New high rise on notice for operating as hotel

A new high rise apartment building in the heart of Maroochydore is on notice for breaching short-term letting restrictions by acting as an unapproved hotel.

An application has been made on behalf of 23 owners at The Rhythm on Beach building to use their apartments for short-term letting.

A new high rise apartment building in the heart of Maroochydore is on notice for breaching short-term letting restrictions by acting as an unapproved hotel.

Sunshine Coast company Direct Hotels has been co-ordinating short-term letting at The Rhythm on Beach building since April last year, according to representative Adam Thomas.

Direct Hotels is directed by Malcolm Cayley.

The complex boasts 72 apartments over eight floors with views of the beach, river, hinterland and city.

Sunshine Coast Council issued a show cause notice in September last year to the building's body corporate.

It highlighted a condition of the building's 2016 development approval was that it not be used for short-term letting.

Mechanics launch 24-hour workshop as business booms
More than 1000 postal votes rejected in Caloundra

Determined retiree fights tax office over $100K bill

The body corporate was asked to show cause by October why it shouldn't be issued with an enforcement notice - however the document containing the response has not been made available to the public.

The body corporate was warned that fines of up to $600,525 were applicable for contravening a development approval, unlawful use of a premise and carrying out assessable development without permit.

Direct Hotels operates several other properties on the Sunshine Coast, in Townsville, central Queensland and in Brisbane.

The company is part of Direct Collective which also includes Direct Rentals and First Home Buyers Academy.

In response to the show cause notice, Direct Rentals has lodged an application with the council to turn 23 units in The Rhythm on Beach into short-term accommodation.

The Rhythm on Beach at Maroochydore.

Direct Rentals director Mr Thomas said his company was unaware the property was not approved for short-term holiday letting until the council's show cause notice was received.

Mr Thomas confirmed Direct Hotels has been co-ordinating short-term accommodation at Rhythm on Beach without the correct approval since April last year, which was immediately after completion of construction.

"The owners we represent have asked us as their letting agent to request the code assessable use be approved," he wrote.

"Rather than each individual owner lodging an application, council requested that one submission be made on behalf of all owners.

"We have been in consultation with the committee and many owners after receiving such notice that the disclosed code assessable use was not in place."

Mr Thomas said the response from residents in the Rhythm on Beach had been mixed.

"From having residents request they add their unit to the holiday pool, through to similar frustrations that I suspect most holiday let properties have from time to time," he said.

His company's development application proposed no physical changes be made at the Beach Rd building, just the defined use.

It said if approved, it would allow about 30 per cent of the building to be used for short-term accommodation.

The development application proposed short-term tenants would use the common areas alongside permanent residents.

A council spokesman said the council started an investigation into the use of several units for short-term accommodation at the Rhythm On Beach development in September last year.

"Where development is found to be in breach of the planning scheme, council works with landowners to either seek the necessary approvals (in circumstances where the use is supported by the planning scheme) or provides an appropriate time frame for the use to cease," the spokesman said.

"In this circumstance, the planning scheme zoning allows for both multiple dwellings and short-term accommodation, subject to code assessment, or in this circumstance by a change application.

"The application has been lodged and will be assessed on its merit."

Originally published as