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Jimmy T has just pointed out something in another forum topic about which I’d completely forgotten. Honestly, I pick up so many pointers from the Flat Chat website – can’t thank the contributors enough!
I live in the most wonderful of buildings, zoned ‘Permanent Residential Accommodation Only’, located in a perfect position, the major problem is that we have large-scale short-term letting, organised and protected by our Caretaker and Executive Committee. And it has been going on for 16 years, in some 40 flats under the Caretaker’s control.
Sure there’s a quick buck to be made by those engaged in short-term letting. The minimum advertised stay here is ‘one-night’ and wotif gives nightly updates on the occupancy rate, which is excellent. But here’s my tally of what the real costs are – and I assure you, there are certainly more items that can be added to the list:
a) A breach of the Environmental Planning and Assessment Act = $1.1 million
b) For every night the breach continues = $11,000 (x 16 years x 365 nights x 40 apartments)
c) For every time a ‘lease’ isn’t registered on the Strata Roll = $550 (x goodness knows how many times someone has checked in)
d) For every time a copy of the by-laws haven’t been issued to those checking in = $100 (ditto above)
e) Plus additional wear and tear on our building, which the Caretaker says is caused by “Residents’ briefcases” (oh, please…!). And we’ve just spent $0.25 million doing up the building and already there’s damage everywhere
f) Plus our building insurance is void due to a non-compliant use:
1) If the building goes up in flames and the insurance is void = $73 odd million lost
2) Plus if the city block across the lane plus the heritage city property across the next lane go up in flames and the insurance is void = $??? millions…heaven help us!
3) Plus if there’s loss of life, loss of city infrastructure etc, etc.
4) The Liability falls on all of us – that’s all of us, every single member of the Owners Corp. There goes our homes, investments, our super funds, our bank accounts – Strata Lot Owners have unlimited liability.
Ah, it’s no wonder I can’t sleep at night.
Strata Reform – HELP! The issue of short-term letting in Residential Buildings wasn’t addressed this week by the Minister for Fair Trading.
Those profitting from short-term letting in Residential Buildings, you obviously have the right of an opnion and I look forward to hearing it.
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@Stumped said:
f) Plus our building insurance is void due to a non-compliant use:
Surely you inform the Insurance company that x units are rented short term and please advise the strata of the increase in premium.
Then divide the extra ammonst the x units and tell them to pay or stop using short term rentals.
This type of situation is rife in large strata blocks with a high proportion of absentee/investor owners throughout the greater Sydney region. It is obviously being permitted by local councils. Very disturbing for individuals who suddenly find that the building in which they have their apartment/home is advertised online as a Hotel. I suspect that the interests of companies who carry out such activities may be protected through their associations with relevant professionals working in the industry. Caretakers play a central role; they are employees of the company and live in an on-site apartment owned by the company, frequently spend most of their time carrying out on site management and care of serviced apartments, perform real estate/letting activities in the building, and along with others represent the company on the Executive committee (due to the company’s ownership of a small but strategic number of apartments in the building).
@Stumped said:
I live in the most wonderful of buildings, zoned ‘Permanent Residential Accommodation Only’, located in a perfect position, the major problem is that we have large-scale short-term letting, organised and protected by our Caretaker and Executive Committee. And it has been going on for 16 years, in some 40 flats under the Caretaker’s control.
I am curious to know if anyone has explored the option of applying to the CTTT for the statutory appointment of a strata manager who would put an end to all this opportunist profiteering fairly promptly, wouldn’t they? It costs $78. It would be neither easy nor straightforward but simpler that trying to defeat fat cats and their cronies using the flimsy structures offered in our strata democracies, I’d have thought.
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.
Your situation sounds very difficult.
Have you approached or considered approaching the Council?
I wonder if the Land & Environment Court might be the place to go since we are talking about a breach of DA?
A stern letter from a lawyer to council pointing out their failure to enforce the zoning & DA condition might also help.
Perhaps you could gather support from a group of owners and share the costs of engaging a lawyer?
Hi Stumped,
Yes, from our experience it seems council and LEP is the way to go. We have had an ongoing problem in our strata block for several years with an owner who runs an online short term holiday letting business. Our block is on Sydney’s Lower North Shore and is exclusively zoned residential. We also have a special by-law in place prohibiting any rental for periods of less than six months. This owner repeatedly flouted this and other by-laws. Recently he recruited the owners of another unit who ‘let’ their unit through his agency over the Christmas holidays to a series of overseas holidaymakers. The EC were basically lied to and told that ‘guests’ would be occupying the unit while the owners were away. Our strata manager was reluctant to act, even obstructive, because he feared “legal action” from the perpetrators. The end result is our EC secretary contacted our local council for clarification. They obliged us with a letter to all residents warning of the consequences of breaches against zoning regulations under LEP laws. This seems to have produced the desired effect in the selfish parasites who indulged in this practice. Nevertheless we remain ever vigilant.
Cheers
We have our AGM tomorrow evening.
I feel as nervous as someone on a first date. Will there be beautiful fireworks, or will there be explosions? Or will I simply be dragged off to the scaffold and…
A date anyone?
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