The widespread use of Airbnb and other short-term letting platforms has cost homeowners and investors in just two suburbs in Queensland $740 million over the past ten years, say apartment owners.

Management rights purchasers – appointed without any consultation with or approval of the unit owners – are flouting planning and building laws to run residential buildings as de facto hotels, says the Unit Owners Association of Queensland (UOAQ).

And while the managers are pocketing additional profits on top of their inflated fees, property values are being held back by more than 40 per cent compared to buildings with no short-term lets.

The UOAQ says it conducted a financial analysis of sales in104 body corporates representing almost 16,000 across Brisbane CBD and South Brisbane. It found that in buildings run as de facto hotels, property values have grown 44% less over the 10 years compared to residential-only buildings.

This, it says, amounts to a $740 million loss in property value from 2014 to 2023 — just in those two suburbs.

“Short-term letting in residential buildings by the management rights holders is a growing issue,” says UAOQ. “While it suits developers, governments and management rights holders, it undermines residential amenity and is costing owners millions in lost property sales value.”

The UOAQ has been assisting owners trying to enforce the approved use of their buildings, specifically where buildings that received planning permission as purely residential and definitely not holiday let buildings, have seen their caretaker-managers aid and abet the intrusion of short term lets.

“Brisbane City Council has repeatedly deflected, suggesting the use of buildings is “self-assessable” — ignoring both Planning Law and the National Construction Code,” says UAOQ. “Short-term letting in buildings approved for residential use is an “inconvenient truth” for government — and for those profiting from non-compliance.”

Allegations

“Most residential apartment buyers don’t want to live in hotels. Yet, many buildings sold as residential are quietly handed over to management rights holders who run them as hotels — without the consent of owners,” says the apartment owners’ peak body.

“Australian Consumer Law is ignored. The Building Insurance is voided for usage contrary to planning approval. The new seller disclosure statement does not mention the lawful use.”

The allegations come in the UAOQ’s latest newsletter which includes a guide on how apartment owners can enforce the residential-only status of their blocks and protect their amenity and property values. The information below is from UAOQ, reprinted here unedited and without comment.

How You Can Protect Your Building

“Residential amenity” refers to the safety, community, and liveability of your building. Owners can and should act to preserve it.

1. Review your By-laws for “Residential Purposes only”

Many schemes already have a by-law stating: “All lots must be used for residential purposes only.” The wording is really that simple. If yours doesn’t, a new one can be passed by special resolution at a general meeting.

Yes, this requires strong owner support — particularly challenging in buildings dominated by absentee investors. But it’s essential for enforcement.

While the term “residential use” isn’t defined in the BCCM Act, it is clearly defined in the Planning Act and Building Code, protecting residential amenity and occupant safety.

2. Obtain a “Notice of Contravention of Development Approval”

To support a residential use by-law, engage a professional town planner to review your building’s development approval. This review will:

• Confirm whether short-term letting is a lawful use (in most cases, it is not),
• Provide definitions of approved residential use versus short-term accommodation,
• Strengthen your body corporate’s legal position.

A typical finding from a town planner may include:

“The existing development approval does not permit short-term accommodation. A material change of use is required for such use to be lawful.”

These reviews can cost up to $6-8000, but they provide the evidence needed to take enforcement steps. The UOAQ can assist to locate a qualified professional who has experience in developing this sort of notice.

The report must be circulated to all owners. The report also helps secure support for your existing by-law or to help pass a new by-law.

Note: some older buildings (40+ years) may lack formal development approvals, but for most, the documentation is available from your Council or should be held by your body corporate (as required under the BCCM Act).

3. Enforce the By-law in the Magistrates Court

Once a residential-use by-law is in place, any persistent breach can be addressed formally as a by-law breach. The body corporate can issue a standard BCCM contravention notice. If the owner refuses to comply, the matter can be enforced in the Magistrates Court.

Avoid relying solely on BCCM Adjudication. Adjudicators often misinterpret Section 180(3) of the BCCM Act, incorrectly suggesting that short-term letting qualifies as a “residential use.” But adjudicators are limited to the BCCM Act and cannot consider planning definitions — making the Magistrates Court the better enforcement path.

The Legal and Regulatory Vacuum

In a recent Planning and Environment Court case, the judge upheld a body corporate’s decision to reject a request to change a development approval to allow short-term use. The Judge stated:

“The conducting of the short-term accommodation use by the applicant has resulted in not only a material intensification of the use of the common property but also damage… unlikely to have occurred had this use not been (apparently unlawfully) conducted.”

There is currently no definitive case law guiding enforcement — and Brisbane City Council has shown no willingness to act. In fact, the Lord Mayor and senior Councillors have suggested the UOAQ (a volunteer group) pursue a court declaration to clarify their duties as Councillors. Are they just ignoring the (apparently unlawfully) comment from the P&E Court Judge?

Importantly, a single lot owner cannot apply to change the development approval for just their lot. The approved use applies to the land and building, including common property.

In the UOAQ’s Brisbane study, on-line records only located one building had development approval for short-term accommodation. All owners selling in that building sold at a loss to 2023.

Why Isn’t Government Acting?

Efforts by the UOAQ to raise awareness and advocate for stronger regulation have been largely obfuscated — while the financial and amenity impacts on owners continue to worsen. Write to the Attorney General and ask why? at******@*****************ov.au

Summary: What You Can Do

To preserve the value and residential quality of your building:

1. Review your by-laws for any “residential purposes only”  statement  or consider a special resolution to create a new by-law
2. Engage a qualified town planner to review your development approval and issue a notice of contravention of development approval.
3. Enforce your by-law through the Magistrates Court if breaches continue

The UOAQ can assist with referrals and guidance. Contact our helpline to get started. Contact the Attorney General’s office by email at at******@*****************ov.au

Governments may be reluctant to act — but owners can. Take steps now to protect your home and your investment. you can contact the UOAQ HERE.