How to ban or provide STRA – legislative update!
What is short term rental accommodation? The NSW government defines it as renting a residential premises for “not more than 3 months at any one time”.
The NSW government has been pursuing the implementation of legal framework for STRA in recent years due to the explosion in popularity of platforms like Airbnb. But the real world operation of short term arrangements was not working well under the traditional residential tenancies legal framework.
In April 2020 the NSW Government passed the Fair Trading Amendment (Short-term Rental Accommodation) Act 2018 (NSW) (Amendment Act) and the new section 137A of the Strata Schemes Management Act 2015 which now govern STRA.
Due to the change, owners corporations may now pass by-laws to ban STRA; however, this is only applicable where the owner does not keep the residence as their principal place of residence (think investment properties). Where the owner does, a by-law may not ban STRA due to the Strata Schemes Management Act 2015 (NSW) and the owner may rent out their units with platforms such as Airbnb.
What this means is that old bylaws you may have passed to control STRA may not be valid and you will need to update these so they address section 137A.
Speak with your strata manager about arranging the changes to your STRA bylaws.