#18887
Millie
Flatchatter

    Let’s talk about the facts on Short-Term Letting (not simply ‘party flats’):

    Living in a block, currently ‘fully booked’ (Wotif and Last Minute etc) thanks to school holidays and a major international Rugby Tour plus others reasons, may I add that those ‘wanting’ short-term letting and Owners Corps/ECs who condone the practise should consider:

    As a lot owner of a residential apartment, it is a breach of the Environmental Planning & Assessment Act for Residential apartments to be used other than for the approved use: fines of up to $1.1 million and a daily penalty of up to $11,000 for each day that the breach continues. (www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/)

    If a lot is leased, the lessor must give notice of the lease to the Owners Corporation within 14 days after the commencement of the Lease.  Maximum penalty for breach – $550. (www.legislation.nsw.gov.au/maintop/view/inforce/act+138+1996+cd+0+N/)

    Body Corporates are bound by the Insurance Contracts Act 1984 (Commonwealth legislation).  “Alteration of Risk Exclusion:  You must promptly advise us…if the nature of the occupation or other circumstances affecting your insured property is changed in such a way as to increase the risk of loss or damage or the likelihood of liability losses.”

    Penalty for non-disclosure and non-compliant use:  reduce or refuse to pay a claim, or cancel your policy.

    When one uses a Residential building for short term letting, this is affecting a Change of Use = ‘refuse to pay a claim’.

    Strata Unit owners have UNLIMITED LIABILITY.  In the event of a major fire or other event, loss of life, permanent injury etc, if the Insurance Company refuses to pay, not only can lot owners, including resident owners, lose their property/home, but investors renting short-term can lose their investment plus their own homes and personal savings, assets etc.  

    Is the above not reason enough to comply with the Residential zoning approval on a building?

    Every single Strata lot owner needs to know the facts.  

    PLEASE:  It seems that there is great, great ignorance and/or short sightedness on this issue.  A major media campaign needs to be mounted, spelling out the facts and life-ruining financial risks involved.