NSW government to impose 180-night cap on Airbnb properties in Sydney Australia

Jo312
Level 2
Sydney, Australia

NSW government to impose 180-night cap on Airbnb properties in Sydney Australia

I have just read the NSW Australian Governments minister of 'Innovation and  Better Regulation' Matt Kean's article of restricting Airbnb hosting to 180 days in Sydney. As a regularAirbnb host in Sydney, I find this new policy unacceptable. I haven't reached out to fellow Airbnb hosts in Sydney before and I'm looking for other hosts or guests impacted by this policy. I would like to suggest we collectively meet and decide a way to push back on this policy. 

27 Replies 27

Hi Jo,

 

I too have been disappointed by the policy and am impacted by the decision. I have read that hosts who want to host over 180 days will need to apply for a Development Application (which seems an odd thing to have to do) and it will be interesting to see how difficult this will be to do. It will also be interesting to see how they propose to enforce the 180 day rule (how would they know this?). 

 

I am surprised that the Airbnb response has been that they are happy with the "fairness" of the new policy, I was hoping they would stand by their hosts who operate professionally full time (and are individuals that don't own multiple properties). 

FYI this is Airbnb's official response on Airbnb Citizen (which has in the lead up to the government's decision has tried to mobilise hosts): 

 

https://www.airbnbcitizen.com/home-sharing-gets-the-green-light-in-new-south-wales-airbnbs-most-popu...

 

Interesting that they don't seem to think the 180 day rule is an issue at all. 

 

 

Another Newspaper states otherwise! news stories are not always accurate, read the financial review

 

 

copy from Australian Financial review!

by Jimmy Thomson and Sue Williams

The influential tenants' group behind a study frequently used by airbnb to justify the spread of short-term holiday letting in NSW says  its research has been misconstrued by the online letting agency.

Tenants Union of NSW officials accused Airbnb of cherry-picking the findings to support  its case and denied that they see no problem in the spread of Airbnb-style holiday lets into the residential market.

"We do feel that Airbnb and others are reaching the wrong conclusion from our research," says executive officer Julie Foreman. "We have consistently in our blog posts and research called for regulation and identified impacts on tenants."

The union said Airbnb's presentation of the survey's findings was skewed to make it seem that tenants had no problem with increasing numbers of whole-home holiday lets.

 

"Our position has always been to limit personal use to a reasonable amount – our research suggested 60 days – and ensure commercial operators (everyone else) are regulated through planning," Ms Foreman says. "We are also open to other methods of regulation such as registrations."

 

Airbnb reacted angrily to Ms Foreman's statements about the survey, which is regularly quoted by the company to support claims that its operation has little effect on the supply of rental accommodation and affordability.

It comes as Airbnb faces tougher regulations in NSW that will allow owners' corporations (body corporates) to adopt a by-law – with a 75 per cent majority – preventing short-term letting in their block, introduce a mandatory code of conduct, and give NSW Fair Trading the power to police online platforms and letting agents. Hosts or guests who commit two serious breaches of the code within two years will be banned for five in what NSW Minister for Better Regulation Matt Kean said were "the toughest laws in the country".

Airbnb denies claim

An Airbnb spokesman denied from Singapore that it had misinterpreted the findings of the Tenants Union report.

 

"The tenants' union's and the Grattan Institute's reports independently and separately found Airbnb not to have a material impact on rental market housing affordability," the spokesman said.

"While we have a different perspective about some of their recommendations, we do share the view that there needs to be fair and innovative regulations in NSW, and we'd encourage people to read both reports in their entirety."

The spokesman suggested The Australian Financial Review contact the author of the tenants' union report, Leo Patterson-Ross, for a first-hand perspective.

Mr Patterson-Ross, when contacted, said the tenants' union stood by its executive officer's statements.

 

The Tenants' Union of NSW and Airbnb have been at odds in a number of critical areas. Sixty-day caps on the number of days whole homes can be let, and registration of whole-home lets, are both vehemently opposed by the American multi-billion-dollar agency.

Mr Kean had been swaying between limits of 180 days (three times the tenants' union proposal) and no cap at all.

'Significant setback'

The organisation Our Strata Community, Our Choice – set up to campaign for apartment owners to have the right to decide whether they will accept short-term rentals into their buildings – says the tenants' union's newly-stated position is a significant setback for Airbnb.

 

"This is a body blow to Airbnb's credibility to have the people who wrote a report they rely on so regularly to invalidate criticism of their operations publicly distance themselves from the conclusions they draw from it," says spokesperson Stephen Goddard.

"They quote that report so regularly, saying the tenants' union finds no problems with their operation. But now the tenants' union has come out to say that's not their position at all."

Mr Goddard cites a more recent report from the University of Sydney. "That says the number of Airbnb properties potentially removed from Sydney's permanent rental market with an average vacancy rate of around three per cent amounts to approximately half of the available rental properties, and also risks driving up property values and making homes even more unaffordable."

Ms Foreman also directed the Financial Review to the Tenants' Union of NSW website where a blog defends the survey findings but adds: "There will still be a need to regulate the short-term letting sector."

 

The blog says that with various examples of third parties offering their services to manage short-term letting operations, there is a huge risk the practice will grow, particularly in high-demand tourist areas already struggling with affordability issues.

"This is clearly a problem," it says. "A commercially operated short-term letting business should only be allowed subject to local government approval, and there should be clear guidelines as to what constitutes a 'commercial operation' and the conditions under which it will be approved."

It is also scathing about "Airbnb's oft-quoted claim" that the majority of hosts are everyday

people sharing a spare room for extra cash or having their home looked after while on holiday or out of town for work.

"As far as a corporate narrative goes, it's not a bad one," it says. "But it clearly sidesteps some of the problems that are created or exacerbated by this highly profitable business. If they were genuine about the claim, they could very easily make it true by limiting the number of bookings a host could solicit via their online platform."

 
 
 
 
 
 AFR Contributor
 

Hi Everyone,

 

Just wondering if anyone knows the following.

1/ When does the 180 days start?

2/  How is the management of this being enforced?

3/ Does Airbnb submit info to ATO & council? How does the council know how many days you’re hosting? Or does Airbnb cap you at 180? 

3/ What’s the penalty for going over the 180?

 

any clarity on this would be gratefully received. 

Debbie579
Level 1
New South Wales, Australia

Hi Emily, I am wondering if you have any further info about the 180 maximum night rule per year since you posted in Dec.  The questions I have are - from when to when is it monitored? (Financial year to financial year or calendar year to calendar year?). Who is the body that monitors it? (Sydney City Council and, or Airbnb? We did have to agree at the time via Airbnb terms for information sharing.). What is involved in getting a Development Application... I imagine one has to be registered / fit criteria as a Bed & Breakfast business? Any info you can share would be appreciated.

Hi Jo I read your comment about you veing affected.

 

Basically its been hatching over a year

it started with the hotel industry lobby, then this year hotel industry started offloading their apts with airbnb, next its the hotel industry opening their online bookings with the airbnb model and preparing their lauches.

 

meanwhile back at the ranch......the MPs like Alex Greenwich who lives his life sucking up to housing tenants from Clover Moore past has his ongoing agenda! 

 

You get a donkey premier Glady's who is enjoying her new found power to dictate like some MORON, YES she is embarassing and will never be a good PREMIER no matter how hard she tries. That woman just doesn't have what it takes to LEAD and be a LEADER. 

 

Actually excuse donkey, its an insult to donkies! 

 

Basical;y its a bunch of BOGANS who is ruining and raining on the PARTY

 

A very successful party and .......!!! 

 

So JEAOUS

SOooOOOoooo JEALOUS

There has to be an absolute revolt ASAP I'm happy for you to arrange a meet up!

 

Let us know Jo!

I've been in touch with Airbnb and have a list of other Sydney hosts. I'm going to reach out to them and organise a meet up to discuss this more and to work out a collective plan. 

Sure! I have great ideas and know how to gage the community of hosting. I need to meet you soon and explain. Few of us need to group together and place a petition on CHANGE.ORG

 

I have a degree in PR and crisis management as well as ....!!!

Al95
Level 2
Sydney, Australia

Hi Syl,

I agree with your opinion. I am owner paying mortgage and would like to do whatever it takes to allow Airbnb without strata interference and without cap. Please update me any meetings or lobbying and what to do.

Thanks and regards 

Al 

Brent82
Level 2
West Wyalong, Australia

Hi guys I find this very disappointing as well as why should sydney be any different to anywhere else in nsw it’s really not fair it’s only about rental isssues which is wrong as the rental market is comming down and seems more properties avail for rent 

Al95
Level 2
Sydney, Australia

Hi Jo,

I agree with your opinion. I am owner paying mortgage and would like to do whatever it takes to allow Airbnb without strata interference and without cap. Please update me any meetings or lobbying and what to do.

Thanks and regards 

Al 

My thoughts are that the first step is to write to your local NSW goverment member. The new rules have not been passed in parliament so can still have amendments. What we really need to see is that there will be exemptions allowed to the 180 day rule for responsible hosts.

 

I don't think writing a petition is worthwhile. The numbers of hosts renting out full time is small, and that is to our benefit as the government won't want to be seen to be giving into large numbers of people on this rule. Our strength is that there is a small group of responsible hosts that believe they should be exempt for good reason.