Short Term Letting By-laws in the new 'Code of Conduct'

Written on the 20 November 2020

Recently the Department of Fair Trading announced the mandatory 'Code of Conduct' for the short-term rental accommodation arrangements.

This Code of Conduct is scheduled to commence on 18 December 2020, just in time for the Christmas/New Year festive season and school holidays.

A short-term rental accommodation premises register is being developed and expected to commence in 2021. As soon as this register is released, as a host, you must register yourself and your premises

Your strata scheme should take this opportunity to read the 'Code of Conduct' and to consider reviewing and if needed, updating its short term rental accommodation by-laws.

This will ensure the changes made to legislation governing this space in April 2020 and now with the publication of the new mandatory 'Code of Conduct' are covered.

Especially as the festive season and school holidays are just around the corner.

Under the Code of Conduct there are several new obligations for short term rental accommodation hosts.

These include:

- Insurance that covers liability for third party injuries and death and is valid for any period of occupancy under any STRAs;

- A host or an authorised contact must be available between 8am and 5pm every day of the week to manage guests, the premises, neighbourhood complaints and other issues concerning use of the premises; You must also give contact details for emergency electrical, plumbing and general emergency services to your guests, and be contactable outside the above ordinary hours in case of an emergency;

- A host must ensure that their guests meet the behaviour obligations for guests under the Code of Conduct and provide a copy of the Code together with the strata or community by-laws for the strata or community scheme in which the premises are located to the guest and make them aware that the Code and where applicable, the by-laws, apply to their stay;

- Premises are not to be rented by a host to a guest that is recorded on the exclusion register'

If the Code of Conduct is breached the following penalties may be applied:

- Warnings or directions to take or cease certain action

- Fines

- A 'strike' against a host, host's premises, or guest for serious breaches of the code

Recording a guest, host or host's premises on the exclusion register. Two strikes in a two-year period will result in a listing on the exclusion register, prohibiting the host or guest from participating in the short-term rental accommodation industry for five years.

Want to know more? Contact our team