The NSW Government is currently reviewing the STRA regulations in response to rising rents and housing shortages. While no concrete legislative changes have been enacted for 2025 as of this date, the following key areas are under serious consideration:

What’s Changing in 2025? (Proposed Changes Under Review)

1. Potential Reduction of the 180-Night Cap

1. • A key area of review is the statutory 180-night annual limitation for non-hosted STRA within Greater Sydney. A reduction in this cap, potentially to 90 nights per annum, is being seriously contemplated.
   • Proposals for even more restrictive limits, such as a 60-night cap as advocated by certain local councils (e.g., Byron Bay), may influence broader legislative changes or empower further local council action.

2. Tougher Enforcement and Penalties

1. • The government is considering the implementation of more stringent enforcement mechanisms and increased financial penalties for non-compliance with STRA regulations. This includes, but is not limited to, failure to register, exceeding permissible nightly limits, and breaches of fire safety standards.
   • An increase in proactive compliance audits is also anticipated, potentially increasing the risk for unregistered or non-compliant STRA operations.

3. Enhanced Local Council Regulatory Powers

• • A potential outcome of the current review is the conferral of greater discretionary authority upon local councils to determine and enforce STRA limitations within their respective local government areas.

1. • This could result in significant variations in STRA regulations across different regions, potentially ranging from outright prohibitions in specific zones to more permissive frameworks in others.

4. Consideration of New Levies on STRA Properties

1. • The introduction of a new levy or tax specifically targeting STRA properties is under active consideration by policymakers. This approach mirrors recent developments in other jurisdictions, such as Brisbane’s implementation of differential council rating for STRA properties.
   • The primary policy objective of such a measure is to incentivise the return of properties to the long-term residential rental market.

Implications for Strata Schemes and Lot Owners

The proposed amendments to STRA legislation carry significant implications for strata schemes and individual lot owners:

• Potential Impact on Investment Returns: Stricter nightly caps, particularly for non-hosted STRA, may directly reduce the revenue-generating potential of affected properties.
• Increased Compliance Burdens: More rigorous enforcement and potentially enhanced safety requirements could lead to increased operational costs for STRA hosts.
• Regulatory Uncertainty: The prospect of divergent STRA regulations across different local council areas may introduce complexity and uncertainty for owners with properties in multiple locations.
• Diminished Profitability: The imposition of new taxes or levies would directly impact the financial viability of STRA ventures.
• Differential Impact on Hosted STRA: Properties operating under a hosted model are likely to be less directly affected by the anticipated changes primarily targeting non-hosted arrangements.

Recommendations for Strata Schemes and Lot Owners

Given the dynamic nature of STRA regulations in NSW, it is imperative for owners corporations and lot owners to:

• Remain Vigilant: Continuously monitor official announcements and legislative updates issued by the NSW Government regarding STRA.
• Assess Investment Strategies: Evaluate the potential impact of the proposed amendments on existing and prospective STRA investments.
• Ensure Full Regulatory Compliance: Conduct thorough audits to verify adherence to current registration requirements, fire safety standards, and any applicable local council regulations.
• Engage with Legal Counsel: Seek expert legal advice from strata law specialists to understand the implications of the evolving legal landscape and to ensure ongoing compliance.
• Consider By-law Amendments: Owners corporations may need to review and potentially amend their strata by-laws in response to legislative changes or local council policies.

The anticipated amendments to NSW STRA legislation in 2025 signify a potentially significant shift in the regulatory environment. Proactive engagement with legal counsel and a commitment to staying informed are crucial for navigating these changes effectively and safeguarding the interests of strata communities and individual lot owners.

Easter 2025 and STRA Peak Period: Don’t Let Outdated STRA By-Laws Catch You Out.

Is your strata community prepared for the Easter short-term rental surge? Outdated by-laws can lead to disputes and compliance issues.

IS YOUR STRA BY-LAW UP TO DATE – DO YOU NEED A REVIEW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Is there a need to update your short-term letting by-law?

Major players, Airbnb and Stayz, in the short term rental accommodation (STRA) market have both committed to support the NSW government’s tourism levy by way of a formal submission.

However, both players are calling for all tourism accommodation operators including hotels to also foot the new tax.

The NSW government’s review of STRA is in response to growing calls for stricter regulations on the burgeoning short-term rental market, which has faced criticism for its impact on housing affordability and local communities.

The levy is structured to ensure that larger operators, who derive substantial income from short-term rentals, contribute their fair share to the local economy. At the same time, it aims to minimize the impact on small-scale operators and homeowners who rent out their properties occasionally.

For more information: Airbnb and Stayz Accept Tourism Levy for Holiday Stays

DO YOU NEED TO UPDATE YOUR SHORT TERM RENTAL BY-LAW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Short-term rental accommodation (STRA) in strata properties will continue to be a highly contentious topic in 2023 with even more scrutiny and increasing backlash to the industry because of the current housing crisis.

Since February 2023 there has been a significant rise in complaints about short term letting guests impacting strata blocks due to noisy parties, visitors coming and going, rubbish not being disposed of properly or at all and common property damage, among many other complaints.

Since 2021 the number of New South Wales properties listed as short-term rentals has surged by 42% with over 45,000 listed STRA properties, causing the State’s Planning Minister to review proposed annual caps later this year.

Councils Take Action to Regulate STRA

Many local councils are beginning to take action to regulate short-term letting in their areas introducing a raft of regulations for short-term letting with some councils increasing their council rates for property owners who short-term let for more than 60 days.

The Independent Planning Commission in early May 2023 advised that councils ‘should’ be allowed to impose a 60-day cap on short-term rentals after Byron Shire last year attempted to introduce a 90-day cap.

The NSW government is expecting 12 councils to call for strict caps on short-term rentals.

A decision is yet to be made regarding the capping of STRA properties however this trend is expected to continue in 2023, with more local councils introducing more controls to regulate the STRA letting sector.

STRA By-Law

In NSW, an owners corporation can introduce a by-law that restricts STRA. Many strata building have introduced STRA by-laws that prohibit unlawful STRA and regulate permissible STRA. Anecdotal evidence is that these by-laws have proven effective in reducing problems associated with STRA.

Is it time to review your Short Term Rental Accommodation (STRA) by-laws?

DOES YOUR STRA BY-LAW NEED TO BE REVIEWED? CLICK NOW!

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Deadline for New Rules for NSW STRA 

Here we explain the new rules!

The NSW government has issued a reminder that new short-term rental accommodation (STRA) rules will come into effect on 1 November 2021 coinciding with the return of regional travel across NSW.

These new STRA registration requirements follow the introduction of a mandatory code of conduct governing STRA rentals late last year.

And… most likely these new rules will also require your STRA by-laws to be reviewed!

What is the New Rule?

If you wish to rent a property as a STRA host, it is mandatory to register the property and pay the registration fee via the NSW Planning Portal by 1 November 2021.

What is the Deadline?

The deadline is Monday 1 November 2021.

What is the Cost?

STRA hosts are required to pay a registration fee of $65.00 for the first 12 months and an annual renewal fee of $25.00.

Who Does STRA Registration Apply to?

The STRA registration applies to owners of any residential accommodation who wish to rent their property out for short term rentals.

Do I Need to Provide additional Documentation to Register?

Yes, if the property is not owned by you, you must provide proof of consent from the property owner.

You must also verify that the property is in compliance with the fire safety standards as defined in the STRA policy here.*

*Please note: Given the recent lockdown orders, a grace period has been applied in relation to providing the fire safety standards.

STRA hosts will be able to register their short-term rental as required but delay the fire and safety requirement until 1 March 2022, giving STRA hosts an additional 4 months to adhere with the policy.

Where do I Register my STRA Property?

Your STRA property is to be registered here on the on the NSW Panning Registration Portal.

Do I Need to Update my Short-term Rental Accommodation By-laws?

Most likely, if you live in a strata property the STRA by-laws may need to be reviewed. For advice you may contact our experienced and knowledgeable STRA team here.

Where do I Find More Information on the New STRA Rules?

For more information on the new STRA rules visit NSW Planning STRA Portal here.

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

On the 9 April 2021, the NSW government announced a new statewide policy for Short Term Rental Accommodation (STRA).

The commencement of this policy has been deferred to 1 November 2021.

The new STRA laws will override all short-term accommodation planning laws previously in place throughout NSW, including those enacted by local councils. (until the policy takes effect the regulation of STRA in NSW will continue to be the responsibility of local councils and owners corporations).

The NSW Government has implemented:

• a new statewide regulatory framework for short-term rental accommodation (STRA)
• fire safety standards for STRA dwellings
• a government-run STRA Register
• the STRA Code of Conduct and exclusion register that took effect on 18 December 2020

For full details of the new policy and delays please read New Delayed NSW Short Term Rental Accommodation Policy

For all NSW strata legal advice including by-laws, building defects and levy collections contact us here or call 02 9562 1266, we’re happy to assist.

On 20 October 2020 the Department of Fair Trading announced the mandatory ‘Code of Conduct’ for the short-term rental accommodation arrangements (STRAs).

This Code of Conduct was published in the Government Gazette on 28 October 2020 and is scheduled to commence on 18 December 2020, just in time for the Christmas/New Year festive season and school holidays.

Your strata scheme should take this opportunity to read the ‘Code of Conduct’ and to consider reviewing and if needed, updating its short term rental accommodation by-laws.

This will ensure the changes made to legislation governing this space in April 2020 and now with the publication of the new mandatory ‘Code of Conduct’ are covered.

Especially as the festive season and school holidays are just around the corner – 38 working days until Christmas Day!

In this paper we review the Short Term Rental Accommodation New Code of Conduct

Did you know there are only 38 working days until Christmas day? To ensure the right short term rental accommodation by-laws are in place for the festive season click below now and we’ll be in touch.

Short Term Rental Accommodation By-law

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Do New Strata Laws Thwart Anti-Airbnb By-Laws?

On 10 April 2020, new strata laws commenced. These laws clarify that an owners corporation is able to make a by-law that can prohibit a lot being used for a short-term rental accommodation arrangement in certain circumstances.

However, the new laws may have unintended consequences that invalidate or limit the reach of existing by-laws that prohibit short-term rental accommodation arrangements.

In this article we take a closer look at the new laws and their unintended consequences that seem to have been overlooked… Are new Strata Laws Anti-Airbnb By-laws?

For NSW strata legal, building defects and levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

On 10 April 2020, new strata laws concerning short term rental accommodation arrangements commenced.

These laws give an owners corporation power to make a by-law prohibiting short term accommodation in certain circumstances.

But there are two major problems with the new laws that limit their effectiveness.

In this article we take a look at the new laws and those problems addressing:

• New Strata Laws Concerning Short Term Accommodation
• Background to the New Short Term Rental Strata Laws
• Problem One – Principal Place of Residence Exemption
• Problem Two – Unlawful STRA Arrangement Exemption

So, what are the problems the New Strata Laws for Short Term Accommodation have created?

 For NSW strata legal, building defect or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Need a Short Term Rental Accommodation By-law?

Recent articles published in the press about misinformation of COVID-19 strata laws have stated that short term accommodation arrangements through Airbnb have been banned.

There has also been conflicting information published about whether COVID-19 lockdown laws require an owners corporation to close its recreational facilities such as a swimming pool and gym.

In this short article we answer your questions about those issues and clarify the uncertainty surrounding the Misinformation about COVID19 Strata Laws – Clarified.

For NSW strata legal, building defect or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

The NSW Government proposes to change the laws regulating short term accommodation in NSW.

Recently, the key aspects of those new laws were published for public comment and submissions. The submission period has now closed.

In this article we take an in-depth look at those proposed changes to the laws regulating short term accommodation.

We consider the impact those changes will have on strata laws and planning laws (and strata living) and also review the key features of the Code of Conduct that will regulate participants in the short term accommodation industry.

What are the Proposed New Laws for Short Term Rental Accommodation?

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.