6 minute read
From The CEO
by Boylen
AHA|SA PROPOSES SIX-STEP SOLUTION TO FIX STRA PROBLEM
The AHA|SA has given evidence to a Parliamentary Select Committee into the short-term rental accommodation (STRA) sector in South Australia. We made a powerful case that the unregulated growth of STRA has negatively impacted housing availability, affordability, local communities and the regulated accommodation industry.
It is very obvious to everyone that while platforms like Airbnb initially promoted home-sharing, the reality is that most listings are now unhosted investment properties, significantly reducing long term rental availability.
The key points we raised in our submission include:
Unregulated STRA is contributing to the current housing crisis
Inequality of undermine the conventional accommodation sector
STRA is having a negative impact on employment
The critical need for a regulatory framework to capture all providers of STRA.
The growth in the number of unregulated short term rental accommodation (STRA) properties throughout South Australia poses a real and growing threat to employment and the viability of the SA accommodation industry.
We need action and leadership by government to properly manage this rapidly growing unregulated industry.
Whilst hotels, motels, bed and breakfasts, serviced apartments and hostels must comply with a myriad of regulations, properties that are listed on peer-to-peer platforms, such as Airbnb, do not.
This inequity is impacting the viability of hotels. It is putting employment and training opportunities at risk, undermining investment decisions and adding to the strain of the long-term rental crisis.
It is also jeopardising the safety of guests.
The amenity and safety of communities is also compromised as a result of quasi-hotels operating in residential areas. Neighbourhoods are being adversely impacted, with little recourse for affected residents.
The AHA|SA has always expressed concern with the fact that STRA operates unregulated in South Australia. These concerns are now further highlighted by the acutely chronic housing shortage currently being experienced across the State. The housing shortage is particularly felt across the regions, where there is both a shortage of skilled workers and nowhere to house them.
CHANGE IS NOW OCCURING
Interstate governments, and governments around the world, are moving to regulate platforms such as Airbnb. Why? Because they have accepted in the mounting evidence of the economic and social impact of unregulated short-stay accommodation.
Many States and Territories now look to the South Australian government, which has earned a reputation for taking leadership positions on critical issues, so it is important that we are an early adopter of effective change in this space.
This is an issue that has morphed into a problem that cannot currently be addressed by local government authorities. While they are at the coalface, they do not have the appropriate policies, legislative levers or resources to make the changes required.
SIX ACTIONS TO FIX THE PROBLEM
Consistent with international approaches, the AHA|SA proposes that STRA could be regulated using key principles. This solution would allow genuine home letting and sharing to continue, while protecting the economic and social benefits that are derived from the regulated accommodation industry.
Home sharing properties must be registered, with government funding to provide compliance monitoring.
Minimum stay requirement of 7-30 nights (to be determined by local councils).
Consideration of only hosted accommodation may be listed for sharing – this will require the accommodation provider (or an employee) to reside at the residential premises during the short-term rental agreement.
STRA must meet fire, safety, building and insurance requirements appropriate to short term rentals.
Airbnb, and other Peer-to-Peer platforms, must be required to stop listing non-compliant rentals and share relevant data with authorities.
Neighbours, co-tenants and landlords must be empowered and allowed to have a say.
So as not to stifle tourism, we propose that in times of great need for additional short-stay accommodation – such as Gather Round, LIV Golf, VAILO Adelaide 500, WOMADelaide and the Adelaide Fringe – STRA regulation could allow for the declaration of a “Major Public Event” period.
During these times, home owners wishing to list their property on platforms such as Airbnb would be exempted from the mandatory registration scheme and other regulatory requirements.
INTERNATIONAL CHANGES
Around the world, decision makers are moving toward imposing stricter controls over STRA.
New York, Canada, London, Paris, Amsterdam, Berlin, and San Francisco (the birthplace of Airbnb) are just a few of the cities that have adopted regulations to address the rapid growth of short-stay accommodation.
In these more mature Airbnb markets there is a widespread understanding that sharing platforms are no longer just a place where mum and dad operators can rent out a room or their house for a few days.
Despite Airbnb’s protestations, they have demonstrated a willingness to comply with new regulations, when forced to.
AUSTRALIAN CHANGES
Governments around Australia are starting to act, providing a blueprint for South Australia. Examples include:
WA:
• A state-wide registration process, a 90-day cap beyond which a DA is needed for the Perth region, as well as a financial incentive of $10,000 for owners to revert to long term rental.
• WA councils – Busselton, Broome, Fremantle WA: registration compulsory, with a fee and code of conduct. Fremantle has a two-night minimum.
VIC
A 7.5% levy on STRA platforms for all accommodation revenue.
QLD
Brisbane City Council requires a development application for STRA, the adoption of a development code and a rate surcharge increase on short-term properties of 65%.
In August 2023, consideration by the Queensland government for compulsory registration
Noosa Council: approval required for all STRA, application fee of $1,026 for unhosted with annual renewal required ($400 house, $200 unit). Code of conduct.
NSW
Byron Shire council - a limit of 60 days per annum on short term rental accommodation.
The NSW Government has introduced obligatory registration and fees for short term rentals and a code of conduct. There is a limit of 180 days in Greater Sydney where the host is not present.
In September 2023, Waverley Council (Sydney East) called for a statewide consideration of 60-day limit on Air BNB, noting that there were 3000 listings in their council area alone, 9% of dwellings.
The NSW Government in early 2024 established a review into NSW’s current STRA framework, with one of the main drivers of the review being to release housing supply and trying to improve housing affordability.
TAS
Tasmania – owners required to register with the council for a permit if non-hosted.
SA
Barossa Council – DA required for all STRA.
City of Adelaide proposes to impose commercial rates rather than residential rates.
NEXT STEPS
We believe the time is ripe for change in South Australia. We look forward to seeing the recommendations of the Select Committee and urge the State Government to take decisive action to fix the many problems caused by the unregulated growth of the short stay sector.
