The Concealed Reality of Short-Stay Rentals

The Australian property market is always a hot topic up for debate in the media, but what is not usually brought to light is the effects of short-stay rentals, specifically Airbnb. Justin Ferguson, Founder and Principal of Ferguson Property Agents, raises the issues that have developed as a result of the burgeoning popularity of new age, short-stay renting services.

Justin Ferguson says, “As the sharing economy of Airbnb continues to boom, there are increasing issues that come with the management and legality of these properties.

“Currently, local councils and governments are struggling to keep up with the growth of short- stay rentals and are increasingly put under pressure to implement laws to make this sharing economy explosion fair for everyone.“ he continues.

Some key factors that are raised when it comes to Airbnb rentals:

• As per The Tenants Union, sub-letting must be approved in writing, by the property manager or landlord, which is a step that is largely being skipped by the majority of Airbnb rentals – this breaks the terms of the lease and brings issues of insurance coverage and security.
• If you are a host of property on Airbnb and you have not declared participation in the sharing economy, then you may be subject to hefty fines from not just the council but the Australian Taxation Office and State Revenue Offices.
• There is currently a severe lack of understanding between local governments in each state. The NSW government is yet to enforce legislation for short-stay rentals with only six councils within Sydney stating they allow short-term rentals with some requiring permission to be given.
• 60.8%* of properties available in Sydney are now whole residential properties with body corporates and property managers concerned that the vast expansion of properties are being rented out illegally and disturbing traditional rentals.

Justin adds, “The main issue I see with Airbnb in the rental market is that it is unregulated and confusing. Increasingly, we are seeing hosts being fined for not declaring their extra income from their Airbnb rental, as it is technically ‘unauthorised’.

“On top of that, the housing market is already in very high demand and challenging to break into without properties being acquired for the purpose Airbnb rentals,” he states.

For more information about Ferguson Property Agents, please visit: www.fergusonproperty.com.au

* http://insideairbnb.com/sydney/

For further information or to speak with Justin Ferguson, contact 360 PR:
Rachel King – rachel@360pr.com.au – 02 9571 4448 – 0423 833 814