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Short Term Holiday Accommodation Rules Flipbook PDF
Short Term Holiday Accommodation Rules
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New code of conduct to better regulate shortterm holiday rentals Short-term rental accommodation hosts, guests, letting agents and online booking platform operators are now subject to a new regulatory framework. The Code of Conduct was introduced on 18 December 2020 and is enforceable on 1 June 2021 The advent of online accommodation booking platforms has seen a significant increase in short term rental accommodation. Despite the economic benefits that can flow to local economies and homeowners using their property for short term rental accommodation, there can be amenity impacts on residential neighbours resulting from inconsiderate or anti-social behaviour by some short-term rental occupants It is important to ensure that our laws continue to support local economies while ensuring residential neighbours can enjoy the amenity of their homes without reasonable disturbance. This code of conduct responds to this need by establishing behavioural obligations for short-term rental accommodation participants. This code of conduct is mandatory and applies to all shortterm rental accommodation industry participants. To help property owners quickly understand the new Code of Conduct to better regulate short-term rentals, we have summarised the obligations under the Code and the penalties for breaching it: Obligations under the Code: The mandatory Code enforces minimum standards of behaviour for all parties. These are outlined as follows: Guests Short-term rental guests must not damage the premises or common property, or make noise that unreasonably disrupts neighbours. Guests are also obliged to obey behaviour standards detailed in the Code. If guests fail to meet the standards in the Code, they may be subject to a “strike”. A strike is a record of a contravention of the code made against a host, guest, or premises with respect
to a host and identified as a strike. If the conduct of the guest warrants it, they may be placed on the exclusions register. Hosts There are also several new regulations for short-term rental hosts under the Code. Insurance cover must now include liability for third-party injuries and death. And your neighbours must have the ability to contact you about concerns relating to your property between 8:00 am and 5:00 pm seven days a week. As far as guest behaviour is concerned, the host must take reasonable steps to ensure their guests understand the behaviour standards of the Code and make a copy of the Code available to them. All hosts must register themselves and their short-term rental property on a state-wide premises register. Once the premises register is launched in 2021, it is also critical that the host does not rent their premise out to a guest who is listed on the exclusions register. Agents and online booking providers As a letting agent or online booking provider, you must tell your hosts and guests using your service about the Code. You must also let them know how to lodge a complaint under the Code, and communicate any complaint made against them for behaviour that may contravene the Code. And once the premises register is in force, agents and booking providers must record themselves and the properties for which they are responsible on the register. They must not advertise or offer the property for rent if the host or the property are listed on the exclusions register. Penalties for breaching the Code If any parties breach the Code, they could face a range of penalties, such as:
a warning or direction to take or cease certain action
application of a fine
a ‘strike’ against a host, host’s premises, or guest for serious breaches
recording a guest, host or host’s premises on an exclusion register
if two strikes are recorded in a two-year period, guests or their visitors will be listed on an exclusion register and prevented from booking a short-term rental or having their property advertised as a short-term rental, in NSW for five years once the register is officially published in 2021.
You can read the code in it’s entirety by clicking on the links below
Fair Trading Amendment (Code of Conduct for Short-term Rental Accommodation Industry) Regulation (No.2) 2020 https://www.legislation.nsw.gov.au/view/pdf/asmade/sl-2020-634
Code of Conduct for the Short-term Rental Accommodation Industry https://gazette.legislation.nsw.gov.au/so/download.w3p?id=Gazette_2020_2020288.pdf
Please note, our office will be complying with the new regulations. If you have any questions regarding the code please do not hesitate to contact Michelle on 66877888 or [email protected]