Body Corporate vote to prohibit short term stays - Adelaide South Australia

[Jeremy548]

Morning all,

I have recently received notification from my body corporate regarding a vote to survey owners regarding a proposed change to by-laws to prohibit or restrict lot owners from leasing a lot to a tenant for under two months in an attempt to prevent Air BNB.

The property is in Adelaide South Australia. The South Australian Government and local council do not regulate or ban Air BNB. 

I'd be interested if any persons have had similar experiences or can offer advice, specifically to South Australia. I have viewed the Strata Titles Act (South Australia) s19A which states certain articles of the Strata may be struct out by court order if they are found to either a) devalue a property b) unfairly discriminate against a unit holder. These orders must be made after application to a Magistrates or District Court under the Act. Obviously this would be a lengthy and possibly costly process that I would only want as a last resort.

[Jeremy548]

Following up it appears that under s37(2) of the Community Titles Act (SA) they can create a by law to prohibit or restrict the owner of a lot from leasing or granting rights of
occupation in respect of the lot for valuable consideration for a period of less
than 2 months

Fines and penalties can be imposed for breaching the law. Hopefully the vote doesn't pass. I'd be interested to know still if any other South Australian hosts have successfully challenged or changed this with their Strata corporations.

[Philippa97]

Hi @Jeremy548 

Id be interested to know how you got on here. We are considering purchasing a Community Title property in Adelaide but have been told (awaiting confirmation) that the Strata group have banned short term rentals. Id appreciate any advie you could give. With thanks. Philippa

[Dalwinder0]

Hi Jeremy,

I am currently in a similar situation. One of the neighbours raised a motion in strata and in a majority vote they restricted my property to be not renting for less than 2 months. 

Did you know/found any way around it? 

I mean, like neighbors we also spent a fair bit of money to buy this property and can't lease to whoever we like on Airbnb? i find it just totally frustrating and unreasonable.

There must be some laws/rights around to protect owners? 

Keen to know what was your experience like or if you found a way around?

[Rosey12]

Hi Jeremy,

This by laws s37(2) of the Community Titles Act (SA) is legal now? If we do airbnb, only fine? anything else? I am going to settle a community property to do airbnb next week! GOD!

I read form 1, yes, the community says no short leasing less than 2 months, otherwise fine $500.

What can I do? I bided it on auction!

[Sarah5000]

Hi Jeremy, 

recently I also got a vote from Strata AGM too, and I think the issue is not Airbnb it is about the people such as a host or a guest. I think to ban Airbnb does not solve the issue, it is better to fine the owner or the host who does not care about the community. I have had many guests and they were all good, but some of hosts in my building they did not take or check their guests. 

[Annette952]

https://jewhites.com.au/airbnb-in-strata/

Hi Jeremy and Airbnb community.  I've attached an article by a realestate company i think they are...and I'm not sure when it was written but as I'm going through the same thing right now it may help with the grey area of strata laws. It appears that there is no law preventing you from doing what you want with your property.  They can vote all they like but in SA it is not enforceable to prevent an Airbnb. NSW has legalised this restriction but its yet to come into SA. Hope that helps and if anyone knows differently, I'd love to hear too. Good luck. 

[Helen744]

@Annette952 Certainly in Victoria all strata requires insurance and some insurance companies refuse to insure Airbnbs as part of the group insurance which as you know is part and parcel of strata title , this leaves both the owner of the unit vulnerable and the guests without the type of insurance cover necessary for public liability .So it is important that the body corporate functions and that insurance and lines up with that .. .. H

[Helen744]

@Jeremy548 I suspect that would be a waste of time Jeremy . If there are more than two units , certainly in Victoria then body corporate rules apply . Some units do not allow rentals of any kind.If your body corporate is active then it would be wise to be active and attend meetings , but it would depend on insurance , if pets are allowed , if costs are taken for garden or driveway maintenance , if there is sufficient privacy per unit or how much nuisance value Airbnbs are considered to be . Units vary widely in Austaralia and the one rule guides them all ''the right to quiet enjoyment ' . I do not think there is much value in forcing the issue but rather creating trust and reliability with your fellow unit holders... H

[Natalie1292]

Hello 

I just attended my strata meeting which voted no to allowing me to rent on Airbnb for less than 3 months. So disappointed. I can't afford to leave the property sitting there. 

Wondering how you are getting on. I have asked the honour the bookings I have for this year as they were booked prior to the change in by laws last year. 

I can't actually believe they can tell you what to do with your property. 

[Manuel6211]

To all of you who are dumbfounded by this situation. Did any of you bother to read the building's By-laws before you bought the property? It seems not.

If you buy a stand alone you are entitled to do what you want as the sole occupier. In a unit complex you are not alone and can't just do what you want with others' common areas etc.

This issue raises privacy, safety and insurance issues that you all have obviously ignored because you have chosen to make as much money as you can with as little research and effort as possible.

Message is 'RESPECT YOUR NEIGHBOUR'!!!