Decipher

CBD3000

The reason behind VCAT taking this action, like it has before in these situations, is driven by section 140 of the VIC OC Act 2006 which states that rules are to be of no effect if the rule discriminates (in the broadest sense of the word) against any owner.

Essentially if the Owner wants to short term lease their unit you cannot ban them from doing so just because you or the rest of the OC don’t want them to.

This rule is designed to void any rules which target certain owners and is there for a very good reason. However this has had a flow on effect with the rise of the sharing economy.

Many rules banning AirBnB or other short term leases I have witnessed enter VCAT recently have been defeated using Section 140.

I also wouldn’t be surprised if minimum term lease rules were also defeated by it.

I take a fairly pragmatic view of the sharing economy and its effect on Strata; I believe if you stand steadfast against the progress of this economy into your buildings I believe it will simply be a matter of time before it steamrolls over you for better or for worse.

The majority of desirable destinations for very short term leases are obvious, inner city complexes with proximity to nightlife, events etc… I cannot believe that an owner would move permanently into one of these complexes solely for the peace and quiet they provide. Surely you too occupy your unit for the same reasons these people want to, so some disturbance is unfortunately to be expected. The majority of short term tenants are also not there to disturb you – they need a place to stay like any tenant.

Because of the lack of enforceability of banning rules dues to section 140 perhaps consider:

•  Informing other owners of the impacts their short term leasing can have on their neighbours, the security of the building etc… 
• Encourage Owners to disclose the intent to short term lease their unit or in very least share/record information about specific tenants (in the case of common property or building damage). 
• Agreeing on a set of OC wide rules/behaviours any short term tenants need to follow that can be provided to them so that they understand not to treat your complex like a hotel. 
• Speak to various experts and even the short term leasing companies themselves (AirBNB has proven open to discussion in the past) to get their perspectives and make yours known.
• Discuss potential rules than can be enforced and/or action that can be taken when things go wrong with your OC Manager or a legal professional.

We regularly live side by side with long term tenants – there is no reason that we cannot live side by side with short term tenants.

Some food for thought at least.