by Marshall Cobb - Head of New Projects
AirBnB short term letting always seemed a little selfish to me. No denying that the cashflow for the landlord was terrific, but the experience for the neighbours was awful. Not only from the noise and disruption of the short term holiday makers, but also the reduced value of properties next door (and above and below) when it came time to sell, or even rent them out to a long term tenant. Residential apartment blocks are not designed to be hotels, and it was only a matter of time before legislation was introduced to better protect all parties - and here it is...
1. The NSW government will impose a 180-day cap per annum for an owner to let their property out for holidaying;
2. Strata corporations can ban AirBnB in their buildings for investment properties, but not for owner-occupied residents who want to let their bedroom or whole apartment.
3. There is a 2-strike policy for hosts and guests, and they can be banned from using AirBnB and similar platforms for 5 years. The fines can be up to $1 million for businesses and up to $200k for owners.
That will almost certainly put the brakes on the short term letting market.
The long term rental market is another thing altogether, and we have had great success this year finding quality tenants and good rental income for our property owners. The Sydney vacancy rate is still extremely low, and if you buy a quality investment property, in a good location then you are sure to attract the right tenant.