NSW Fair Trading has introduced the Code of Conduct for Short-term Rental Accommodation to cover the commercial letting of residences up to 3 months at a time, mainly covering holiday letting and Airbnbs. The Code of Conduct will be in effect from 1 June 2021 onwards, affecting all parties involved in these short-term rental arrangements.
Due to the Covid-19 pandemic lockdown, many Australians are choosing to travel domestically to scratch the itch to travel. This has brought an influx of visitors to rural destinations and boosting demands for short term letting. When the travel restrictions are removed, there will also be increased amounts of visitors from all over the world travelling to Australia for leisure.
The Code of Conduct to protects both Guests and Hosts in these short-term rental agreements. With the extra protection, Guests feel safer to travel to different places while Hosts will be more confident in hosting their properties, kickstarting economic activity within the tourism sector.
We have condensed the additional requirements for Hosts and Guests below:
Hosts
- Hosts must now register themselves and the premises on the premises register, and display the registration number on the booking platform.
- Premises must be consistent with the representations made on the advertisements.
- Hosts must have insurance to cover liability for third party injuries and death.
- Hosts or their representative must give clear contact details and be readily contactable.
- Hosts must give inform Strata or the Owners Corporation that they are engaging in short term letting and provide contact details.
- When contacted, the host must address any concerns raised in a timely manner.
Guests
- Must not engage criminal conduct, contravene by-laws, or the terms of the short-term rental accommodation.
- Must not create noise that would disrupt or interfere with the peace or comfort of neighbors and other occupants.
- Must not act in violent or threatening manner.
- Interfere with the use or enjoyment of common property by neighbors or other occupants.
- Must not intentionally, recklessly or negligently cause damage to private or public property.
- Must take reasonable care of the host’s premises and property.
- Must notify host or host’s representative of any disputes or complaints immediately.
Exclusion Register
The commissioner has the following powers when met with a complaint:
- Issue a warning notice.
- Issue a direction to impose conditions or restrictions on the property or the person.
- Record a strike against a host or guest; any guest or host that has received two strikes within 2 years will be added to the exclusion register.
- Record a host or guest on the exclusion register.
Any hosts or guests on the exclusion register will be unable to participate in short term letting for 5 years.
Conclusion
With the recent pandemic, many Australians have been trapped at home for months and the gradual release of restrictions will increase the level of domestic tourism. If you are thinking of becoming a host, or planning to travel as a guest, you will need to be aware of the new Code of Conduct. If you encounter any disputes under the Code of Conduct, or would like to enquire more about short-term letting, please contact us at vincent.hui@sunlaws.com or 02 9267 4988 at any time.
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