What does that mean even?  This is a discussion board.  Happy to debate opinion and put up ideas however that is not really an effective way to have a conversation as it comes across as slightly rude.  I will assume however you didn’t intend that.

       

      #19575
      Jimmy-T
      Keymaster
      Chat-starter

        poppy said 

        It appears to me that airbnb is giving the FAIRFAX owned stayz.com some competition as that site is not mentioned in any commentary on this topic and it is a major contributor to this rental problem

        It is not up to the people who run Airbnb or, indeed, Stayz, to police short-term rentals in strata buildings.  The powers exist to fix this problem if the Owners Corporations (or even individual owners) have the desire to do so.

         

        And I resent the implication that I am involved in a plot to bag Airbnb because it affects part of Fairfax. That is contemptible. 

         

        My partner uses Airbnb all the time and swears by it when, for instance, she has to do research trips to Melbourne.  She has already made a very good friend there just by spending a few nights in this person’s house.

         

        I recently planned a trip overseas and intended to rent an apartment using Airbnb.

         

        The problem isn’t Airbnb or, indeed Stayz; it’s the selfish bastards who think they are entitled to rent out their apartments as short-term lets with no regard for their buildings’ by-laws, council zoning or their neighbours’ quality of life.  

         

        However, Airbnb is a little different from Stayz and other rental sites because of the social networking element that might lead people to believe everything is above board when, in fact, their landlords may be flouting the laws.  

         

        If you read enough of the comments on the website, you will eventually come across phrases like “the landlord asked us not to tell the neighbours we were renting …”

         

        Even so, blaming Airbnb and Stayz for short-term lets is like blaming car salesmen for drunk driving.  

         

        The point of my article was that Airbnb has opened up another avenue for short-term letting strata parasites.  That’s enough of a problem without introducing irrelevant (and, frankly, insulting) conspiracy theories into the picture.

         

         

        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.
        #19599
        Millie
        Flatchatter

          Jimmy’s comments about parasites is absolutely ‘on the mark’.  Living in a property where approximately 55 or 163 residential lots are leased short-term is unpleasant and expensive in the extreme. 

          Councils don’t have the funds or staff to actively ‘police’ the situation – it’s up to resident owners to complain to Council and work with them in order to erradicate the blight from a building.

          The bottom line is that short-term letting in a building zoned Residential is Non Compliant.  Your building insurance is almost definitely compromised and you have unlimited liability.  This could mean:  losing your home, all the monies in your bank account, your superannuation funds, all your other assents.

          Is it worth it?

          Get active and start working with your Council and campaigning against this practice now!

          #19602

          Stratafied said 

          “Full stop”.  What does that mean even?  This is a discussion board.  Happy to debate opinion and put up ideas however that is not really an effective way to have a conversation as it comes across as slightly rude.  I will assume however you didn’t intend that.

          No offense intended Stratafied. Merely stating that the issue should be very black & white. Either it is allowed (and all owners therefore would be purchasing with this in mind) or it isn’t (and the multitudes of owners commenting in these pages against short term letting of their apartments are rightly aggrieved and should expect councils to take action).

          #19645
          contactchris
          Flatchatter

            A neighbour in our building short term letting in their place in one of the smaller apartments. I thought it was it was going to be a circus to say the least. But it hasn’t been the case and I was ready to pounce. I have had more problems with longer term neighbours that seem to have an ‘entitlement’ to be disrespect noise and leaving their continual mess in common areas – treating the bin area like a dumping site. How is it that the short term’ers seem to be more reasonable and respectful than some of our rental residents. The holiday makers say good morning and have been very civilised. Go figure.

            #19648

            Good on you contactchris, it’s nice to see a resident defending the much maligned holiday rental business.  I’m sure there are a few ‘parasites’ around, but please don’t assume that everyone who rents their apartment to holidaymakers rather than long term tenants is irresponsible.

            We have no restrictions on the minimum length of tenancies in our building. Having successfully let our house over the summer for some years, when we went looking for an apartment to downsize into (we are ‘expectant’ empty-nesters), the option of using it for holiday lets when we were on holiday ourselves was a key consideration. After we had purchased, we actually designed our renovation of the apartment specifically with that in mind.

            We have previously leased our family home on a long term basis while we were overseas. The experience was not pleasant, particularly having to operate under the incredibly one-sided NSW Rental Tenancies Act which makes dodgy tenants virtually untouchable. After the all-too-common experience of having to reclaim possession of our property when the tenants decided they didn’t want to leave at the end of their lease, we resolved never to do that again. In contrast, our experience with having rented our properties to more than fifty holiday groups over the past few years has been almost entirely positive. 

            If the holiday groups are the correct size for the property, if they are appropriately vetted, (something which is easy to do in these days of Skype and email) and if the conditions of rental are reinforced with a cash bond, holiday rentals are relatively easy to manage and put no undue pressure on permanent residents in the same buildings. Perhaps most importantly, if a holiday group does behave badly (which is unlikely as they usually want their bond back), the landlord can remove them summarily. If a long term tenant behaves the same way, the residents can look forward to a minimum of eight weeks before even the most motivated landlord can get them out.

            #19649
            Jimmy-T
            Keymaster
            Chat-starter

              I don’t deny that there are plenty of well-behaved and decent landlords and short-term tenants (just as the vast majority of long-term tenants are decent and well-behaved).  But if the short-term landlords aren’t prepared to own the fact that some short term rentals are little more than party pads and that they cause immense problems for their neighbours then I’m afraid all the good people will be caught up in the sweep to get rid of the nasty ones. 

              I’ve read all the “voluntary codes of conduct” going and still we get issues like the Watergate building in Melbourne and a block in Sydney that I’ve just heard about where the majority of owners, who are absentee landlords, have kicked all the resident owners off their Executive Committee so they are free to run their short-term lets without interference from the people who have to watch the weekly parade of holidaymakers, bucks parties, hens nights and footie fans.  

              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.
              #19655
              Millie
              Flatchatter

                Waiting to meet a friend in our Foyer today I was asked by someone if I was waiting to ‘check-in’.  When I replied that I live in the property my interlocutor introduced himself as a fellow owner, and I in turn introduced myself.  I was subsequently abused by the other for ‘causing all the trouble’, as I’m very much on the record for trying to verify whether or not short-term letting is a compliant activity in our building (zoned ‘Permanent Residential Accommodation Only’).  As well, the current EC – all active in short-term letting – have told me I’d be “named and shamed” and “hunted down and sued”.  (The ‘naming/shaming’ happens every time the Minutes of EC Meetings are distributed and, yes, there’ve been serious attempts at litigation.) In no uncertain terms was I told by the ‘other’ that he has rented his apartment (on my floor) short-term since ‘day one’ and that I’m – to be polite here in this blog – out-of-order.  I refrained from describing the problems and constant noise caused by this person’s so-called guests and instead asked him if he was aware of the extent of his/our financial liability due to a non-compliant activity in our property.  Again, another mouthful of abuse hurled at me.  Hooplah, what a charming (NOT) fellow owner – wish he actually lived here so he could experience life in our Residential property!

                #19657
                Jimmy-T
                Keymaster
                Chat-starter

                  Sounds like a prime candidate for application to the CTTT for replacement of the EC by a strata manager (of your choice).

                  Gives the lie to the whole myth that short-term lets are merely nice people allowing other nice people to have nice holidays, doesn’t it.

                  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.
                  #19689

                  Is it legal under strata laws for units to be let for short term holiday makers?

                  #19690
                  Jimmy-T
                  Keymaster
                  Chat-starter

                    @Worriedowner said:
                    Is it legal under strata laws for units to be let for short term holiday makers?

                    It is illegal if the building is zoned permanent residential and/or there is a by-law in place limiting rentals to residential lets (normally at least three months).

                    By-laws allowing short-term lets in buildings zoned permanent residential are invalid as you can’t pass a by-law that supersedes a superior law (e.g. planning regulations). However, owners corps can vote to ban short-term lets in their building, even though it may be zoned commercial/residential.

                    So check your by-laws and your council zoning – either of them may forbid short-term lets.  The issue thereafter is how you police it and, as some buildings have discovered, there is so much money to be made from short-term lets that the battle can get very ugly very quickly.

                     

                    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.
                    #19694
                    Whale
                    Flatchatter

                      There’s been a lot of discussion on this topic both here and elsewhere, but I wasn’t aware that there was a zoning of “permanent residential”; just “residential” and the medium and high descriptors within that.

                      I also wonder if a Plan’s Special By-Law banning short-term lets would contravene Sect 49(1) of the NSW Strata Schemes Management Act?

                      Doesn’t affect me personally or the operations of our Plan, but just wondering and seeking clarification!

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