Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

New Victorian Airbnb legislation could negatively impact the unit rental market, says expert

By Tim Neary
23 August 2018 | 1 minute read
forrent house reb 1

RiskWise CEO Doron Peleg said that Airbnb has proven to be a lifeline for investors in an oversupplied Melbourne rental market, but that the new legislation could deter investors from using the platform.

“Airbnb in Victoria helped absorb the large number of rental properties available in the market,” Mr Peleg said.

“One of the reasons investors went ahead with buying these rental properties despite there being a high risk of oversupply, and therefore also low rental returns, was because they knew they could use Airbnb as an alternative to generate rental income outside of the standard long-term rental property cycle.”

Mr Peleg’s comments follow the Victorian government’s move to make Airbnb apartment owners pay neighbours compensation of up to $2,000 for property damage caused by guests, while unruly visitors could face fines of up to $1,100.

He said that when it was introduced in Victoria, Airbnb had a big impact on the rental market, absorbing a “very” large number of properties. 

But Mr Peleg said that the new legislation could serve to deter investors from listing their properties on Airbnb, and this would have a flow-on effect of increasing the pool of rental properties in the “standard” rental market.

He said that this could consequently impact rental prices.

“This legislation didn’t come out of the blue,” the CEO said.

“There’s been lots of complaints and the problems have been widespread, with owners not having to face up to any responsibility for the actions of those staying in these short-term leases.

“But now they can face a fine of up to $2,000. It is certainly going to stop a lot of them entering into Airbnb short-term stays. Interestingly, New York is a good example of how Airbnb can affect the rental market. There, Airbnb is said to be responsible for ‘aggravating’ soaring rents and new legislation aims to significantly clamp down the company’s accommodation listings.”

New Victorian Airbnb legislation could negatively impact the unit rental market, says expert
forrent house reb 1
lawyersweekly logo
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.