04 Mar Short term letting gain = long term pain?
Over recent years, we’ve seen the democratisation of services where we’ll order an UBER over a Taxi, Deliveroo’s all but replaced Dougie the Pizza Boy and Jimmy Brings quenches our thirst long after BWS has closed*. Accommodation and the rental market has also changed – which of course, many local councils have jumped onto as well.
The likes of Airbnb, Stayz, Booking.com et al are commonplace now among “short stay” travellers, regardless if you’re looking for a unique place to stay – particularly when travelling – a ‘slice of home’, or just somewhere convenient while you’re passing through a city.
We’re finding many of our clients are purchasing Queensland investment properties with the aim of using them short to medium term as Short Stay Accommodation – “we’re going to Airbnb it for 12 months” is an expression heard regularly by our Top Guns over the last few years.
Short Stay Accommodation is typically considered a timeframe of rent three consecutive months or under.
Many Queensland local councils have jumped onto the bandwagon and if you are looking to list your Queensland Property as a Short Stay Accommodation, it is worthwhile checking with the local authorities as to whether you need a permit.
Gold Coast and Brisbane City Councils are two in South East Queensland that are leading crackdowns on Short Stay property owners, particularly in high-rise developments and larger houses that have become known as ‘Party Houses’ – rented for weekends for Bucks’, Hens’ or Birthday Parties.
It’s been the proliferation of the Party Houses and noise from large apartment overcrowding in primarily residential buildings that have led to councils looking closely at what would otherwise be a somewhat legitimate business – and this is happening in places around the world, not just here in Queensland.
Body Corporates can also have by-laws about the usage situation of apartments, units or townhouses in this case. So it is worthwhile checking the Community Management Statement with the Body Corporate before you get the photos done and get your place listed.
If you have your house, apartment or unit listed with a Property Manager or Real Estate for more longer term rentals – i.e. 6 months or more per lease – that will be considered a standard rental – however you will still need to take into account things like contents and public liability insurances.
Our team can’t advise you specifically on requirements regarding Short Stay Accommodation, that’s up to you to investigate. We just ask that you’re vigilant and like with any investment or business opportunity, look through all options, rights and pitfalls.
*Drink and eat responsibly