Body corporate rules and Airbnb

Mark14
Level 2
Redfern, Australia

Body corporate rules and Airbnb

Hi everyone, my body corporate is wanting to introduce a by-law to ban short term leasing, we have our AGM next month. Has anyone else living in a strata experienced this with their body corporate and if so how did you fare? There are 5 of us in my building that are Airbnb hosts and we all want it to continue. I am buoyed that the NSW Government will embrace the sharing economy. I would appreciate any advice from hosts who have been in a similar situation.


Have a great day everyone.

31 Replies 31
Sharon45
Level 1
Wollstonecraft, Australia

Hi Mark

 

We find ourselves in a similar position. We rent out our entire apartment in Sydney's lower north shore via AirBnb and have done since December 2015. We also live in another apartment within the same complex. Our neighbour is actually on the EC and, in an attempt to stop us, registered a complaint at one of the EC meetings which has now led to a Solicitor being engaged to draft up and register a special by-law banning short term rentals.

 

I'm hoping that we still have time to prevent this from being adopted. When I was doing previous search on this topic within the AirBnb Groups, I did come across a useful post provided by a Host who has property in the Potts Point area. We're going to try to use this for our defense. You, and others, might find it useful also: 

 

"Strata's currently do not have the power to regulate on who stays and for how long. "The Strata Schemes Management Act 1996 provides that no by-law is capable of operating to prohibit or restrict a dealing with a lot (section 49)," says the official submission from the Premier's Offices. "This means that an owners' corporation cannot seek to restrict a lot owner from offering short-term accommodation in the owner's lot."  This could change in the future but currently they do not have the power.

- Let the Strata know that you are not an absentee landlord like those who often rent to students and are are in the building each week ( or however often as the case may be).

 

We are just at the beginning of our battle and sincerely hope that the above makes a difference. However, I'd be very interested to find out what other options are available.

 

Rgds

Sharon

 

 

 

 

 

 

Sean58
Level 1
Dulwich Hill, Australia

Hi Sharon,

 

Was just gonna check in to see how your battles with Airbnb in your unit is going?


I'm experiencing the exact same thing as everyone on this thread at the moment and a draft-law banning Airbnb will be put up to a vote during an EGM happening in a couple of weeks.

 

I'm a live in host that takes great pride in how I maintain my home and run my Airbnb with a high level of respect and consideration for all other residents in the building.

 

I was obviously not too pleased about this and was gonna do some serious lobbying with other owners of the building to help them understand what Airbnb actually is all about 


I was just advised by the chairperson this morning that even if the by-law gets voted in by 75% of attendees to the EGM, they still technically can't ban you as per what you pointed out in "The Strata Schemes Management Act 1996".

 

My question is FACT or FICTION? As this will influence whether or not I go on my bible salesman spree with every owner occupied unit in my complex.

Anna26
Level 2
New South Wales, Australia

We went through this dreadful process with our strata earlier this year, they ended up hiring law firm to draft by law and then banning short term stay in our block and even advertising it - too many voted for it unfortunately. Our understanding of laws at that stage was that they cannot override more general laws (such as strata act) and in the event of government amending general laws and allowing Airbnb, we will be again good to go, on general terms that will be introduced. I am also aware of that section of strata scheme telling that by-law cannot interfere with dealings with the property but we also have to be aware, that most areas in sydney are zoned Residential which means no short stays anyway. As of today, Airbnb is still not regulated in Sydney, not thay I am aware of.

Nathan-and-Aleesha0
Level 2
Queensland, Australia

Hi everyone, we have been happily renting out our unit in Brisbane until we had a roudy and inconsiderate group come through. Playing guitars late at night made for very annoyed neighbours and one is the body corp chairman. We have been told the same thing we can't operate airbnb from our unit. I questioned it with the body corp managers (an external firm) and he admitted under the strata title act and body corporate management act they only really have powers over common areas but can cause you a heap of trouble with those rules.  Funnily he said they are engaging a solicitor to represent the members to address the issue. I am considering going back now and saying if the body corp is paying for legal fees to investigate me (because they are entitled to representation) then I want representation to investigate if I can do it. Doubt that will go down well. 

 

I have investigated with Brisbane Council and we are zoned for short-term accommodation but the building doesn't have a permit to operate in that way. I was told I could apply but the fee is around $4200. It appears there have been some other states relaxing the laws around this - maybe we should start banding together to see what we can do about it? Like Uber - wouldn't it be of interest to airbnb to help?

see below

http://www.smh.com.au/business/property/apartment-dwellers-lose-out-as-airbnb-here-to-stay-court-rul...

 

Keen to chat.

Aleesha

I am keen Aleesha.  We live in Gold Coast and have been facing this music for about 6 months now.  We have been hosting with airbnb for 2 years now, and we have had one muslim family swim in the pool fully clothed (with head cover), nonetheless, i was told that they were wearing the "burkini" which is muslim swim attire.  

about a year later, my friend stayed at my unit in between houses, and had a moving van in.  I have been told now that moving vans are not allowed without permission, which I didnt know.

 

I know by law, the Body Corp cannot do anything about it, but I am worried nonetheless.  our airbnb rental is our primary source of income.

 

Jelita

okay, I just had some communication from my body corporate as well as Gold Coast city council.

 

Basically after some of my own research on the internet, i wrote to the body corporrate that I would be continuing my business of renting out my unit for shortterm, citing a few of the by-laws that mention that tenenats are allowed this and that.  Also citing a clase that tenants are people staying at a property with permission from the owner.  I stated that as long as QLD law says its okay to rentout short term, I would be doing so.  I also mentiond that when I loved out of this unit in 2014, I had filled in a form stating that the unit would be used for short term rental.  This was 3 years ago.

 

The body corporate responded that my email is "noted".

 

2 weeks later i get a letter from Gold Coast City Council saying that they would like to visit and see my unit, or if I am wanting to know more, I should call them.  I called, and the person in charge asked me some details.  Apparently, GC city council have passed a law that those who have been running short term stays before February 2016 are okay to continue.  Those who started after that need to get written permisiion from the council.

 

So I am now officially in the "legal" side of short terms.  Unless of course, someone from the body corporate decides to find some othe reason to bother me.

 

 

I would ask the council to justify that cost $4200 for what. All council fees must be transparent and show costs for fees .

Max68
Level 1
New South Wales, Australia

Mark,

What is the latest in NSW? I am looking at buying a unit in Darlinghurst but will only proceed if I can Airbnb it. Max

Max,

 

I would check the by-laws closely when you do the due diligence on the property to see if they have anything regarding short term leasing or if they have been discussing it in the minutes of the executive committee meetings.

 

The government hasn't done anything yet.

 

Mark

 

I found this online today http://www.domain.com.au/news/strata-and-hotelier-communities-furious-as-holiday-let-report-sweeps-a...

 

Looks like we can now walk confidently forward using AirBNB for entire apartments short term?

 

Mike

Lito0
Level 2
Canberra, Australia

Hi,

I'm a host based in Canberra. My Body Corporate Manager just notified all residents that AirBnb is now prohibited.

Reasons:

- It can be argues it falls under Commercial Short Term letting

- It has impact on the insurance coverage for the complex and can lead to fines under the Land Planning Act

- It can also create security issues

At this stage, it is just a resolution, which can be argued as members of the committee as represented by proxies (usually RE agents). No attempt to introduce by-laws yet.

Has anyone had any similar experience here in Canberra?

Cheers.

Hi 

I too am experiencing the same issue with hosting in Canberra. 

My body corp has just sent a letter outlining the same restrictions. 

 

Also pointing out that the common areas could experience added maintenance. Absolutely absurd, given that if I had a permanent occupant or a flat mate, it would make no difference to the use of the common areas.

 

The letter also asks us to provide evidence of planning consent. If we can't provide that they say we must immediately cease short-term letting!

 

Small minded individuals who have nothing better to do than to sit on a body corp board and dream up ways in which to restrict any form of futurist development in Canberra!

 

I intend to firstly find out from Planning and Environment what, if any are the rules in Canberra on Airbnb rentals. Secondly I feel the ACT government need to get with the times and move to allowing Airbnb to exist with perhaps some guidelines,  similar to how they accommodated Uber into Canberra. 

 

Perhaps if more people in the community who are also have issue with their body corp and hosting, were to come forward,  we could perhaps jointly confront ACT Government. 

 

Any thoughts on this would be appreciated. Thanks for bringing this topic to the forefront. 

 

Amanda 

 

Hi, I was informed today by Independent property group that they're not happy with my listing in Kingston. I told them it'd be hard to police as Airbnb wouldn't take the listing down if you asked them to. What do you think? 

Maxine11
Level 2
Brisbane, Australia

Hi There

I have been hosting for 12 months our property on the Sunshine Coast.

Last week I requested permission of the Body Corp to mount a key safe next to our mail box.

I have personally been locked out twice but the BC have taken it upon themselves to do some investigating.

The Chairman whom lives in the complex approached my guest and it was confirmed I was a Airbnb host. 

I had checked the BC bylaws before hosting and there is nothing mentioned regarding short term letting.

There have been no complaints and I have strict filters ensuring I get the kind of guests we are all seeking (so far so good).

Anyway, the latest is, the comittee are writing to the BC to check what implications I am having on the insurance/security ect.

The  chairman is a tyrant and likes to think he owns the entire complex, he's difficult and a general pain in the bum.

I am certain he will be intent on adding a new bylaw that will try and prevent me from further hosting.
I have read lots of info in the community centre and I'm hoping that some of your experiences will assist me in pursuing this matter in order to continue what I love doing 🙂

Any tips would be much appreciated.

Regards to you all x

HI, 

I don't know if my reply will really help you, but I thought I would just share my experience here.

 

I moved out of my unit in Gold Coast in 2014, and decided to use the unit for short term rental on airbnb.  I filled in forms indicating that I was going to do short term rental, and nothing was said.

 

In 2016, I had a similar experience to you... that is the body corporate somehow did some investigating and sent us an email basically saying we couldnt have short term renters etc etc, and cited a couple of by-laws, very general ones, like guests are not allowed to use the pool without owners or tenants present and a few more.  Bottom line is, the body corp was being a pain, and I honestly knew that many others were doing plenty things wrong like sub-letting their garages to have people stay and all that, but for some reson, when "AIRBNB" is mentioned, they go all beserk!  

 

Anyway, several emails back and forth and lots of on-line "bullying" on their part (eg: "failure to stop may mean we send you this contravention notice and that contravention notice"  and "you may be charge with...")

 

Anyway, after being anxious and tense for a few months between each email and spending hours researching, I realised the use of the word "may" and wondered if they possibly have no right to say what we do with our property? I did some research online and found that I was quite possibly right!   So I sent a last email saying that I will continue with what I am doing, because as far as I know, short term letting is not against QLD law and if they feel it is, please let me know.  I will continue until I am told otherwise.

 

Following that, the body corporate went quiet and suddenly we receive a letter from Gold Coast City Council (GCCC) saying that we have been reposrted to be in breach of usage of property, and they wanted to make an appointment to visit the property.  I called them, and apparently they had already visited.  They had a look at the grounds and didnt enter the property of course.   All he asked me on the phone was when did we start, and I said in 2014.  He said that GCCC laws had recently changed, and now (after February 2016) anyone wanting to do short term needs to get permission, but I was ok since I started in 2014.  They followed with a letter saying that I am approved to run short term rentals at my property.

 

What a relief!

 

They must have sent a letter to the body corporate as well since they havent hassled me at all since that time.  This was about 2 months ago.

 

Now I live in peace 🙂

 

Hope this was helpful and wishing you all the best