Changes to Short-Term Rental Accommodation (STRA)

 

STRA or holiday letting, is where a house or unit is used to provide accommodation on a commercial basis for a temporary or short-term period.

The host may live on the premises (hosted), or it may be non-hosted.

Hosted STRA means short-term rental accommodation provided where the host resides on the premises during the provision of the accommodation. Note that when an owner lives on a property but not necessarily in the home being rented, for example a secondary dwelling or granny flat, this is not considered to be hosted STRA.

Non-hosted STRA means short-term rental accommodation provided where the host does not stay on the premises during the provision of the accommodation.

Note that individual units in a premises where there is an onsite manager or concierge are generally considered as non-hosted.

The NSW Government has announced new provisions for Byron Shire local government area (LGA), which include changes to the number of days permitted for non-hosted short-term rental accommodation (STRA).

New provisions specific to Byron Shire

Previous STRA provisions in the Byron Shire LGA allowed for a maximum of 180 days per 365-day period for non-hosted STRA. Byron Shire Council submitted a planning proposal to reduce the number of days a dwelling within the Byron Shire local government area can be used for non-hosted, short-term rental accommodation. The new provisions have been introduced in response to the proposal.

The new provisions establish a 60-day non-hosted STRA cap for the entire Byron Shire LGA, with the exception of two 365-day mapped precincts in and around Byron Bay Town Centre and at Brunswick Heads. These 365-day precincts are mapped in the Housing SEPP.

Timeline for the new provisions

The new 60-day non-hosted STRA cap provisions in the Byron Shire LGA will come into effect on 23 September 2024, providing a 12-month transition period for the community and industry to prepare.

Hosted and non-hosted short term rental accommodation (STRA) is allowed without approval from Council.

There is no day-cap for hosted STRA.

For all STRA, the following standards need to be met:

• • The dwelling has been lawfully constructed to be used for the purposes of residential accommodation.
  • The type of residential accommodation that the dwelling is being used for is permitted either without or with consent on the land on which the dwelling is located
  • The dwelling has been registered on the STRA register
  • The STRA Fire Safety Standard has been satisfied
  • If the dwelling is part of a Strata Title Scheme, the by-laws permit the subject lot to be used for the purposes of STRA.

STRA is not permitted in:

• • boarding houses
  • seniors housing
  • rural workers dwellings
  • hostels
  • group homes
  • co-living housing
  • refuge or crisis accommodation
  • moveable dwellings: caravans, tents, glamping accommodation

Approved tourist and visitor accommodation operating under separate consent eg serviced apartments, bed and breakfasts, ecotourist facilities, hotels, motels, resorts, camping grounds or caravan parks are not required to register for STRA.

If your agency offers STRA through your business, you must ensure that you have a thorough understanding of the requirements of your Local Government Area. Make sure that you read about STRA on the NSW Fair Trading website – https://www.fairtrading.nsw.gov.au/housing-and-property/short-term-rental-accommodation and also access information from your local Council website. Make sure that you are providing your property owners with accurate advice that is specific to your LGA.

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