Rate hikes would ‘decimate’ Mornington Peninsula short stay market

Mornington Peninsula Airbnb hosts have wasted no time telling the local council what to expect if it follows Brisbane’s lead and introduces rate hikes for holiday houses.

Lavish short stay properties such as South Hampton in Red Hill can be rented for more than $3000 a night. – Image supplied: Stayz

Most Mornington Peninsula short stay providers would pull out of the market if hit with higher rates.

Holiday house hosts across the region fear the local council will follow the lead of Brisbane City Council, which is considering a 50 per cent rate hike for properties used as short stay rentals.

Brisbane Lord Mayor on Thursday announced “significantly higher rates” on landlords who have “turned homes into mini hotels,” in a bold bid to tackle a shortage of Brisbane rental homes.

Rosebud Airbnb host Floss Butterworth said a similar crackdown locally would decimate the Mornington Peninsula short stay market.

A recent survey of local hosts revealed more than 80 per cent would leave the market if short stay renting became too “onerous”.

The Airbnb Mornington Peninsula Hosts survey also found that just 13 per cent of respondents had previously offered their holiday house as a long term rental.

Of that figure most would not do it again.

“The idea that these holiday houses would be converted to long term rentals if they weren’t offered as short stay accommodation doesn’t stand up,” Mrs Butterworth said.

She feared Mornington Peninsula Shire could make changes to rates or introduce other charges or fees without properly consulting short stay providers.

“Hosts would like to be consulted on how we can help be part of the solution,” Mrs Butterworth said.

‘We see the homeless on the foreshore, we hear about women needing crisis accommodation. We’re part of the community and we want to help.”

Losing short stay hosts would be a “total disaster” Sorrento Chamber of Commerce president Marco Di Pietrantonio said.

“We have millions of visitors every year, especially in Sorrento, and there’s only a couple of options for accommodation.

“Those tourists eat out at our cafes and restaurants and shop as well.

“If there’s nowhere for them to stay, they won’t come. They’ll go to Bellarine (Peninsula) or Yarra Valley instead.”

There are 2900 short stay rentals registered on the Mornington Peninsula, which declared a housing emergency in 2021.

Mayor Anthony Marsh said the council was aware of various trials being conducted by other local government bodies in NSW, Queensland and Tasmania and was “watching with interest”.

However, he said no decisions had been made about potential changes to short stay accommodation regulations on the Mornington Peninsula.

“Any decisions would be made in consultation with relevant stakeholders,” Cr Marsh said.

“There are several levers local governments can pull in an attempt to tackle rental shortages but there are no clear solutions.”

Cr Susan Bissinger said the region benefited from having accommodation “hidden in plain sight”.

“We are fortunate we haven’t had to make any significant financial outlays to provide accommodation, and it would be foolish to hinder the system that has grown organically and is very successful.”

Yarra Ranges Council said it had no plan to introduce a different rating system for short stay accommodation providers.

However, director of communities Jane Price said the council would continue to advocate for a statewide registration system.

“Since 2020, we’ve raised the issue of short stay accommodation with the State Government through the Municipal Association of Victoria (MAV).

“We’ve been advocating for a statewide registration system, to provide a consistent approach across all 79 Local Government Areas.”

Short stay providers do not need to register with Yarra Ranges Council.

Mornington Peninsula shire properties used for short stay accommodation must be registered annually for $300 or risk a $1000 fine.