Ensure you never miss an issue of the
real estate business bulletin
Problems rising around government support of Airbnb

Problems rising around government support of Airbnb

by Reporter 0 comments

The NSW government has given its support to short-term letting in the state, but several issues still need to be addressed, says one property manager.

 Justin Ferguson Property Specialists principal Justin Ferguson says property managers need to ensure unresolved issues relating to short-term letting are dealt with.

“As the sharing economy of Airbnb continues to boom, there are increasing issues that come with the management and legality of these properties,” Mr Ferguson said.

“Currently, local councils and governments are struggling to keep up with the growth of short-stay rentals and are increasingly put under pressure to implement laws to make this sharing economy explosion fair for everyone.”

Mr Ferguson flagged key factors property managers need to consider about short-term holiday letting:

  • As per the Tenants Union, sub-letting must be approved in writing by the property manager or landlord, This is a process that is largely being skipped by the majority of short-stay rentals, which breaks the terms of the lease, and raises issues of insurance coverage and security.
  • If a tenant rents a room or sublets the entire property for a short period of time and fail to declare their participation in the sharing economy, they may be subject to hefty fines by the council, the ATO and state revenue office.
  • There is a lack of understanding by local governments in each state. The NSW government is yet to enforce legislation for short-stay rentals and only six councils in Sydney allow short-term rentals.
  • The majority of properties available in Sydney are whole residential properties and property managers are concerned that properties are being rented out illegally and disrupting traditional rentals.

Mr Ferguson said the main issue with short-term holiday letting services such as Airbnb is the fact that they are unregulated and “confusing”.

“Increasingly, we are seeing hosts being fined for not declaring their extra income from their rental property, as it is technically ‘unauthorised’,” he said.

“On top of that, the housing market is already in very high demand and challenging to break into without properties being acquired for the purpose Airbnb rentals.”

Problems rising around government support of Airbnb
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?