There are three parts to the NSW Government short-term rentals policy:
Part 1 – Strata Schemes
Short-term rentals can be partially outlawed in Strata Schemes (home units, apartments and townhouses) if a strata by-law is made. The strata by-law can prohibit short-term rentals where the property is used as an investment. But it does not apply to owner-occupiers – they are entitled to rent out their property for up to 180 days per year.
Part 2 – Code of Conduct
The Code of Conduct contains ‘responsible renting’ provisions which impose obligations on booking platforms, on letting agents, on hosts, on guests, and on representatives of booking platforms and letting agents. Non-compliance may lead to disciplinary action, including being placed on the exclusion register.
Part 3 – Planning Rules
Local Council permission is not required to use a residential dwelling as a short-term rental, but a whole range of other rules apply. For example:
- A 180 day limit restriction for investment property rentals applies in many parts of NSW
- A rental does not count for the 180 day limit if it is for an investment property and is for at least 21 days
- Minimum fire safety standards apply
- Registration on the Premises Register is mandatory
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