Short-term rental accommodation (STRA) is big business in Australia, worth an estimated $31.3 billion in 2016. 

With around half of that figure attributed to New South Wales, reform to this major industry is long overdue, according to the REINSW. 

The long trek to reform started in 2018 when the New South Wales Government passed legislation that would begin the process of regulating the STRA market. 

Now, REINSW has lodged a submission on the draft framework, citing significant changes.

REINSW CEO Tim McKibbin said, among the recommendations made by REINSW is for the creation and implementation of Government run registers. 

“In order for the new STRA reforms to work as the Government intends, there needs to be a Guest Register and Host Register established in addition to the Exclusion Register and Property Register,” said Mr McKibbin. 

“Booking platforms must require hosts to include their registration numbers as a mandatory field when listing properties. 

"If online booking platforms adhere to the registration system, hosts will have to comply, as they wouldn’t be able to list their property without having a registration number. 

"The registers will also show whether a strike has been recorded against the host or guest, or whether the host or guest has been recorded on the exclusion register. This will leave consumers better informed,” said Mr McKibbin. 

Other suggestions include the mandatory introduction of both landlord insurance and strata insurance and that hosts within a strata building provide relevant information to the owners corporation and occupants, before guests arrive at their property.

Main points from the REINSW submission:

• Draft requirements would make it mandatory for smoke alarms to be put in every bedroom of a STRA dwelling. REINSW has recommended against this, and for requirements to instead be consistent with residential properties used for private longer-term rentals. 
• Under the changes the host would be responsible for “damage to or loss of a guest’s or visitor’s property”, this differs from hotels where the responsibility for damaged or lost items is on the guest and from private residential tenancy arrangements where the responsibility is on tenants. REINSW argues whoever is responsible for loss or damage of items should bear the cost. 
• REINSW has argued strata insurance must be mandatory to protect the owners’ corporation against losses caused by STRA activities (regardless of whether the lot owner consented to such activities)

You can read the full submission here.

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