Changes to laws for short-term rental accommodation

Laws imposing new obligations on booking platforms, hosts, letting agents and guests started in NSW on 18 December 2020.

Read more about short-term rental accommodation and how it is regulated in NSW.

Important: The Public Health Order affects holiday rentals and holiday homes by imposing limitations on the number of persons who can be on the premises. More information is available here.

The NSW Government encourages businesses and organisations to complete a COVID-19 Safety Plan where appropriate, even if there is no requirement under the Public Health Order to do so.

What's changed?

Code of Conduct

The mandatory Code of Conduct for the Short-term Rental Accommodation Industry started on 18 December 2020.

The code creates new minimum standards of behaviour and requirements for all participants.

Read more about the obligations for:

Potential penalties for breaching the code

The code creates new disciplinary actions that NSW Fair Trading can take, including listing non-compliant participants on an exclusion register.

The code sets out a fair process that must be followed before a penalty is imposed and the code and Regulation provide for appeals against decisions to impose a penalty for breach of the code.

Read more about the new disciplinary actions at Short-term Rental Accommodation Complaints.

Read more about the Exclusion Register and Fair Trading’s Short-term Rental Accommodation Statement of Regulatory Intent.

What has already changed?

On 10 April 2020, strata and tenancy laws changed in relation to short-term rental accommodation.

Owners corporations can adopt by-laws that limit short-term rental accommodation in their strata scheme, by banning it in lots that are not the host’s principal place of residence.

However, if someone lives in a strata property as their principal place of residence, they will still be able to rent out their home or rooms while they live there, or while they are temporarily away.

Read more about managing short-term rental at by-laws in your strata scheme.

Residential tenancy laws have been changed to clarify that short-term rental accommodation arrangements of 3 months or less are not covered by the residential tenancy laws.

Will there be more changes?

There will be changes to planning laws in mid-2021, including a new planning policy that applies consistent regulation of the use of premises for short-term rental accommodation across the whole state of NSW.

A short-term rental accommodation premises register is also under development for commencement in mid-2021.

Hosts must register their premises once that obligation is mandated by the Department of Planning, Industry and Environment and the register becomes available online.

The Department of Planning, Industry and Environment has more information.

Stay up-to-date

Updates will be made to our website as the changes occur.

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