Laws imposing 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 NSW Government strongly encourages all short-term rental accommodation industry participants to regularly check the COVID-19 Public Health Orders, to see if there are any relevant travel restrictions or restrictions on the number of allowable guests in short-term rental accommodation.
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 (Code) started on 18 December 2020.
The Code creates new minimum standards of behaviour and requirements for all participants.
Read more about the obligations for:
Updates to the Code
The Code of Conduct was updated on 28 May 2021 to reflect that the planning instruments and STRA register would commence in November 2021. Obligations in the Code relating to the STRA register commenced on 1 November.
Further changes were made to the Code in October 2021, to:
- provide that booking platforms are now only required to check that the premises is registered before advertising that premises, rather than both the premises and the host, and
- specify the information that booking platforms must provide to the Department of Planning, Industry and Environment.
Fair Trading has also published an updated Statement of Regulatory Intent to reflect that it will not be enforcing some requirements under the Code relating to the Exclusion Register until the public register becomes available. However, Fair Trading will be enforcing obligations on hosts and guests to not enter into these arrangements if they themselves have been recorded on the Exclusion Register. The public register is expected to be available on 1 August 2022.
Potential penalties for breaching the Code
The Code creates 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 else has changed?
Strata and tenancy laws
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.
STRA Register
From 1 November 2021, most hosts must register their STRA premises on the Department of Planning, Industry and Environment’s STRA register. Relevant properties must be registered before they can be advertised or offered for short-term rental. There are fees associated with registration.
New planning policy
New planning laws were introduced in November 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.
More information on the planning laws and STRA register can be found on the Department of Planning, Industry and Environment website.
Will there be more changes?
The public-facing Exclusion Register is currently under development and is expected to commence on 1 August 2022. Requirements under the Code relating to the Exclusion Register will start when the public-facing register becomes operational.
Stay up-to-date
Updates will be made to our website as the changes occur.
Subscribe to our property eNewsletters for the latest relevant updates:
- Strata and Community Schemes Updates – for anyone who owns, lives in, or works in strata
- The Letterbox – for tenants, landlords and agents
- Property Matters – for property agents