Is renting out your IP through AirBNB legal?

Yep, councils get dragged kicking and screaming into this when rate payers complain.
There are an increasing number of Airbnb hosts (and Stayz etc) in the eastern suburbs getting attention from the council. In just about every case, it would relate to an apartment. The person making the complaint would be a resident, and the culprit would be someone not residing in the apartment and renting it out for short stays.
To be honest, I have some sympathy for the people complaining in those situations. I wouldn't like to live in a flat in Bondi and every weekend have the apartment across the hall occupied by a different group of people often there to have a bit of a party.
It's similar to the problems in places like Byron and the Central Coast where councils have had to move against 'party houses'.

My take on it is this:
As Thatbum said, it's a planning issue. When councils act, they fall back on what is or is not permitted by Section 149 of the Environmental Planning and Assessment Act. 'Tourist accomodation' is a prohibited use, as are well over a hundred other possible uses for a property: boat ramp, airstrip, cemetery etc.
Permitted with consent, among a dozen or so other uses, is 'bed and breakfast accommodation'. And of course, 'with consent' means people need to put in a DA and do some pretty silly things to their property - including having a commercial sink in the kitchen that is just for washing hands. (I know a lot of Airbnb hosts and nobody provides breakfast.)
Councils have their own LEPs (Local Environment Plans) that are specific to their areas, but short term accommodation has never been an issue significant enough for them to have to think about how they will deal with it. Councils in beach suburbs are going to have to tackle it.
 
Interesting....how expensive and difficult is it to get an accommodation provider / b&b licence anyway?
No conversions required for accom i hope? B&b conversion sounds more hassle than it's worth.
 
Interesting....how expensive and difficult is it to get an accommodation provider / b&b licence anyway?
No conversions required for accom i hope? B&b conversion sounds more hassle than it's worth.

At its core, it could be as easy as writing to the council and asking for a change of use of the property to be "short stay accomodation" - and them approving it under delegated authority (just the planning team).

At its highest, it could be blown up into the full DA process - goes to the full council, full neighbour advertising and commentary, DA granted subject to impossible conditions (commercial kitchen, lol).

It really depends on how the council is prepared to deal with it, and also how clever the owner is in arguing/navigating their local planning scheme.

(time for me to start my planning law practice?)
 
Thanks Thatbum.
If I had an IP in the right area, I'd be keen to have a go.
Can't hurt can it.
If it doesn't work out, I'll go back to the old-fashioned way ie list property with real estate agent.
If I'm truly game, I might even go down the B&B route (I can reno a house, but not an apartment to B&B specs).
 
I do this with one of the cbd apartments and no issues with zoning as there is a hotel occuping most of the floors of the building. I am sure it wouldn't work as well in a residential only building. Always best to check with owners corp rules before starting anything like this. Good luck
 
I don't understand how it can be illegal if you're just renting out the whole place or rooms, in a property you own.

Aa Y-man notes this is a planning issue which breaches the DA. Not as clear cut if you are still occupying the premises.

Sorry, to clarify, there are laws regarding how many weeks worth of rent you are allowed to accept up front (esp in the case of rooming house) etc if they prepay in the resi acts.

Rentals less than 3 months are outside of the RTA.

As for businesses which operate from houses, councils will permit home occupations and some professional services eg doctors or physios in a resi zone. These premises are permitted to erect signage to a specific size.

Short term rentals do cause issues for some councils, typically in holiday spots where the houses are hired as a party house for the weekend. causing noise, behaviour and parking issues.
 
I do this with one of the cbd apartments and no issues with zoning as there is a hotel occuping most of the floors of the building. I am sure it wouldn't work as well in a residential only building. Always best to check with owners corp rules before starting anything like this. Good luck

Thanks antistar.
I wish you luck too - hope it works out and you don't get hassles from the council/police/neighbours.

BTW, I once bought some second-hand furniture from this guy. The seller told me his 'business' was renting out CBD apartments and sub-letting heavily (hence all the furniture).
This was in the pre-AirBNB days.

Thanks Scott.
 
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