Sell with Confidence
Read More
News

New laws to deter short term stay disruptions

By Jamil Allouche

Holidaying across Australia has been forever changed by the entrance of services like AirBnb and Stayz, but as with all rapid progress, it appears that laws have failed to keep up with the new "sharing economy". However, the Victorian government aims to rectify that, by passing new laws that will protect the neighbours of unruly short-term apartment stayers – at the landlord's expense.

A new economy

AirBnb and the like are part of a new kind of property leasing in Brunswick, in which everyday Aussies place their properties up on the web for people looking for a short-term stay outside of regular commercial accommodation.

And it has been a pretty significant part of the Victorian economy, with the state government estimating that short-term renting generates $792 million in revenue and $160 million in wages across Victoria. It also looks like Victorians themselves have taken to the practice like ducks to water, with 170,000 properties in Victoria being leased in this way.

However, problems occur when the tenants of these properties turn their dwellings into persistent party pads, causing a ruckus and sometimes damaging the property of neighbours, particular in apartment complexes. As such, the new laws can slap the landlords of these apartments with up to $2,000 in compensation payments, while guests could face fines up to $1,100.

A hindrance to growth?

However, with short term apartment leasing granting such a huge amount of capital to people like those who own real estate in Brunswick, there are concerns that this new legislation would damage this burgeoning new capital stream.

"Why would a landlord lease it to be trashed? There's no logic," said Paul Salter, short-term property landlord to ABC on 23 May.

"It will have unintended consequences of discouraging the sharing economy."

Are you concerned about this new legislation affecting one of your property income streams? You can help to minimise the risk of damage by getting in touch with one of the property management team members at Ray White Brunswick. We can help you make the most of your rental properties. 

Up to Date

Latest News