News & Updates

AM I REALLY ALLOWED TO AIRBNB MY INVESTMENT APARTMENT?

Sep 23, 2024

You were one of the quick-thinking, fast-acting people who saw the recent upturn in the property market as an opportunity to buy an amazing investment apartment with sea views, close to vibey restaurants. You feel it’s absolutely perfect for a visitor to the area – but in the haste of submitting your offer and outbidding the competition, you didn’t get clarity on whether you are permitted to Airbnb the apartment beyond the estate agent saying “yes, tons of people in this block do it”. Now you are ready for your short-term listing to go live and you want to be sure that you aren’t breaking any rules. But where is this information found?

To ensure you have permission to list your investment apartment on Airbnb, you’ll need to follow these steps:

  1. Consult the Body Corporate Conduct Rules: 

Obtain a copy of the rules from the Managing Agent. These are legally binding on all owners and tenants in the sectional title scheme. Specifically, look for any clauses related to short-term letting. 

  1. Check for Prohibitions:

Many conduct rules prohibit letting of a unit for periods less than three months, which could restrict you from using Airbnb. These rules can be worded in various ways but often aim to limit transient occupancy.

  1. If Rules are Silent: 

If there is no specific mention of short-term letting in the rules, you can generally assume it’s allowed, but you must still comply with all other conduct rules.

  1. Notify the Body Corporate:

According to the Sectional Title Schemes Management Act, you must inform the body corporate when your unit is leased.

  1. Attach Conduct Rules to Lease: 

Under the Rental Housing Act, you must provide the tenant with a copy of the scheme’s conduct rules as part of the lease agreement.

  1. Be Aware of Rule Changes:

Remember that the rules can be amended, which requires either a special or general meeting and a vote from the body corporate members. Changes must be submitted to the Community Schemes Ombud Service and meet standards of fairness and reasonableness.

Make sure you’re fully aware of the current rules and prepared for any changes that might affect your ability to rent your apartment on Airbnb. If you need further advice specific to your situation, consider contacting one of our property law attorneys.

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