NSW Short-Term Rental (STR) Requirements: A Comprehensive Guide for Property Owners
If you're planning to rent out your property as a short-term rental (STR) in New South Wales (NSW), it's essential to be aware of the legal requirements. This guide provides a clear overview of how to comply with state regulations while maintaining safety and maximizing your rental opportunities.
Note: This post does not constitute legal advice. Please conduct your own research and seek advice from professionals as needed.
1. Hosted vs. Non-Hosted Short-Term Rentals
In NSW, there are two main categories for STRs:
Hosted: The owner or a building manager is present on-site. This could mean renting out a room or a guest house while living on the property. There is no day limit on hosted rentals, allowing you to rent the property 365 days a year.
Non-Hosted: The entire property is rented out without the owner or manager being on-site. If it’s your primary residence, you are limited to 180 days per year. Any period of consecutive bookings exceeding 21 days does not count toward this cap.
Knowing which type of rental your property falls under is crucial for understanding the associated day limits.
2. Obtain a NSW Short-Term Rental Accommodation (STRA) Registration Number
Before renting out your property, whether hosted or non-hosted, you must obtain a STRA registration number. This is mandatory for all short-term rental properties unless your listing existed before the new regulations and is considered “grandfathered.”
To register, visit the official NSW STRA portal (Register a short-term rental accommodation property | Service NSW) and obtain a unique number, which you’ll need to list your property on platforms like Airbnb, Stayz, or Booking.com.
3. Understand the 180-Day Cap for Non-Hosted Rentals
If your short-term rental is non-hosted and your primary residence, the NSW government limits you to 180 days per year. However, consecutive bookings exceeding 21 days do not count toward this cap.
4. Strata Considerations: Notify Your Owners Corporation
For strata-managed properties, it’s important to notify your Strata Manager or Owners Corporation if you’re engaging in short-term rental activities, particularly for non-hosted rentals.
If the property is your primary residence, strata cannot prevent you from renting it out for up to 180 days per year.
For investment properties, you may need to seek formal approval from the Owners Corporation. However, by law, strata schemes cannot ban short-term rentals unless they have passed a specific by-law with 75% of votes in favor.
Always review the by-laws within your strata to avoid complications.
5. Fire Safety Compliance Requirements
All short-term rentals must meet NSW Fire Safety Regulations to ensure the safety of guests. This includes:
Installing smoke alarms in bedrooms and hallways.
Providing a fire extinguisher and fire blanket in the kitchen.
Displaying a fire evacuation plan that’s easily visible to guests.
These safety measures are required by law and are crucial for guest protection. Regularly check and maintain all fire safety equipment.
6. Adequate Insurance Coverage
Standard home and contents insurance often doesn’t cover short-term rental activities. NSW requires STR property owners to hold insurance that covers liability for third-party injuries and death.
It’s important to ensure your policy specifically covers short-term rental activities. Some recommended insurers include:
Terri Sheer
EBM RentCover
ShareCover
Each insurer provides tailored policies to cover the unique risks involved in STRs, with options ranging from three months to annual coverage.
7. Comply with the Code of Conduct for Short-Term Rentals
The NSW government has established a Code of Conduct for short-term rentals. This code covers:
Ensuring the property is safe and meets fire safety standards.
Maintaining appropriate insurance coverage.
Managing guest complaints professionally and promptly.
Adhering to the Code of Conduct is a legal requirement, and compliance will also help maintain a high standard of guest satisfaction.
8. Exceptions for Certain Zones: Byron Bay and Others
Some regions of NSW, such as parts of Byron Bay, have stricter regulations. In some zones, non-hosted short-term rentals are limited to 60 days per year, significantly less than the standard 180-day cap for other parts of the state.
Be sure to check local council regulations if your property falls within a designated zone with different restrictions. These caps are typically imposed to manage local housing availability and tourism impact.
9. NSW STRA Registration and Booking Platforms
Once your property is registered with the NSW STRA, you will receive a unique property ID. Without this ID, platforms like Airbnb or Stayz will not allow you to list the property unless it is “grandfathered.” This registration ensures that all properties listed for STRs in NSW meet the state's requirements.
10. Peak Season Preparations
To maximize income during peak seasons, such as holidays or major local events, ensure your property is in prime condition. Stock up on amenities, ensure compliance with all legal and safety standards, and adjust your pricing to reflect the increased demand.
Conclusion
Navigating NSW short-term rental regulations may seem complex, but understanding the differences between hosted and non-hosted rentals, the 180-day cap (and its 60-day limitation in certain areas), strata laws, fire safety requirements, and proper insurance coverage will help you maintain a compliant and successful rental.
Be sure to stay informed of any local zoning exceptions, and always keep your property’s safety and guest experience at the forefront. For more specific advice, consult professionals and keep updated with any legislative changes in your area.
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