New Short-Term Rental Laws for Strata Schemes

Complaints about unregulated short-term rental guests has led the State Government to introduce new legislation for Strata Schemes in New South Wales.

Since 10 April 2020, Owners Corporations in NSW have the option to introduce by-laws that place restrictions on short-term rental accommodation (STRA) in their building or community. These rules apply to Strata Lots that are not being used by the Host as a principal place of residence.

Find out more about these changes below and how they could affect you as a Strata Owner or Developer.

What are the changes to Short-Term Rental laws?

Limiting short-term rentals

The new By-Law if approved by an Owners Corporation by Special Resolution at a General Meeting seeks to prohibit short-term lettings in Strata Property where the Lot being used as STRA is not the hosts principal place of residence.

The By-Law has no force or effect if the host normally lives at the property. This essentially means that a host can rent out individual rooms or offer the apartment as STRA if they decide to go on a short holiday, as long as the tenants agree to follow the By-Laws of the Strata Scheme.

Changes to tenancy laws

Since 10 April 2020, short-term rental agreements of less than 3 months are no longer subject to Residential Tenancy laws in NSW.

New Code of Conduct and planning laws

The NSW Government is currently revising the Code of Conduct and planning laws for Strata Schemes with regard to short-term rental accommodation. This will include a streamlined approval process for developers and a new complaints process for violations. The Code of Conduct is expected to be rolled out late 2020 or early 2021 and will provide the detail by which STRA can be managed in a Strata Scheme.

You can read more details here.

How are the new by-laws implemented?

 If a By-Law to prohibit STRA in your Strata Plan of interest to your Owners Corporation, we would suggest making contact with your Strata Manager to discuss how this is best implemented by your Strata Plan.

Qualified Strata Managers in NSW

Do you need some help managing a Strata or Community Title Property in NSW? Lake Group Strata has experts covering all aspects of Strata Management, from managing and enforcing By-Laws to organising meetings and resolving disputes.

To find out more about our services across Lake Macquarie, Newcastle, the Hunter Region and Myall Lakes, call our Charlestown office on 02 4942 3305 or our Maitland office on 02 4933 6466.

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