Navigating Change: The Impact of Recent Laws on Short-Term Rentals in Noosa Shire Council
Noosa, nestled on the stunning Sunshine Coast of Queensland, Australia, has long been a sought-after destination for holiday makers and is by far the most well known area of the Sunshine Coast region. However, recent laws imposed by the Noosa Shire Council have brought significant changes to the short-term rental industry within the council's catchment area.
Rules on Short-Term Holiday Rentals
The Noosa Shire Council has implemented a set of regulations to govern the operation of short-term holiday rentals in the region. Key rules for investors looking to short-term let include:
Permit Requirement: Short-term rental providers are required to obtain a permit from the council to operate legally within the catchment area. This permit ensures compliance with specific guidelines and standards set by the council.
Occupancy Limits: The council has introduced occupancy limits to manage the impact of short-term rentals on the local community. These limits restrict the number of guests allowed per property, ensuring that the size and amenities of the rental property are suitable for the permitted number of occupants.
Calendar Restrictions: There is a 60 night limit imposed over a calendar year on renting as a short term rental for any property that is your principal place of residence. This restriction is also evident where the property is not your principal place of residence but is in a low density housing area.
Before the commencement of Noosa Plan 2020 on 31 July 2020, planning approval was not required for a detached house to be used for short term letting. If there has been a consistent pattern of the house being generally available for short-term accommodation prior to the commencement of Noosa Plan 2020, then the property may be considered to have existing use rights. If the use continues substantially in the same form, then it continues to be protected, despite the commencement of Noosa Plan 2020. Evidence to show the short-term accommodation use or pattern of the house being used or available for use for short-term accommodation prior to the commencement of Noosa Plan 2020, will need to be provided.
For medium & high density zones stay-restrictions also apply.
Existing use rights can be determined for either a principal place of residence or an existing short-term accommodation residence however need to be determined by the council once the application has been submitted. It is likely that if the home has already been a vacation rental for some time then it could continue to be.
Noise and Behavior Regulations: Short-term rental providers are required to adhere to noise restrictions and maintain responsible behaviour to minimise disturbances to neighbouring properties and maintain the tranquillity of the community.
A manager must be available 24/7 and be located within 30 minutes/20 kilometres of the home for any issue that may arise during a guest's stay.
No more than 5 bedrooms in a home.
Impact on Investors
Increased Compliance and Costs: The new laws have necessitated short-term rental providers to invest additional time, effort, and resources in securing permits, adhering to regulations, and maintaining compliance. This increased administrative burden and associated costs have posed challenges for investors in the short-term rental market.
Operational Restrictions: The introduction of occupancy limits and behaviour regulations may affect the profitability and flexibility of short-term rental operations. Rental providers must carefully manage bookings and ensure compliance with the rules, potentially impacting revenue potential.
It is critical that the home being rented on the short-term rental market is suitable for the market and does not typically contain a high volume of residents occupying the area. Noosa Shire will consider the homes surrounding neighbours and if predominantly owner-occupied you will find it challenging to get approval from the council.
Impact on Affordable Housing
The objective of the laws was to address concerns about the availability of affordable housing within the Noosa region as well as the impact on local residents. The impact on affordable housing is two-fold:
Preservation of Long-Term Rental Stock: By regulating and limiting the growth of short-term rentals, the laws aim to preserve the availability of long-term rental properties. This can help address the housing crisis by ensuring that more properties are accessible to permanent residents and long-term tenants.
Rental Market Stability: The laws may contribute to greater stability in the rental market, allowing tenants to secure longer-term leases and avoid fluctuations in availability and rental prices often associated with a booming short-term rental industry.
Impact on Holidaymakers
Reduced Options and Higher Prices: The regulations may result in a reduction in the number of available short-term rental properties in the Noosa region. This limited supply could lead to increased competition, increased length-of-stay requirements for guests making it inflexible for holiday makers and potentially higher prices for holiday goers seeking accommodation, particularly during peak seasons.
Improved quality of the homes available to guests ensuring that the homes on offer provide suitable accommodation and amenities that guests are after when holidaying in the region.
Compliance and governance are necessary to ensure the standards of holiday homes in the area are high and meet the needs of holidaymakers travelling to the region, as well as ensuring professionalism of its providers to ensure service levels are high. Moreover, this is essential to ensure that residents are not negatively impacted by holidaymakers. Resolving the housing crisis is also critical to ensure Noosa offers housing for all of its residents, especially to ensure that businesses can attract staff to the area. In conclusion, to preserve a balance and protect the economy, all types of homes need to be available within the Noosa region.
Melanie Harding
Co-founder
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