‘Toughest laws in the country’: Airbnb party houses facing crackdown in NSW

AIRBNB party houses face the “toughest laws in the country” under a new crackdown — but do the rules go far enough?

AIRBNB has welcomed the New South Wales government’s new “toughest in the country” laws to crack down on bad behaviour in the $31 billion short-term letting sector, but residents groups say the reforms don’t go far enough.

Under the plan announced by Better Regulation Minister Matt Kean and Planning Minister Anthony Roberts on Tuesday, hosts who don’t live at the property will be limited to 180 days rental in the greater Sydney area, while hosts elsewhere in NSW will be allowed 365 days.

There will also be a mandatory code of conduct and changes to the Strata Schemes Management Act, which will allow owners corporations to adopt a by-law, with a 75 per cent majority, preventing short-term letting in their block if the host does not live in the unit.

“Under our ‘two strikes and you’re out’ policy, hosts or guests who commit two serious breaches of the code within two years will be banned for five, and be listed on an exclusion register,” Mr Kean said.

“These are the toughest laws in the country and will make sure residents are protected while ensuring that hosts who do the right thing are not penalised. We have consulted widely with industry and the community to make sure our nation-leading regulatory framework is the very best approach to short-term holiday letting.”

Mr Roberts said the 180 days a year limit “approximately equates to weekends, school holidays and public holidays so we felt this was a fair and balanced approach”. Councils outside the greater Sydney area will have the power to decrease the 365 day threshold.

“Councils outside greater Sydney can decide if permitting short-term holiday letting for the entire year is acceptable for their local communities,” he said. “This recognises the importance of tourism in some regional communities.”

Airbnb host Felicity Stevens, who makes about $30,000 a year renting out a freestanding farmer’s cottage at her home in Sydney’s northern beaches, said the new rules provided some much-needed certainty.

Airbnb global head of policy Chris Lehane.

“I’m really happy that they’ve got some rules in place so we know we’re not doing the wrong thing and breaking any laws,” she said. “We weren’t really sure, we just sort of chugged along and hoped for the best.”

Ms Stevens said Airbnb hosting was now her part-time job, allowing her to earn money as a mum. “I’ve been hosting for about six years,” she said. “If I lose this, I have to go back into the workforce.”

Trish Burt from lobby group Neighbours Not Strangers slammed the announcement, saying the NSW government’s inquiry “completely ignored” concerns of residents. “Our needs must be placed before the business models of multi-billion dollar, foreign-owned booking platforms,” she said.

“There was no mention of ‘platform accountability’ yesterday. Indeed, Mr Kean said that he is proposing to have ‘a negative licensing scheme’ — bad actors will only be noted when they breach a code of conduct.

“We are unable to find any successful punitive action to date, anywhere in Australia, resulting from such a ‘code’.”

Airbnb global head of policy Chris Lehane welcomed the “fair and innovative rules”. “They bring the rules for home sharing into the 21st century and send a clear signal that NSW embraces healthy tourism,” he said.

“The NSW government, like other governments around the world, has recognised that the way people travel and use their homes has changed, and the rules needed to change as well.

“These statewide rules strike the right balance. They protect the rights of respectful and responsible home sharers, while taking a zero tolerance stance on bad behaviour.”

But Eacham Curry, director of corporate and government affairs at HomeAway, previously known as Stayz, said the new rules infringed the essential property rights of owners.

“Holidaying at a beach shack, country cottage or city apartment has been an Australian pastime for decades,” he said.

“These proposals put this important tradition at risk for families and tourists — and deprive many holiday-home owners of income they have come to rely on.

“The proposals announced today could see short-term rental accommodation restricted to six months right across NSW. We fear these proposals will lead to a patchwork of regulation across the state, drive up the cost of accommodation and curtail the economic potential of the short-term rental sector.”

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