As an Airbnb host in New South Wales, staying informed about the updated Airbnb laws in NSW for 2023 is important. While Airbnb is a platform for short-term rental accommodations, they don’t provide legal advice. Understanding local laws and compliance with regulations falls on you as the host.
At The BNB Agency, we’re here to help navigate these regulations, ensuring your investment property meets all requirements for a smooth and successful hosting experience.
So, let's further explore the details of Airbnb regulations in NSW together.
What's Changed?
Updates to the Code of Conduct (New Government Advice) Related to Short-Term Rental Accommodation
Airbnb hosts in New South Wales must register their properties with the government’s industry register per the new short-term rental accommodation (STRA) framework. This framework also includes planning laws and fire safety standards for STRA dwellings and complements the mandatory Code of Conduct and changes to strata legislation.
The NSW STRA policy framework introduces booking caps for short-term rental accommodation. Non-hosted Airbnb properties in specific areas are subject to a 180-day cap per year, though bookings of 21 or more consecutive days are exempt. Hosted properties are not subject to these day limits.
The short-term rental accommodation cap applies to the following NSW locations:
- Greater Sydney metro region
- Ballina and Bega Valley areas
- City of Newcastle area
- Dubbo Regional area
- Specific land in Clarence Valley and Muswellbrook areas
Under the new Airbnb laws in NSW, short-term rental accommodation is defined as a dwelling used by the host to provide accommodation on a commercial basis for a short period. Most dwellings can be used for STRA as exempt development under these rules. Hosts can confirm eligibility by checking legislation or consulting their local Council.
Byron Shire LGA Exempt
Byron Shire, known for its rural charm, beaches, and cultural diversity, recently updated its short-term rental accommodation (STRA) regulations. From 31st January 2022, non-hosted STRA properties can only be used for a maximum of 180 days per year, up from the previous 90-day limit, while hosted STRA has no such restrictions. All STRA hosts must register their property on the NSW Government’s STRA Register and comply with specific fire and safety standards and the NSW Fair Trading Code of Conduct.
This exemption allows the council to conduct an Economic Impact Assessment to understand the impact of short-term accommodation on the local economy and housing situation.
- Always reply to messages or booking inquiries within 24 hours in the past 365 days.
- Achieving a 90% response rate or higher indicates effective communication and shows potential guests your commitment.
- Use tools and features on Airbnb to streamline communication.
About the Code of Conduct by NSW Fair Trading for Short-Term Rentals
The Code of Conduct by NSW Fair Trading is the newly developed regulatory framework by the NSW Government that governs the following:
STRA Register
- Roles and responsibilities of short-term rental owners and property managers.
- State-wide rules and regulations for consistent planning laws
- A clear and consistent code of conduct to regulate online platforms, hosts, Airbnb managers, other third parties, and guests.
- The development of a mandatory short-term rental register, also known as the NSW STRA Register.
STRA Licencing
To offer short-term rentals in New South Wales, property owners must register their STRA property. This ensures regulatory compliance, improves safety, and maintains community standards.
To register your STRA property, follow these steps:
- Go to the NSW Government’s Planning Portal.
- Create an account or log in with your Service NSW account.
- Select 'New > STRA Registration'.
- Complete the online registration form and attestations.
- Pay the $65 registration fee and submit your form.
After receiving your registration number:
- Visit your Airbnb Host account page.
- Navigate to 'Policies and rules > Laws and regulations > Regulations' on your listing.
- Navigate to 'Policies and rules > Laws and regulations > Regulations' on your listing.
- Enter the registration number in the provided field.
- Save your changes.
If your application is unsuccessful, the NSW Government will provide further assistance.
Registration Renewal
Your registration must be renewed annually via the NSW Government’s Planning Portal. The annual renewal fee is $25 per property. The Department of Planning and Environment will send email reminders 45, 30, and 7 days before the expiry date. If you fail to renew before expiry, your registration will be held for 90 days before being deregistered. Once de-registered, a new registration must be completed.
For more information on renewal, visit the NSW Planning Portal or contact stra@dpie.nsw.gov.au if you encounter any issues.
STRA Requirements for Airbnb Hosts
Under the STRA, Airbnb hosts must meet specific requirements:
- Register your property on the STRA Register via the NSW Planning Portal website.
- Display the provided STRA Property ID number on all online listings.
- Comply with the STRA Fire Safety Standard outlined in the Short-term Rental Accommodation Fire Safety Standard fact sheet.
- Adhere to the code of conduct on the New South Wales Fair Trading website.
- Avoid disruptive behaviour. Repeated disturbances could lead to a 5-year ban from short-term rentals.
Why Has the Government Made These Changes Now?
The government has implemented new regulations to ensure that the economic benefits of short-term rental accommodations (STRA), such as Airbnb, are maintained for local communities while addressing potential negative impacts. Given the rapid growth of the short-term rental industry, including Airbnb properties, it is crucial to strike a balance between its advantages and the needs of neighbours and local communities.
The government has established a well-balanced approach through consultations with the community, councils, and the STRA industry. This approach clarifies the STRA planning system and outlines the responsibilities of all participants, including Airbnb hosts, third-party management companies and guests. The new Airbnb laws in NSW took effect on November 1, 2021.
Potential Penalties for Breaching the Code as Reported by NSW Fair Trading
Breaching the Code can result in disciplinary actions by NSW Fair Trading, such as listing non-compliant individuals on an Exclusion Register. The Code outlines a fair process to be followed before penalties are enforced, providing room for appeals against such decisions.
It ensures that all parties have ample opportunity to understand and adjust to the new legislative requirements before any immediate penalties are applied.
Read more about the implications of the Exclusion Register here.
Complying with Airbnb Laws in NSW with The BNB Agency
The new Airbnb laws in NSW have brought significant changes for Airbnb hosts and property managers in New South Wales. These regulations offer clear guidelines for managing STRA premises and conducting Airbnb business in a way that benefits both hosts and local communities.
However, violating the code can result in severe penalties, so it’s crucial to comply with the rules. In this evolving environment, Airbnb hosts need to stay informed, understand their responsibilities, and adapt their practices accordingly. It’s not just about running an Airbnb business; it’s about making a positive contribution to the community while doing so.
Partner with us to comply with regulations and boost your short-term rental returns. With our experience and local support, we can guide you through short-term rental accommodation laws and changes, effectively manage your Airbnb property, and enhance your business.
Let’s turn challenges into opportunities together. Contact us today, and let’s take your Airbnb business to new heights.
FAQs
New South Wales has introduced new short-term rental accommodation (STRA) laws since December 18, 2020, to strengthen short-term residential tenancy laws. These include a mandatory Code of Conduct, host registration requirements, fire safety standards, and booking caps for specific areas. Hosted Airbnb properties are exempt from booking caps, while non-hosted ones have a 180-day limit per year, with exceptions for long bookings.
The Exclusion Register is a measure enforced by NSW Fair Trading to penalise Code of Conduct breaches in the STRA industry. Breachers may be listed, but the Code provides a fair process with opportunities for appeals before penalties are applied.
The Code of Conduct developed by the NSW Government is designed to provide a regulatory framework for all short-term rental participants and establish clear guidelines for short-term residential tenancy laws.
You should notify your neighbours or the strata/community association about your plan to host on Airbnb. Include your contact details or those of your Co-Host or property management company in this notification. It’s also important to record the steps you have taken to notify your neighbours or the strata/community association about your short-term letting plans.
If you host multiple properties and receive two strikes for a single property, you will be prohibited from booking that listing. However, you can continue hosting your other properties.
If you purchase a property from an owner on the Exclusion Register, you can apply to have the premises removed from the register.
Certainly, an Airbnb management company, such as The BNB Agency, or an independent Airbnb Manager can register on a host’s behalf, given the host’s consent.
