11 November, 2024
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Owners Corporation's Guide to Airbnb in Victoria
Airbnb has transformed the way people travel, providing unique and affordable alternatives to traditional accommodations. However, for Owners Corporations (OC) in Victoria, short-term rentals can bring challenges that need careful consideration. Whether you're an OC member or a property owner in an apartment complex, understanding the impact of Airbnb and similar platforms is crucial.
What Is Airbnb's Role in Strata Living?
Airbnb allows owners to rent out their apartments or rooms on a short-term basis. For strata-titled buildings, this can raise a number of concerns around security, noise, maintenance, and the overall culture of the property. While some owners see it as a way to maximise returns, others may view it as a potential disruption to communal living.
This is where the OC comes into play.
Can Owners Corporations Ban Airbnb in Victoria?
Under Victorian law of the Owners Corporations Act 2006, Owners Corporations have limited powers to restrict short-term rentals like those facilitated through Airbnb. However, changes introduced in recent years allow OCs to take action under certain circumstances.
In 2019, the Owners Corporation Amendment (Short-stay Accommodation) Act was introduced, giving OCs greater leverage to manage the impact of short-term rentals. Now, OCs can impose fines for breaches of rules related to:
• Excessive noise
• Security breaches
• Damage to common property
• Obstructing other residents’ peaceful enjoyment
However, outright bans are difficult to enforce unless they’re clearly stated in the building’s rules or by-laws, and the law allows owners to rent out their properties on a short-term basis, as long as these activities don’t violate specific OC rules.
Setting Clear Rules for Short-Term Rentals
To navigate the rise of Airbnb and ensure harmonious living for all residents, Owners Corporations can set up clear and enforceable rules. Here are some steps an OC can take:
1. Establish Short-Stay Guidelines: Introduce clear policies on short-term letting, including guidelines for behavior, security protocols, and noise control. These should be well-communicated to all residents and guests.
2. Update the OC Rules: If short-term rentals are prevalent in your building, your OC may consider updating the building rules to include provisions specific to Airbnb and other short-stay platforms. This can include setting limits on the number of days an apartment can be rented out or requiring owners to notify the OC of guests.
3. Engage with Owners: Regular communication with property owners is key. Encourage open discussions at OC meetings to address concerns and ensure that owners understand their rights and responsibilities under the OC rules.
4. Security Measures: Install security cameras in common areas and consider keyless entry systems that track who enters and exits the building. This can help monitor and mitigate potential security risks.
5. Dispute Resolution: Ensure there are clear processes for resolving disputes between short-stay tenants, permanent residents, and owners. Mediation services or referring to Victoria’s Civil and Administrative Tribunal (VCAT) may help in complex cases.
Legal and Insurance Considerations
Owners Corporations should ensure that the building's insurance covers issues that may arise from short-term rentals, including damage to common property and liability risks. Additionally, property owners should be made aware of their obligations to inform their insurance providers of short-term leasing arrangements.
It’s also important for both owners and OCs to understand the implications of the Short-stay Accommodation Act, particularly around the potential for penalties if short-term renters cause disruption to the community.
Protecting Community Harmony
One of the primary concerns with short-term rentals is maintaining the harmony and security of a building. The transient nature of Airbnb guests may affect long-term residents' experience of their homes. Some practical steps an OC can take include:
• Guest Screening: Encourage owners to vet guests or use platforms with built-in screening processes.
• Maintenance of Common Areas: Establish regular cleaning schedules, particularly for buildings experiencing high turnover due to short-term stays, to maintain cleanliness and order.
In Summary
While Airbnb and short-term rentals can bring benefits to property owners, it’s vital for Owners Corporations to establish clear, enforceable guidelines to ensure these activities don’t negatively impact the building’s community. With proper management, short-term letting can coexist with the long-term interests of residents and property owners.
Ultimately, finding a balance between maximising property potential and maintaining a secure, pleasant living environment is the key to success for Owners Corporations dealing with Airbnb in Victoria.
This guide provides a foundational overview, but every OC is unique. Owners and committees should seek legal advice where necessary to ensure their approach aligns with the most current legislation and best practices.
Date Published
30 August, 2024
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