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Short term holiday rentals: are they legal?

The recent craze of Airbnb, Stayz and the like does not seem to be slowing down.  As such, many of our clients and friends are looking for a way to capitalise on the short term holiday letting market.

The regulation of short term rental accommodation to date has been haphazard and lacking conformity across NSW. Legislation is soon to be tabled in NSW parliament to regulate the area.

So, is short term holiday letting legal?  In short, it depends.

The low-down on short term holiday letting:

  • the first thing to check is the Council’s Local Environmental Plan (or LEP):
    • is it a permitted use within the relevant zoning?
    • if not, development consent is required.
  • short term accommodation must not be for more than 45 consecutive days;
  • if the property is a unit – is it permissible under the by-laws?
  • this type of accommodation is different to B & B style accommodation and different requirements must be met if running a B & B.

This is definitely a case of ‘watch this space’.  The NSW Government is due to provide its response in just under a week – we will report back on the outcome and hopefully there will be a more cogent position on this emerging area of property use and the law.