Understanding Sydney’s Short-Term Rental Regulations

The city of Sydney along with the government of New South Wales in Australia are currently reforming and revising their short-term rental regulations, along with a mandatory Code of Conduct and changes to current strata legislation. The NSW government is also considering the implementation of a short-term rental property register in order to help manage short-term rental accommodations. While the Code of Conduct along with other specifics about regulation are still being refined, the general outlook for Sydney’s vacation rental regulations have been largely defined. 

As the city of Sydney and the region of New South Wales announce further specifics and implementation of the regulations, this article will be accordingly updated. The New South Wales government is currently collecting feedback on its short-term rental accommodation regulations until September 11th, 2019. You can submit your thoughts online using the form at the bottom of this page, or in person at the NSW Department of Planning, Industry and Environment.

Summary of Sydney’s Short-Term Rental Regulations

• If the host is present, they can host short-term rentals all year round and will not need to submit a development application to their local council. 
• If the host is not present, their residence can host short-term rentals for up to 180 days in Greater Sydney, with no daily limit in all other areas of New South Wales.
  • Bookings of 21 days or more won’t count towards the 180-day limit.

Sydney’s Code of Conduct for Vacation Rental Hosts

Along with its regulations, the city of Sydney has introduced a mandatory code of conduct that applies to anyone involved in providing or using short-term holiday letting, whether they’re hosts, guests, letting agents, or the platform themselves. You can find a copy of the current draft of the Code of Conduct here.

The Code of Conduct will have a two strike policy, meaning that anyone who commits two serious breaches of the code within two years will be banned for five years. A strike includes any behaviour which unreasonably interferes with a neighbour’s quiet and peaceful enjoyment of their home, and is recorded on an online register for platforms and property agents to check. Those banned will be put on an exclusion register, and platforms will not be permitted to offer their services to those listed on this register. Offering services to those on the exclusion register can result in significant penalties of up to 1.1 million Australian dollars for corporations and $220,000 for individuals.

The Code has a complaints system, which is available to neighbours of short-term holiday letting premises, strata committees, and owners corporations. Complaints are assessed by independent and impartial adjudicators, and are approved by the commissioner for Fair Trading. Adjudicators will make decisions based upon evidence after giving both complainants and respondents a chance to put forward their case. 

Strata bylaws can prohibit short-term renting, but only for lots that are not a host’s principal place of residence. If a host is sharing their home by offering a shared or private room rental, they will still be allowed to let in this situation, along with being allowed to rent their entire residence while they are away on holidays. 

Renting in Flood and Bushfire Risk Areas

The NSW government is currently working out the specific regulations for short-term rental properties in areas at risk of flooding and bushfires. These rules will include additional safety and emergency evacuation measures for guests staying on the property. You can find a copy of the NSW’s current short-term rental accommodation Fire Safety Standard here.

We cannot guarantee the accuracy of the regulations discussed in this article. Regulations often change on a regular basis, and we advise you to research the current regulations for your location. While we do our best to keep the information updated, if you find an error, omission, or something that needs an update, please let us know.

Useful Links Related to Short-Term Rental Accommodation Regulations in Sydney

While this article covers Sydney’s short-term rental regulations, you might still have more questions related to the developing regulations. You can find more information at the links below. 

New South Wales Government – Short-Term Rental Accommodation Page: https://www.planning.nsw.gov.au/Policy-and-Legislation/Under-review-and-new-Policy-and-Legislation/Short-term-holiday-letting 

New South Wales Government – Short-Term Rental Accommodation Feedback: https://www.planningportal.nsw.gov.au/exhibition/have-your-say-short-term-rental-accommodation-reforms

New South Wales Government – Short-Term Rental Accommodation Regulatory Framework: https://shared-drupal-s3fs.s3-ap-southeast-2.amazonaws.com/master-test/fapub_pdf/AA+Exhibitions+STRA/Discussion+Paper+-+STRA+Regulatory+Framework.pdf 

Draft of Short-Term Rental Accommodation Code of Conduct: https://shared-drupal-s3fs.s3-ap-southeast-2.amazonaws.com/master-test/fapub_pdf/AA+Exhibitions+STRA/Public+Consultation+Draft+-+Code+of+Conduct+for+the+Short+term+Rental+Accommodation+Industry.pdf 

Short-Term Rental Accommodation Fire Safety Standard: https://shared-drupal-s3fs.s3-ap-southeast-2.amazonaws.com/master-test/fapub_pdf/AA+Exhibitions+STRA/STRA+Fire+Safety+Standard.pdf