Proposed New South Wales Short Term Letting legislation Col Myers
Contents 1. Policy History 2. Currently Existing 3. The Proposed Solution 4. Planning 5. Code of Conduct 6. Safety Requirements 7. Transitional Arrangements 8. Background to Industry Reforms 9. Supervision Guidelines to be Updated Separately 10. Streamlining the Licensing System 11. Qualification Requirements for a Licence and Certificate of Registration 12. Assistant Agent Pathways 13. Class 2 Agent Pathways 14. Class 1 Agent Pathways 15. Exemptions 16. General Rules of Conduct Applying to all Licensees and Registered Persons 17. New CPD Framework
1. Policy History • 2012 - The Holiday Rental Code of Conduct • 2015 - Became a national code . • 2015 – 2016 - Recommended to amend planning laws :- • Exempt development, • Complying development; • Existing code of conduct strengthened. • 2017 - Options paper issued; • 2018 – Policy announced in June.
2. Currently Existing • STRA is regulated differently by councils; • Most have no specific legislation for STRA - ancillary activity to the residential use (only 11 define the use); • Voluntary Code of Conduct for industry still applies ; • Only limited scope for By Law use to control.
3. The Proposed Solution 1. A state-wide planning instrument ; 2. A mandatory Code of Conduct 3. By Law prohibitions
4. Planning State wide definition for ‘ short-term rental accommodation’: - • existing dwelling; • lawfully used to provide accommodation; • commercial basis • short-term period (less than 3 months) , • with or without the host residing on the premises during that period • but does not include tourist and visitor accommodation ;
4. Planning (contd) “Tourist and visitor accommodation ” -includes backpackers’ accommodation, hotel or motel accommodation and serviced apartments. “ Serviced apartment” - a building (or part of a building) providing self-contained accommodation to tourists or visitors on a commercial basis and that is regularly serviced or cleaned by the owner or manager of the building or part of the building or the owner’s or manager’s agents
4. Planning (contd) “Exempt” Development - Hosted Must be: (a) residential accommodation, the number of persons residing in the dwelling at any one time does not exceed — (b) (i) 2 persons for each bedroom in the dwelling, or (ii) 12 persons in total for the dwelling, whichever is the lesser, and (c) Not tourist and visitor accommodation; and (d) Have a current fire safety certificate. Where the host is present , STRA is exempt development for 365 days per calendar year noting the hosts’ ability to manage behaviour and impacts.
4. Planning (contd) “Exempt development”— non-hosted Must be: (a) residential accommodation, (b) the number of persons does not exceed — (i) 2 persons for each bedroom in the dwelling, or (ii) 12 persons in total for the dwelling, whichever is the lesser, and (c) Not tourist and visitor accommodation; and (d) the dwelling is not situated on bush fire prone land, and (e) the dwelling is not situated on a flood control lot
4. Planning (contd) Non-hosted in Greater Sydney Region, Ballina or the City of Lake Macquarie area is exempt development for 180 days per calendar year. 365 days in other regional areas, except where a council varies this to no lower than 180 days ; NB - 21 consecutive days or more for which non-hosted short-term rental accommodation is provided to the same person or persons is not to be counted.
5. Planning (contd) “Complying” Development— Non-Hosted Same requirements as Exempt Development but is in flood prone land or bush fire prone land which is under certain rating levels. In Greater Sydney/ Ballina/Lake Macquarie – limited to 180 days STRA per annum
5. Code of Conduct (contd) Council Limitations: Ballina - 180 days across its Local Government area; Lake Macquarie – 180 days across its Local Government area; Clarence Valley – 180 days in designated areas; Muswellbrook Shire -180 days in designated areas.
5. Code of Conduct • Mandatory ; • Will apply to online accommodation platforms, letting agents, hosts and guests ; • Will address impacts like noise levels, disruptive guests and effects on shared neighbourhood amenities ; • Will include a new dispute resolution process to resolve complaints; • Policed by Fair Trading
5. Code of Conduct (contd) Hosts will need to: 1. Inform a guest before they book about the existence of the Code, 2. Must have a copy of the Code on their website; 3. Cannot provide accommodation to a guest on the exclusion register; 4. Must keep records of guest stays for 5 years; 5. Must notify the guest of the complaint process if they receive a complaint.
5. Code of Conduct (contd) Guests : 1. Cannot create disturbances, act violently, cause harm, cause damage; 2. Will be able to lodge complaints with the Commissioner; 3. The Commissioner has power to apply penalties including revoking the hosts ability to conduct short-term accommodation.
6. Safety Requirements • Safety of guests important, • less familiar with the location where the host is not present; • Building Code of Australia does not provide any specific requirements for STRA; • Not more than 2 persons/bedroom or 12 persons, whichever is the lesser; • Installation of smoke alarms in each bedroom, and the smoke alarms are interconnected where there is more than one alarm; • Entry doors should be openable from inside the dwelling without a key;
6. Safety Requirements (contd) • Self-closing device and smoke seals to all edges of the door if the door opens onto a shared corridor and entrance doorway; • Fire extinguisher and fire blanket in the kitchen; • Making an Evacuation Plan, displaying ‘evacuation signage’ and familiarising guests with exit system; • Standalone dwellings only - installation of heat alarms in single dwellings which are located above a garage. This would be required only where the garage is not accessible to the guest/s. • Dwellings will not be able to be let for STRA to unrelated parties at one time. Related parties would include families, partners, friends and/or colleagues.
7. Transitional arrangements • On Commencement, will automatically apply to all councils in NSW, including those with existing provisions. • The Department of Planning and Environment will work with councils with existing provisions to amend their LEPs to be consistent with the State-wide framework, including appropriate transitional periods.
8. Licensing Licensing
8. Licencing - Background • Currently the Property, Stock and Business Agents Act 2002. Reforms to commence on 23 rd March 2020 and are aimed • to : • enhance educational and professional standards across the industry • improve accountability and transparency • streamline the licensing framework • strengthen Fair Trading’s compliance and enforcement powers • Introduce 1, 3 or 5 year licence terms; • clarifying obligations of licensees and auditors in relation to the annual auditing of trust accounts and the lodgement of reports on those audits with Fair Trading (commenced on 1 July 2019).
9. Supervision Guidelines • Supervision guidelines for licensees in charge are in the process of being updated. • Fair Trading will consult with industry representatives separately on these.
10. Streamlining the Licensing System Currently, agents in the real estate and property services industry have to hold a certificate of registration or licence . • A licence can be held by an individual or corporation, while certificates of registration can only be held by individuals. • The functions of a buyer’s agent, on -site residential property management and business agent will now be all covered under the real estate agent licence. • Now will offer licences and certificates of registration in four categories: • Real estate agent • Stock and station agent • Dual real estate and stock and station agent • Strata managing agent.
10. Streamlining the Licensing System (cont) Three levels of licences , reflecting different levels of qualifications and experience: • Certificate of registration (assistant agent) • Class 2 licence (licensed agent) • Class 1 licence (licensee in charge)
10. Streamlining the Licensing System (cont) The certificate of registration - allows a person to perform the functions of an assistant agent i.e. a sales person Assistant agents will perform entry-level roles , while they obtain the qualifications and experience necessary to become a fully licensed agent, which will require a class 2 licence. • will not be permitted to enter into a contract or transaction on behalf of any party, except for a residential tenancy agreement. • must be appropriately supervised by a licensee-in-charge with a class 1 licence when carrying out these functions. • Only class 1 licence holders may authorise the withdrawal of money from a trust account.
10. Streamlining the Licensing System (cont) 1. A class 2 licence is equivalent to the current full agent’s licence. 2. A class 1 licence is required by a person who is working as a licensee in charge of a business.
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