Brisbane City Council urges neighbours to dob in short-stays

With some residents living next to “pseudo hotels”, Brisbane’s Airbnbs are set to become centre of a fresh battle. SPECIAL REPORT

Neighbours are being asked to turn on their neighbours as Brisbane City Council pushes ahead with its plan to slug Airbnb hosts higher rates.

Homeowners will get flyers in their rate notices, which go out this month, encouraging them to dob in their neighbours who use their properties as short-term rentals, as the city attempts to wrestle with a growing housing crisis.

REIQ data shows Greater Brisbane vacancy rates sitting at a record-low of 0.7 per cent, with the Courier-Mail’s Hitting Home Campaign in September leading to the Queensland Premier calling for an urgent summit to address the crisis.

And just last week the Premier put an end to Treasurer Cameron Dick’s land tax debacle that would have slugged renters in Queensland thousands of dollars extra a year.

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Now, Brisbane City Council has officially requested residents to report any residential properties currently rented or marketed for rent through short-term accommodations sites like Airbnb, Stayz and Booking.com, to ensure owner’s are paying the newly increased rate fees which went up by 50 per cent on July 1.

Brisbane City Council is pushing ahead with its plan to slug Airbnb hosts double higher rates.

The 50 per cent rate increase would see an average short-stay landlord having to pay an additional $985 a year, a financial deterrent council hopes will encourage owners to return their properties to the long-term housing market.

Brisbane Lord Mayor Adrian Schrinner said council was not looking to profit from the 50 per cent “Transitory Accommodation” rate hike, but instead encourage more owners to convert their properties back to long-term rentals.

“Brisbane currently has a severe housing shortage, because not enough homes are being built to meet demand,” Mr Schrinner said.

“We want this new rating category to convince owners to return properties to the long-term rental market so they can be permanent homes.
“I’d be happy if this new rating category didn’t raise a single dollar.”

However, according to Airbnb data, the average price for a one-night stay in Brisbane is currently $350 on a weekend and $305 on a weekday, meaning an average annual rate increase of $985 could be covered by just two or three single-night bookings for most short-stay hosts.

Airbnb data shows the average price for a one-night stay in Brisbane is currently $350 on a weekend and $305 on a weekday. Picture: iStock

The Transitory Accommodation rate hike only applies to an entire property offered or used as short-term accommodation for more than 60 days a year.

It does not apply to owner-occupiers who rent out a spare room for short-term accommodation.

Mr Schrinner said council’s decision to increase rates was partly influenced by a surge in residents’ complaints about their short-stay neighbours.

“Some residents have suddenly found themselves living next to ‘pseudo hotels’ and this has created problems,” he said

“Additional complaints cause an increase in compliance costs, which should not be borne by other ratepayers.

“Owners using properties as short-term accommodation are reaping commercial returns so it is only fair that they pay a commercial level of rates.”

Lord Mayor Adrian Schrinner said Brisbane City Council was trying to encourage more owners to convert their properties back to long-term rentals. Picture: Lachie Millard

Owners have been asked to self-report to council by registering their short-stay property on the council website.

But council has also invited other residents to provide information on properties “they believe” fit under the new Transitory Accommodation rate hike category.

Brisbane chair for finance Fiona Cunningham said council would eventually be able to weed out any owners who fail to register themselves by using online search tools.

“We would prefer if people self-nominate, which occurs already when properties shift from being owner-occupied to rented,” Ms Cunningham said.

“However, through technology that’s available, council can identify properties that have been listed on short-term accommodation websites for 60 days.

“This is about trying to push properties back into the private rental market while ensuring those that continue to be used on a short-term basis pay their fair share.”