All of the above is correct. It turns out you can’t have a by-law restricting short-term letting. You can however have by-laws that restrict letting to the terms of the zoning applicable in the Development Approval.
It’s interesting that despite City of Sydney’s vacillation on this issue, its DAs for apartments in residential only zones say specifically that apartments must not be used or advertised for tenancies less than three months (see below).
So, in this case, find out what the zoning is for your building. If it is “residential only” find out what council means by that. Also check what it says about holiday letting (if anything) in your DA.
Finally, tell your strata committee that they can’t have a by-law restricting the length of rentals – or, at least, if they do have one it can be challenged at NCAT and will probably be revoked.
However, they can have a by-law telling owners they must abide by the terms of their council zoning, whatever that may be. Doesn’t it amount to the same thing?
No. Strata scheme by-laws are superseded by superior laws (like council planning regs) but if you depend on the planning regulations to restrict short-stay lets, you also depend on your local council having the wherewithal and will to enforce them.
However, if strata schemes enshrine council zoning restrictions in their by-laws (which is clearly not trying to supersede superior laws) then the strata committee can pursue miscreants themselves without waiting for the council to do something.
Of course, once our MPs have handed the golden egg to short-stay letting agencies by making holiday lets partially exempt from planning restrictions, all our protections will evaporate.
Meanwhile, here is an extract from a Development Approval for a unit block currently under construction in Darlinghurst (my emphasis in bold).
The following restriction applies to buildings approved for residential use:
(a) The accommodation portion of the building must be used as permanent residential accommodation only and not for the purpose of a hotel, motel, serviced apartments, private hotel, boarding house, tourist accommodation or the like, other than in accordance with the Sydney Local Environmental Plan 2012.
(b) A restrictive covenant is to be registered on the title of the development site in the above terms and restricting any change of use of those levels from residential accommodation as defined in Sydney Local Environmental Plan 2012. The covenant is to be registered on title prior to an Occupation Certificate being issued or the use commencing, whichever is earlier, to the satisfaction of the Council. All costs of the preparation and registration of all associated documentation are to be borne by the applicant.
(c) If a unit contains tenants, it must be subject to a residential tenancy agreement for a term of at least three months.
(d) No person can advertise or organise the use of residential apartments approved under this consent for short term accommodation or share accommodation.