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You may have heard about the new planning regulations coming into effect for short term and holiday rentals (STHR) in NSW. The latest update is that the proposed legislation has been passed by parliament but has not yet been enacted.


At this time there is still not a great deal of detail available with regards to the legislation itself.


The information that is available to us right now indicates the following:


  • The NSW government will establish a single definition for what constitutes Short term or holiday rental accommodation.
  • When the host is present on-site overnight, STHL will be allowed as ‘exempt development’ all year. This means anyone renting a room in their house or part of their property, such as a granny flat on a short term basis will be allowed to continue to do so without a cap.
  • When the host is not present on-site overnight, STHL will be allowed as ‘exempt development’ with a limit of 180 days for hosts in Greater Sydney and 365 days in all other areas of NSW. This will mean that full time short term rental properties will have a 180 night cap imposed. We are currently working to find out if there is any kind of application or DA process that will allow for our owners to be exempt from this cap. If there is not, then we will be recommending to our owners that we utilize a combination of short and long term rentals throughout the year, which many of our owners already do.
  • Councils outside Greater Sydney will be able to decrease, through their local environmental plans, the 365 day threshold to no lower than 180 days per year and
  • Certain planning rules will apply to properties on bushfire prone land.
  • There will be changes made to the Strata Schemes Management Act that will give strata committees the power to decide if short term rentals will be permitted or not. We encourage all of our owners to keep an eye on their strata notifications and attend strata meetings to stay up to date and ensure that you have your say on any updates to your strata by laws.
  • The NSW government will introduce a code of conduct for STHR that hosts, agents, platforms and guests must adhere to. They will also establish a register and online database that will record any problem guests and hosts that are banned from using accommodation platforms. We think this is a great initiative that will give us an extra tool to help us ensure that we continue to get the highest quality tenants and guests for our owners.


For further information on what we have outlined here please visit Fair Trading Website and Planning NSW website.


This new policy has not yet been implemented. We will be keeping you updated as and when more information becomes available to us. Feel free to send us an email if you have any questions on how these changes will affect your property.


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