Hosting in New South Wales

September 2022

Disclaimer. This page is intended solely to assist you in understanding the regulations you may need to comply with. The information provided here is not exhaustive and may not reflect the most current legal standards. It is your responsibility to ensure compliance with applicable laws. For further guidance, please contact your local tax authorities or consult with a qualified legal or tax professional.

 

On November 1, 2021, the Amendment EPI 414 (Short-term Rental Accommodation) modified the State Environmental Planning Policy (Affordable Rental Housing) 2009 to establish a legal framework for short-term rental accommodations.

For any further questions, you can check these official pages Host obligations and STR accommodation regulation on the official NSW website. You may also contact NSW Fair Trading here.

 

Code of conduct

NSW Faire Trade issued a Code of Conduct. We strongly invite you to read the Code of Conduct before starting your hosting business. This Code sets minimum standards and requirements that you must meet in your hosting activity.

 

Short-term rental accommodations (STRA) conditions

A STRA is a dwelling used to provide accommodation to Guests for a temporary period (less than 90 consecutive days).

  • Zoning rules. All lawfully constructed dwellings that are permitted to be used as residential accommodation in all land-use zones can be used for short-term rental. It includes all typical residential accommodation dwelling types. However, hostels, caravans, tents or boarding houses do not qualify as STRA (and are subject to specific regulation). 
  • Hosted STRAs. STRAs where you are present during the Guest’s stay are unlimited. 
  • Non-hosted STRAs limitationSTRAs where you are absent are limited to 180 days per calendar year in Greater Sydney and nominated regional NSW LGAs. However, stays of 21 consecutive days or more are not counted down under this limitation. 

 

STRA Register

More information about Planning Laws and Premises Register, check this official page

  • Mandatory registration. STRAs must be registered with the NSW Planning Portal. It can be completed online
  • Registration number in all advertisements. You must include the registration number in your misterb&b listing (go to “Edit my listing” > “Legal requirements and taxes”).

 

Exclusion register

NSW Fair Trading maintains an Exclusion Register. You, as a Host, must not offer an accommodation for short-term rentals if you, or the accommodation, is listed in the Exclusion register. 

You may be added on the Exclusion Register if NSW Fair Trading found you to have committed 2 serious breaches of the Code of Conduct in a 2 year period. The inclusion on the register can be appealed - more information here for review of Fair Trading decisions. 

 

Strata by-laws

Owners corporations can adopt by-laws restricting certain types of STRA within its strata scheme. Where such by-laws apply, a strata property can only be rented for a minimum of 3 months. 

  • Exception for owner-occupied properties. You cannot be restricted from renting your strata property (in your presence or not) if it its your principal place of residence. 

 

Mandatory information to Guests

  • Emergency contact. You must give your Guests contact details for an emergency electrical service provider, an emergency plumbing service provider and Australian emergency services.
  • Legal information. You must provide a copy of the Code and the strata by-laws for strata premises to your Guests.

 

Mandatory information to neighbors and COA

You must inform the owners’ corporation, the community association for the strata or community scheme in which your property is located (if applicable), and your direct neighbors, that you use your property for STR purpose. You must also give your contact details (or the authorized representative's ones). 

 

Maintaining compliance

Your hosting activity must respect all local, State and federal laws, including criminal law and planning law. 

  • Insurance. You must maintain an insurance covering their liabilities for third party injuries and death on STR accommodation properties.
  • Contact effort. You (or your authorized representative) must be contactable (i) within ordinary hours to manage guests, the premises, neighborhood complaints and other issues related to use of the premises, and (ii) outside ordinary hours to deal with emergencies.
  • Addressing any potential contraventions to the Code of Conduct. You must take reasonable steps to address any concern raised by any neighbors, Guests or owners corporations / communication associate for the strata or community scheme, about potential Code of Conduction violations.
  • Fire and safety. Units used for STRA must comply with the new fire safety standards enacted by the EP&A Regulation. It includes, without limitations, maintaining an evacuation plan and interconnected smoke alarms. Check here the official factsheet on STRA fire safety standards. 

 

Third-party rules

  • Community rules. You must abide by other contracts or rules binding him, issued by the owners corporation or the community association for the strata or community scheme co-op rules, or other rules established by tenant organizations.
  • Lease contract. If you are a renter, you must make sure hosting Guests do not violate the lease.