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Calls for tougher state laws on short-stay rentals

Another Melbourne council wants to slap strict rules on short-stay rental hosts and guests. But, with brawls and parties disrupting our suburbs, there’s increasing calls for stronger statewide laws.

Mooroolbark residents on this street are at their wits end about a house being used as a short-stay rental. Spokesman Dennis Hirschfield (centre) with other people who live on the street. Picture: Ellen Smith
Mooroolbark residents on this street are at their wits end about a house being used as a short-stay rental. Spokesman Dennis Hirschfield (centre) with other people who live on the street. Picture: Ellen Smith

A third Melbourne council is considering introducing its own laws to crack down on out-of-control “party houses” as calls mount for the State Government to do more to regulate them.

A Leader investigation can reveal Yarra Ranges, which has more than 800 Airbnb listings, is considering local law provisions to “support residents whose amenity is affected by neighbouring short-stay accommodation”, the council’s director of communities Jane Price said.

The news comes as Frankston Council this week joined Mornington Peninsula Shire in introducing local laws – including registration fees and guest behaviour rules – to regulate short-stay rentals on websites such as Airbnb, Stayz and booking.com.

The shire, which has more than 3000 registered properties, established local laws in 2018 in response to complaints of anti-social behaviour, loud noise, parking congestion and rubbish – receiving 46 complaints this month alone.

The aftermath of an Airbnb party in Werribee. Picture: Nicole Garmston
The aftermath of an Airbnb party in Werribee. Picture: Nicole Garmston

Since then the shire has issued 111 fines and successfully prosecuted two property owners – resulting in the latter owner putting his house up for sale.

Recent incidents across greater Melbourne at short-stay rentals included:

A wild party in Pakenham with more than 300 trespassers that caused thousands of dollars in property damage

A brawl involving up to 80 people that spilt out of a Box Hill North property and terrorised neighbours

A mob of up to 70 youths running riot after booking a house in a Mont Albert North street

Inside Airbnb data reveals there are more than 24,800 properties listed in greater Melbourne – not including tourist hot spots the Macedon Ranges and Mornington Peninsula – on the booking website.

Mooroolbark man Dennis Hirschfield said he and his neighbours feared for their safety, thanks to a listed property in their street.

“We get all these strangers around and very odd behaviour – you don’t know who you are next door to and it affects our day-to-day life,” he said.

City of Melbourne planning portfolio chair Nicholas Reece said the Victorian government needed to regulate the industry with a “clear, fair and cohesive” framework.

The council is estimated to be home to almost 8000 listed short-stay rentals but does not have any local laws regarding them.

“Regulations ultimately need to enable effective management of short-stay accommodation at a state level as the issue affects all property owners and residents across Victoria,” Cr Reece said.

Wild Airbnb party in Cheltenham estate

Stayz corporate affairs director Eacham Curry agreed.

“Rather than local council restrictions, Stayz advocates for statewide regulation that contains a simple registration scheme for all short-term rental listings, a code of conduct that is backed by a strikes-based disciplinary regimen, and an industry body to adjudicate compliance with the code of conduct,” he said.

Victorian laws introduced a year ago empower owners’ corporations to issue breach notices for problems such as excessive noise or health and safety issues.

VCAT has since received five applications under the law – one was struck out, another withdrawn and a third settled at a compulsory conference. Two cases are scheduled this month.

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But Mr Hirschfield said the laws only dealt with issues in high rise blocks and units covered by owners’ corporations – not suburban houses with one owner.

“There is no consistent approach to regulating them,” he said.

State Government spokeswoman Julia Donovan said the laws would be reviewed within two years to determine how effective they were and if any changes were needed.

Airbnb head of public policy for Australia, Derek Nolan, said negative incidents were extremely rare and the company enforced strict policies to remove wrongdoers.

He said Airbnb supported the Victorian laws and was “always ready to sit down with the Victorian Government to discuss how we can work even more closely together”.

Top LGAs for Airbnb property listings

Source: Inside Airbnb and Mornington Peninsula Shire

1. Melbourne
7933
2. Mornington
3026
3. Port Phillip
2971
4. Yarra
2052
5. Stonnington
1620
6. Moreland
1072
7. Yarra Ranges
831
8. Boroondara
726
9. Darebin
713
10. Monash
712

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Original URL: https://www.heraldsun.com.au/leader/calls-for-tougher-state-laws-on-shortstay-rentals/news-story/e6eed5cd0d474122cad2fa56b9fe89d5