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I have read various opinions on whether holiday & short-term rentals are legal or illegal. Without taking sides, I would like a difinitive answer.
It appears that the majority of fellow users on this forum believe that holiday & short-term rentals can be prevented by passing of a by-law that specifically bans holiday & short-term rentals. However, I am convinced that this is incorrect as I've got legal advice to the contrary as follows:
“A by-law that prohibits or restricts leasing in a manner that is permitted under the applicable planning law (LEP) contravenes Section 49 of the Strata Schemes Management Act 1996.
As long as the zoning of the building does not expressly forbid holiday & short-term rentals, and the renters abide by the usual strata by-laws regarding the noise, etc… the owners engaged in holiday rentals are not breaking the law. Passing a by-law to that effect could be challenged as contravening Section 49 and is therefore a useless and potentially costly tool.
Even if the zoning of the building was to change by council’s amendments to LEP and the by-law was incompliance with the amended LEP, the Environmental Planning and Assessment Act 1979, which overrides (LEP), gives rights for existing use to continue despite the amendment.”
Would anyone offer an alternative interpretation?