Short-Term Letting – the Real Costs

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.