How short-term rentals are making Sydney's housing crisis worse

The removal of the equivalent of nine World Towers' worth of properties pushes up house prices, land prices and rental prices. Photo: Fiona-Lee Quimby

The removal of the equivalent of nine World Towers' worth of properties pushes up house prices, land prices and rental prices. Photo: Fiona-Lee Quimby

Our vertical villages of tomorrow demand we get the settings right today. Sydney is increasingly a high-rise city, but in the face of modern challenges the laws governing these vertical villages are in desperate need of an update.

With population projections showing NSW will be home to to 9.9 million people by 2036, and 70 per cent of newly approved dwellings estimated to be apartments, we are continuing to grow up at rapid rates.  

The future of short term rentals in Tweed

OUT OF CONTROL: At least 10 cars parked near one of the listed short term rental properties in Casuarina, which has left residents frustrated by the numerous disruptions caused by loud partying in the house.

OUT OF CONTROL: At least 10 cars parked near one of the listed short term rental properties in Casuarina, which has left residents frustrated by the numerous disruptions caused by loud partying in the house.

TWEED residents have the chance to voice their concerns about the future of short term rental sites, like AirBnB and Stayz.

Given the rise in popularity for short term holiday letting (STHL), the New South Wales Government is working to implement strategies to manage the properties that are advertised online and is calling on the community to help in the process.

The government has released an STHL options paper which assesses the possibilities of "greater industry self-regulation, registration or licensing of STHL operators, changes to strata laws and regulation through the planning system”.

Our Strata Community, Our Choice spokesman Stephen Goddard said it was important for apartment residents to raise any concerns they have about STHL.

"Owners' corporations want a say on short-term stays and if it is allowed in residential buildings, and this options paper makes provision for that,” Mr Goddard said.

Sydney inner city residents oppose Airbnb letting as 'full-time investment'

Homeowners are increasingly turning to Airbnb to make extra money. Josh Robenstone

Homeowners are increasingly turning to Airbnb to make extra money. Josh Robenstone

More than 40 per cent of Sydney inner-city residents oppose short term rentals on Airbnb or Stayz as a full-time investment and believe strata should be able to ban short term rentals, a City of Sydney survey found, raising questions about the future of Airbnb rentals as an investment vehicle.

A survey of 1000 residents commissioned by the City of Sydney Council shows the majority of residents supported short-term letting on home sharing platforms such as Airbnb and Stayz if the host was living in the property or if the host was away on holidays.

State government seeking feedback on regulation of short-term accommodation industry

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The state government wants to hear from apartment residents in Port Macquarie about the best way to manage party houses, amenity loss and safety concerns caused by short-stay operators.

The NSW Government’s Short-Term Holiday Letting Options Paper details a range of potential rules to regulate short-stay operators, including giving apartment owners the right to decide on if they’re allowed in their blocks.

Our Strata Community, Our Choice spokesperson, Stephen Goddard, said it was now time for all apartment residents to make their voices heard on the matter.

Airbnb users left hanging for answers by NSW Government

Airbnb watchers were left hanging on Wednesday when long-anticipated proposals for new legislation on short-term holiday lets were put on hold by the NSW government.

Instead of making their position on short-term letting clear, the government stepped back from a parliamentary report and its recommendations that would have allowed a massive increase in short-term holiday letting in apartment blocks.

AIRBNB’S LATEST FRIENDLY BUILDINGS PROGRAM COULD HELP ANTI-HOLIDAY LETTING CAMPAIGNERS IN NSW

Strata fees could fall in buildings that allow owners to list their properties on Airbnb, under a building program launched by the home sharing platform. Photo: Ryan Stuart

Strata fees could fall in buildings that allow owners to list their properties on Airbnb, under a building program launched by the home sharing platform. Photo: Ryan Stuart

As Airbnb ramps up its efforts to avoid being locked out of Sydney’s apartment buildings, through wall-to-wall advertising on the internet, TV and in print, it has produced its trump card  … and it may play straight into the hands of anti-holiday letting strata campaigners.

Its proposed Friendly Buildings Program allows strata building owners’ corporations to sign up to a scheme that allows access to details of the Airbnb lets in their buildings, caps the number of nights they can be let and takes a cut of the earnings.

FIGURES SHOW AUSTRALIAN AIRBNB HOSTS TO MAKE LESS THAN HALF OF WHAT THEY CHARGE

Apartment-owners fare only slightly better, than house owners in the Airbnb profit stakes, likely to make a little over half the price they tend to charge. Photo: Craig Abraham

Apartment-owners fare only slightly better, than house owners in the Airbnb profit stakes, likely to make a little over half the price they tend to charge. Photo: Craig Abraham

People who rent out their houses on Airbnb stand to make, on average, less than half of what they charge, new figures based on the company’s data and checked by the Australian Tax Office (ATO) show.

Apartment-owners fare only slightly better, likely to make a little over half the price they tend to charge, after paying income and Capital Gains Tax when they finally sell their property.

And if either group doesn’t declare their participation in the sharing economy in a bid to avoid tax then they’re “likely to receive a ‘please explain’ letter from the ATO,” warns Mark Chapman, director of tax communications at H&R Block.