Short-term rental accommodation was worth an estimated $31.3b in 2016, half that attributed to NSW.
Reform is long overdue.
After years of operating with little oversight, the NSW Government passed legislation in 2018 that would begin to regulate this market. We've lodged a submission on the draft framework, citing changes. Our recommendations include creating and implementing government-run registers, mandatory introduction of landlord insurance and strata insurance and that hosts within a strata building provide relevant information to the owners corporation and occupants before guests arrive.
There need to be strong guidelines for an industry of this size.
TIM McKIBBIN, reinsw.com.au
KEY TAKEOUTS FROM THE REINSW SUBMISSION
- Draft requirements would make it mandatory for smoke alarms to be put in every bedroom of a STRA dwelling. REINSW has recommended against this, and for requirements to instead be consistent with residential properties used for private longer-term rentals
- Under the changes the host would be responsible for "damage to or loss of a guest's or visitor's property", this differs from hotels where the responsibility for damaged or lost items is on the guest and from private residential tenancy arrangements where the responsibility is on tenants. REINSW argues whoever is responsible for loss or damage of items should bear the cost
- REINSW has argued strata insurance must be mandatory to protect the owners corporation against losses caused by STRA activities (regardless of whether the lot owner consented to such activities)
- REINSW recommends the draft Code of Conduct make it mandatory for owners to take out landlords insurance
- REINSW recommends hosts should be required to provide relevant information to the owners corporation and occupants, before guests arrive at their property
- REINSW recommends any host wishing to list their property for STRA should be required to sign up to a Property Register and obtain a registration number after proving their identity, as well as their ownership of the property or right to sublease
- REINSW submits booking platforms should require this registration number, before a host can list their property
- REINSW recommends potential guests must also sign up to a register and provide necessary documents of identification
- REINSW submits both hosts/guests have access to the registers to see whether a host/guest has a strike against them, or if they are listed on the exclusion register
- REINSW submits the government should run and oversee these registers in order to protect privacy and ensure compliance
- REINSW recommends hosts be given a rectification period, before a strike is recorded against them
- REINSW suggests the host register must include a list of all appropriate insurances, the principal contact for the host and any building emergency contact numbers
- REINSW suggests hosts should be required to provide their tax file numbers in the register, to encourage them to declare the income
- REINSW recommends a mandatory statutory review of legislative reforms every three years since they are ground-breaking and new to the industry