How Airbnb hosts could benefit from NSW regulation?
Are you an Airbnb enthusiast, a homeowner or a property investor keen to know more about the NSW regulation of short-term rental accommodation? Check-out this article to find out.
New perspectives brought by future NSW regulation for short-term rental accommodation
You may have thought about listing your property on Airbnb. If you have already done it, CONGRATS! If not, it is time to do it, especially if you are living in NSW.
Why is that? Over the last 18 months, the Legislative Assembly of NSW has been thinking about a way to improve the current regulation of short-term holiday letting. Since the start of disruptive businesses like Airbnb, the sharing economy has taken the NSW government by surprise. Current regulations are not yet adapted to Airbnb practices. As a consequence, new rules to prevent abusive behaviours should be created.
In this month’s report, the Legislative Assembly goes through every aspect of the industry, here are the main points:
• Allow in-house short-term rental
Yes, that sounds great but what does it mean exactly? Every homeowner living in their property (potentially you), who has a spare room or a granny flat and who wants to rent it for a short period of time will be authorized to do so. Today 12 councils in NSW consider home-sharing legal but the Assembly wishes to apply this rule for every NSW council.
• More penalties for party houses
Another great aspect of the report would be to tighten regulations over party houses, wedding receptions or similar events like in Queensland (under The Queensland Sustainable Planning Act 2009). This decision will be effective in the state of Victoria as well. The number of party houses keeps soaring in NSW, especially in Sydney. Thus, the NSW government is willing to move into action to curb this figure. One action they mentioned is to “ban any form of short-term letting for 12 months”.
• More safety measures
This part of the report deals with matters such as installing smoke detectors, creating of a code of conduct, having standards of waste disposal…
Benefits for NSW homeowners
If the NSW government gives its green light (expected in April 2017) regarding the report, all NSW homeowners could list their spare room and granny flat on Airbnb easily. This, without having to meet the former legal requirements imposed by the council they live in. Current and future hosts should receive the change in regulation with open arms with a potential of earning an average of $4,500 per year according to Sam McDonagh (Airbnb Australia’s country manager). “Listing their property on Airbnb would allow them to earn extra income and help them pay electricity bills and mortgages” as Mr McDonagh.
Great news for Airbnb
For Airbnb, this is a big step as the local government of NSW is moving into their direction. Their next meeting is scheduled on the 9th of November, stay tuned! Also if you want to rent your home on Airbnb but don’t have enough time to do it yourself, Urbankeyz team would be more than happy to assist you throughout the process. Click here for additional information.