FAQ

Short term rental accommodation (STRA) can be described as the commercial letting of all or part of a home to tourists and visitors. 

STRA is most commonly associated with booking platforms such as ‘Airbnb’ and ‘Stayz’ but also includes traditional holiday rentals through property managers. 

'Hosted' STRA is defined where the host is living on the premises when paying guests are present; and 'non-hosted' STRA is defined where the host is absent when guests are present.

In August 2019, the NSW Government released a proposal for a new state-wide regulatory framework. The proposed changes are intended to address land use permissibility issues by the introduction of a new state policy and are to include a mandatory Code of Conduct and new Fire Safety Standards. The NSW Government is also developing a new STRA premises register.

The proposed State Environmental Planning Policy (Short-term Rental Accommodation) 2019 (STRA SEPP) will be a new state policy specifically created by the NSW Government for STRA to: 

• introduce a standard ‘exempt development’ approval pathway (i.e. no approval required from Council) for low-risk STRA establishments;
• introduce a ‘complying development’ pathway (development approval required) for non-hosted STRA's located on fire prone or flood constrained land; and
• identify regional councils that have nominated different day limits for non-hosted STRA within the announced thresholds. 

Other key aspects of the proposed planning framework for STRA are:

• strata by-laws, which will allow owners corporations (75% majority) to make a by-law that prohibits STRA only where a lot is not a principal place of residence of the host;
• industry led registration system for STRA providers;
• mandatory Code of Conduct; and
• fire safety standards.

Day thresholds refer to the number of days a whole (non-hosted) home could be used for short term rental accommodation (STRA). The maximum day threshold for non-hosted STRA that satisfy these requirements will range from 365 days to no less than 180 days per calendar year. 

Currently, the NSW Government proposes that a 365 day-threshold apply to the Coffs Harbour LGA, however Council may (with sufficient evidence), nominate a reduced day threshold.

The ability to reduce the day threshold in regional areas down to no less than 180 days per year recognises both the benefits of STRA and the potential adverse impact that non-hosted STRA can have on neighbourhood amenity, local housing markets and sense of community and place.

If the host resides on the premises during the use of the dwelling for STRA, then the use can proceed as exempt development 365 days per year (i.e. no approval required from Council), provided that the requirements within the proposed STRA SEPP are met. This recognises the hosts’ ability to manage behaviour and mitigate potential impacts on neighbourhood amenity.

If the host does not reside on the premises during the use of the dwelling for STRA, and the property is not on bushfire prone land or a flood control lot, then the use can proceed as exempt development (i.e. no approval required from Council), provided that the requirements within the proposed STRA SEPP are met.

If the host does not reside on the premises during the use of the dwelling for STRA and the property is on bushfire prone land or a flood control lot, the use can only be undertaken as complying development (i.e. approval required from Council).

In the absence of a host, the complying development pathway has additional requirements that consider the safety of the guests, who may be unfamiliar with the dwelling and the associated risks and hazards in the area.

The proposed reforms provide regional councils with an opportunity to consider the potential impacts of STRA on their local community and develop a local response to the issue, within the scope of the proposed regulatory framework. 

The reforms include an option to reduce the number of days a whole (non-hosted) home could be used for short term rental accommodation.   This could mean that hosted STRA will be able to be undertaken as exempt development (i.e. no approval required from Council) with no day threshold cap.   

For non-hosted STRA, regional Councils have the option to nominate a day threshold to no lower than 180 days per year (although in certain circumstances a day threshold no lower than 90 days may be permitted as in the case of Byron Shire Council). 

180 days generally equates to weekends, school holidays and public holidays plus 16 additional days.

A 90 day threshold may be appropriate where a large percentage of properties are being rented as STRA.

In the case of Byron Shire Council, the State Government have agreed to vary the threshold to 90 days for STRA due to the area’s unique circumstances (Byron Shire has around 18% of housing stock used for STRA). Byron Shire Council are preparing a planning proposal which must clearly articulate the reasons for changing the non-hosted STRA period. This must include a sound evidence base for the proposed change and evidence of the availability of short-term rental accommodation in the area (or parts of the area) in the 12 months preceding the proposal, relative to the amount of housing in the area, and trend data on the availability of short-term rental accommodation over the past 5 years.

Coffs Harbour City Council wishes to strike an appropriate balance between supporting the value and local economic benefits of STRA and managing negative social and environmental impacts of this activity in our community.  

It should be noted that STRA listed properties currently represent 6.5% of total housing stock in the Coffs Harbour LGA.

Council is therefore seeking community and industry feedback on an appropriate day threshold for non-hosted STRA within the Coffs Harbour Local Government Area.

Options:

1. Retain the proposed 365 day threshold for non-hosted SRTA across the whole local government area,

2. Reduce the day threshold for non-hosted STRA from 365 days to no less than 180 days either:

• across the whole Local Government Area; or
• in specific localities only.