Strata managers want curb on Airbnb and Stayz

Strata managers have called on state governments to tighten controls on short-term holiday lets like Airbnb and Stayz to reduce “significant challenges to community stability, security and cohesion.”

As the popularity of holiday letting grows, the need for clearer regulations and balanced solutions becomes more urgent, especially in apartment blocks, says the Strata Community Association (SCA), the strata managers’ peak body.

The SCA says it wants legislative reforms that empower strata schemes to regulate short-term holiday lets (STHLs) according to their own community’s unique needs. SCA’s proposals include:

• Giving strata schemes stronger legal authority to restrict or regulate short-term rentals
• Clarifying definitions to distinguish between residential use and commercial short-term letting
• Protecting communities while allowing responsible short-term renting

“The rise of short-term rentals is undeniable, but strata communities are bearing the brunt of the negative impacts,” said Joshua Baldwin, President of the SCA. “From increased wear and tear to security risks and community disconnect, the current system isn’t working for many residents. Strata schemes need the power to decide what works best for their unique communities.”

The transient nature of short-term guests often leads to increased wear and tear on shared facilities, security vulnerabilities, noise disturbances and a weakening sense of community among permanent residents. These impacts highlight the pressing need for strata communities to have greater control over how short-term rentals are managed.

Airbnb profits over community needs

As Flat Chat has reported many times over the years, “come on down” attitudes to Airbnb and its ilk – favouring property owners’ profits over strata scheme needs – has seriously impacted communities, from Byron Bay in NSW to Hobart in Tasmania and Melbourne’s Docklands.

In Queensland, some buildings that were designated “residential only” by local councils have been allowed to run Airbnbs and Stayz and their ilk unhindered. This removes the option for apartment owners and residents to escape the state’s ubiquitous holiday let businesses.

“Strata communities aren’t anti-short-term rentals, they’re pro-community,” Baldwin continued. “We’re advocating for a balanced, practical approach that allows responsible renting without sacrificing the security and stability of long-term residents.”

SCA recommends that strata owners and committees take proactive steps, such as reviewing building by-laws, fostering community discussions and staying informed about legislative changes.

It says a complete ban may preserve community cohesion but could limit financial flexibility for owners. On the other hand, well-structured regulations, including minimum stay periods and guest registration, may offer a more practical balance.

The dilemma for strata managers is that more than half of the apartments in Australia are owned by investors – some of whom can make twice as much from holiday lets as residential rentals – while some resident owners may want to let their homes while they are themselves on holiday.

“The goal isn’t to shut the door on short-term rentals entirely,” Baldwin concluded. “It’s about ensuring the door remains open, but on the community’s terms.”

The future of short-term rentals in strata living depends on collaboration among residents, property owners, and policymakers to ensure community wellbeing remains a priority, according to the SCA.