Businesses run from homes to be audited amid housing crunch

A citywide audit of how many homes have been converted into businesses and a crackdown on Airbnbs will form part of Brisbane’s strategy to tackle the housing crisis.

Lord Mayor Adrian Schrinner said he would ask council officers to audit homes being used for businesses on busy roads to assess whether they have proper planning approval.

Adrian Schrinner and finance committee chair Fiona Cunningham take media questions about the council budget.Credit: Felicity Caldwell

“Too often we see examples of homes bought and converted to businesses while up the road, designated commercial space sits vacant,” he said in City Hall, delivering the council’s 2024-25 budget on Wednesday.

“If this practice continues unchecked, there’s a risk it will shrink our housing stock while our suburban shopping strips suffer.”

Schrinner said the audit would not target home-based businesses that had the correct approvals.

“I’m talking about properties that were formerly homes which are now completely used by business,” he said.

“It might be a dental surgery, it might be an accountancy practice, or a suburban lawyer’s business.

“There are occasions when this is appropriate. But we need to assess the impact this practice is having on Brisbane’s stock of residential land, particularly on main roads with convenient access to public transport.”

Council does not yet have an estimate of how many residential properties have been turned into businesses.

People hosting short-stay accommodation properties through platforms such as Airbnb in Brisbane will also be forced to get a permit or face a fine.

Council will adopt the recommendations of a year-long inquiry of the sector, and create a new local law requiring property owners to obtain a permit to operate.

The cost of the permit has not yet been decided, and there will be a chance for community feedback on the changes.

Owners would have to prove their property has proper planning approval, and a property manager must be available 24/7.

A council taskforce found long-term residents felt short-term accommodation was causing security concerns, overcrowding in common property areas, and increasing noise levels and anti-social behaviour.

But it also found less than 1 per cent of Brisbane homes were used for short-term accommodation and the sector helped supplement the city’s hotels during peak times, such as major events.

An initial assessment found an estimated 424 short-stay properties operating in Brisbane’s low-density residential areas were unlikely to receive a development or local law permit, and would have to return to the long-term market or face fines.

In other words, Airbnbs may be less likely to be approved for a permit in Brisbane’s quieter suburbs where the impacts could be greater.

“If you’re out in the suburbs and the house next door turns into a mini hotel, that does have impacts on the neighbourhood,” Schrinner said.

“There are certain locations though, more in the inner-city, where there’s a much higher volume of activity anyway, and they’re closer to facilities, it’s more appropriate.”

Previous research has estimated there are about 2250 active short-term rentals in Brisbane.

Finance chair Councillor Fiona Cunningham said bans, or a cap on the number of nights a home can be rented out over the year, were not needed at this stage, given less than 1 per cent of Brisbane properties were being used as short-stay accommodation.

The existing transitory accommodation rates category will continue this year, with the surcharge rising by another 10 per cent.

The top suburbs paying the special rates are Brisbane City (280), Fortitude Valley (201), South Brisbane (185), Bowen Hills (164), Hamilton (100), Milton (83), New Farm (53), Spring Hill (52), Kangaroo Point (50), and Teneriffe (39).

Airbnb Australia and New Zealand public policy head Michael Crosby said a permit system did not necessarily mean short-term rentals would be placed into the long-term market, given many were also someone’s own home.

“Given 40 per cent of Aussie Airbnb hosts rely on the money they earn from hosting to make ends meet, it’s crucial that any permit system introduced by Brisbane City Council doesn’t limit the ability of residents to turn their primary asset into a vital income stream,” he said.