Airbnbs provide an excellent means for residents in New South Wales to stimulate the local economy and boost seasonal tourism. If you are considering starting an Airbnb business, you need to be aware of the regulations that need to be followed. Airbnbs fall under the category of short-term rentals, meaning they are subject to the relevant rules and regulations in Australia. This article will discuss the specific guidelines, regulations and restrictions that impact Airbnbs in NSW before and during the operation of your Airbnb business.
1. Before Getting Started
Before getting started as an Airbnb host, you will need to ensure you have registered as a Short-Term Accommodation Rental Accommodation (‘STRA’) on the Department of Planning, Industry and Environment’s STRA register. This requirement applies specifically to residential accommodations like houses, units, and terraces. Registering your Airbnb is a prerequisite before you can start advertising and making your short-term rental available.
Additionally, this registration ensures your compliance with fire and safety standards for STRAs. It is essential to note that if you do not renew your Airbnb property by the expiration date, the registration will remain valid for an additional three months before it is automatically deregistered. Consequently, you must complete the registration process before welcoming any guests to your Airbnb property.
2. Complying With the NSW Code of Conduct
The NSW Code of Conduct for the Short-term rental accommodation industry (‘Code of Conduct’) sets a minimum standard of behaviour and requirements for all Airbnb participants.
The Code of Conduct’s main objectives for STRAs involves:
- protecting the rights and obligations of those engaged in short-term rental accommodation;
- providing methods to resolve disputes and manage complaints;
- outlining the compliance and enforcement approach; and
- facilitating the oversight of the short-term rental accommodation industry.
It is essential as an Airbnb owner that the economic benefits are considered alongside the prevention of disturbance to residential neighbours, particularly if your Airbnb is situated in a lively party or tourist hotspot. Establishing clear guidelines for your guests to minimise noise disturbances is essential to prevent potential disputes or complaints that may arise.
It is recommended that you thoroughly review the Code of Conduct. This will provide you with a comprehensive understanding of your rights and obligations concerning:
- the booking platform;
- letting agents;
- your role as a host;
- guest interactions;
- facilitation of the stay; and
- the procedures for addressing any complaints that may arise during your hosting experience.
3. Responsible Hosting
As an Airbnb host, it is essential that you also follow the regulations surrounding your hosting responsibilities.
Health and Cleanliness
Maintaining a clean and healthy environment is paramount for Airbnb hosts to ensure guest satisfaction and encourage positive reviews. Airbnb offers valuable cleaning tips to help achieve this goal, and the Australian Department of Health also provides recommendations and explanations on cleaning and disinfecting. As an Airbnb host, you must prioritise cleanliness to offer guests a safe and enjoyable stay experience.
Tax
The income you earn as an Airbnb host is considered taxable income, and it may have specific tax implications depending on your circumstances. It is highly advisable to:
- consult with a qualified tax professional to obtain personalised tax advice; and
- gain a clear understanding of your tax obligations related to your Airbnb income.
Regulations
You must be allowed to host guests on your property before commencing with the Airbnb process. Say you are renting a two-bedroom apartment, and you only occupy one room. In this instance, you will need to speak to your landlord and review your contract about the rules and restrictions surrounding subletting before allowing a guest to rent the extra room.
Safety
As an Airbnb host, it is essential to remain communicative with your guests to respond to any potential emergencies that may arise. To ensure your guests’ safety, you should provide them with essential contact information, including:
- local emergency numbers;
- your own contact number;
- a backup contact number;
- details for emergency electrical and plumbing services; and
- the nearest hospital’s contact information.
Additionally, maintaining a regularly restocked first aid kit is crucial. You should also implement fire and hazard prevention procedures. Clearly marked fire escape exits and evacuation maps enhance the safety measures in your Airbnb property.
Courtesy
As an Airbnb host, it is essential to establish clear and respectful guidelines for your guests to promote positive interactions within the community. Make sure to provide your guests with instructions to:
- keep noise levels at a minimum;
- specify rules regarding pets;
- prohibit parties; and
- communicate any specific rules that apply to your dwelling.
Insurance
We strongly advise reaching out to your insurance provider to gain a better understanding of your current coverage. It is crucial to review your existing insurance policy and get in touch with your insurance provider to verify that you have sufficient liability coverage and property protection in place for your Airbnb hosting activities.
4. Consider Booking Restrictions
As an Airbnb host, you will need to be aware of the restrictions placed on dwelling periods. These restrictions depend on whether you are renting a room (hosted) or an entire dwelling (non-hosted). Hosted STRA in a dwelling can be rented 365 days a year, whereas non-hosted accommodation can be rented for 180 days per year in Greater Sydney and nominated regional NSW. Renters will be restricted when booking as well. A single booking can be for up to a maximum of three consecutive months.
Key Takeaways
If you are planning to start your own Airbnb, you need to be aware of the rules and regulations before operating your business. Firstly, you must register with the Department of Planning, Industry and Environment’s STRA register. Then, you must ensure that you:
- follow the Code of Conduct;
- advertise or list the premises consistent with the accommodation;
- hold insurance that covers liability for third-party injuries and death that is valid for the occupancy period;
- remain contactable within ordinary hours to manage guests, the premises, neighbourhood complaints and any other issues related to the use of the premises; and
- must be aware of the hosted and non-hosted restrictions on STRAs.
If you have questions about regulatory compliance for your Airbnb business, our experienced disputes lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.
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