In April 2017 the NSW government is going to propose changes to allow for regulation changes across NSW. Hostmybnb is currently working with the NSW government to prevent over-regulation that will put a strain on councils and stratas. As a licenced property management company, we are accredited to handle how the government might mandate short term management in NSW and beyond, we have read through all the submissions and made our own recommendation to the NSW government.
One of the main questions homeowners come to us and ask is: whether Airbnb short term rentals is allowed in Strata and council.
According to the parliamentary report:
If you are the primary resident owner of your home, there will not be any limitations for you to rent out the rooms at your primary address through short term letting platforms like Airbnb and Stayz. This boils down to the classification that homeowners also letting their homes out on vacation are not in the same category as traditional hotel operators, (bed and breakfast., hostels ) Stats highlight that most properties on Airbnb and Stayz are relatively low impact to the community meaning very little complaints to different councils.
We are also persuaded that where an owner lets their principal place of residence for Short term rental accommodation during an absence such as a vacation, this should be permitted as exempt development. As a principal place of residence, the owner will likely be in residence for a majority of the time. While such a let would not be hosted, we believe that it will be of low impact. This is because the dwelling is a private home rather than an investment property or beach house.
We are hoping to help create a national benchmark and standardisation for the way short term rental management is handled from an operations standpoint. One of the biggest concerns with our dealings with strata managers and owners can be narrowed down to the way properties are being mismanaged; whether that is from new hosts who lack adequate hospitality experience or the uncertainty owners face around council and strata regulations.
Our recommendations to the NSW Government:
With the proliferation of Airbnb we see ourselves as a conduit between homeowners and the booking platforms. Our objective is to provide a great guest experience and the platform review system holds us accountable and provides an incentive for us to properly manage all our clients’ properties.
When dealing with a new owner who inquires about our services we always ask them to speak with their strata manager to obtain approval. We seek to work closely with strata managers to build trust and demonstrate that our processes have been developed to alleviate any concerns they may have around short term letting.
Some of the concerns raised by strata managers include:
- Noise complaints handling – we conduct a comprehensive screening of guests prior to accepting their request to book a property we manage. We also provide a 24/7 hotline so that neighbours can contact us if there are any issues.
- Security – Our filtering process helps to understand who is coming in. See our slides “Guest Screening.”
- Cleanliness – We have a detailed check-in and cleaning check list. We also help to report damage to the property on behalf of the owner where required and ensure that rubbish is disposed of in a timely manner in the appropriate bins.
- Wear and tear – Most guests are not transporting bulky items such as sofas. Most of our travellers are here for business or looking to explore Sydney and do not use the property during the day. Cooking is also kept to a minimum. The average stay of our guests is 4 nights and we comprehensively screen guests looking to stay 1 night on a Friday or Saturday.
- On-street car parking – we do not believe that short term letting creates a burden on the availability of street parking in a neighbourhood. We have found that very few of our guests rent a car when travelling around Sydney and more often than not, the host is able to provide their on-premise car space.
- Insurance – Strata managers do not know who is responsible for damage to the building, common areas and accidents which may occur. We frequently make owners aware of the Airbnb insurance coverage and encourage them to speak with specialist short-term rental insurance agencies such as the IAG subsidiary Sharecover to ensure that their cover is adequate for their requirements.
(Airbnb neighbourhoods tool give neighbours power to contact unruly guests)
The nature of property management is changing. Traditional property management companies aren’t suited to be able to provide that level of service, especially because most real estate agencies are more concerned about the ultimate sale and are less likely to be willing to commit the time required to be responsible short term rental property managers. We are also seeing an increase of property investors and buyers potentially looking for properties that they can purchase with the intent of being able to use it for full time short term letting. This will no doubt change how properties are being sold and how owners choose to embrace these changes.
Heavy handed regulations will stifle proper reporting and puts undue pressure on resources from council and strata managers to enforce infractions. We believe Hostmybnb can work within the framework of short term letting to continue being the benchmark and acting as mediator between all stakeholders. We can be the halfway point between over-regulation and none at all, with our understanding of technology and the hospitality industry we believe that we can continue to provide valuable insight to help further aid the government in making a more informed choice towards short term rentals in NSW.
If you have any questions about how we can help bring short term letting in your body corporate or strata please get in touch with one of our short term property managers
