This article is about whether you can stop short term letting like Airbnb in ACT strata properties.
Table of Contents:
- QUESTION: We own and manage units for Short Term Rent. Keys to the units are located in lockboxes in our letterboxes which we leave unlocked. The lockbox is not fixed to, but also cannot be removed from the letterbox. Does the EC have the authority to have these removed from our letterbox?
- QUESTION: An increase in short term guests is costing our building more in repairs and maintenance. Can we introduce a special levy for any owner whose unit is used for short term accommodation?
- QUESTION: Is it possible to stop short term letting like Airbnb in a townhouse complex in the ACT?
Question: We own and manage units for Short Term Rent. Keys to the units are located in lockboxes in our letterboxes which we leave unlocked. The lockbox is not fixed to, but also cannot be removed from the letterbox. Does the EC have the authority to have these removed from our letterbox?
Answer: An unsecured lockbox can present a security concern for Owners Corporations.
Many Owners Corporations within Canberra have swipe systems or other security systems in place to help prevent unwanted people from getting into the complex.
Lockboxes are notorious for being broken into with the contents being used to gain access into the complex, along with the unit that the keys are for.
Much like finding a set of keys on the street, an unsecured lockbox can present a security concern for many Owners Corporations. While you state that the lockbox is unable to be removed from the letterbox, this may encourage some people to cause damage to the letterbox bank to try and remove the lockbox to get to the keys.
Many highrise Owners Corporations within Canberra have a rule to state that letterboxes must be locked at all times, as unlocked letter boxes encourage other letterboxes to be broken into.
If the letterbox is left unlocked, and in order to protect the security of the Owners Corporation, the Executive Committee may be able to arrange the removal of the items, normally by the Building Manager. These removed lockboxes would be kept within the Building Managers office for collection.
However this would also depend on the wording of the rules for the complex. At the end of the day the Executive Committee is the elected body of the Owners Corporation and are charged with the control and maintenance of the Owners Corporation. If owners feel that their security is at risk, the Executive Committee may need to act accordingly.
Steve Wiebe
Bridge Strata
E: steve@bridgestrata.com.au
P: 02 6109 7700
This post appears in Strata News #590.
Question: An increase in short term guests is costing our building more in repairs and maintenance. Can we introduce a special levy for any owner whose unit is used for short term accommodation?
We currently have an owner operating a short term accommodation business in our building. They rent apartments privately from other owners and then sublet these to short term guests.
As a result of these activities, we have to employ cleaners for longer hours than would usually occur for a standard strata complex.
In addition, short term guests use the facilities more than residents, and the housekeeping staff employed by the accommodation business are damaging doors and walls with their trolleys.
Residents are also complaining about noisy guests and the inconvenience caused by this business.
We are looking at introducing a special levy that will be applied to any owner whose unit is used for short term accommodation.
Is there a guideline as to how this could be calculated? Or can the majority of owners just agree on a certain amount?
Answer: The Act does allow for the Owners Corporation to proportion the general fund contribution worked out in accordance with a method set out by Special Resolution.
Short Term Accommodation, also known as STR’s, are becoming more prevalent within high rise buildings, as a renting out as an STR is a lot more lucrative than renting out as a long term rental.
Under Part 5, Division 5.2, Section 78 (2) of the Unit Titles (Management) Act does allow for the Owners Corporation to proportion the general fund contribution worked out in accordance with a method set out by Special Resolution. Section 89(2)(b) allows the same for Sinking Fund Contributions. Note, a special resolution will pass unless the votes cast against the motion number not more than ¼ of the total number of votes that can be cast on the motion by people present at the meeting (Including Proxies).
In order to put more of the cost on to the Owners who allow their unit to be used as an STR, you would need for the cleaners to provide in clear terms the amount of standard hours that they complete for the cleaning of the complex, and the amount of additional hours they complete cleaning up after the STR guests. Unfortunately I would not believe that there would be a way to see if the guests are using the facilities, such as pool, spa, sauna or gyms more regularly than an Owner or a resident on a long term lease.
(Section 31) of the UT(M)A 2011 allows for the Owners Corporation to recover expenditure resulting from member or unit occupiers fault. This means that the Executive Committee can arrange for any damage caused to walls and doors from trolleys from the cleaners of the STR’s can be added to the levy of the Unit that caused the issue. I would be encouraging that you ensure that you have evidence of this unit causing the damage, and if there are CCTV Cameras installed, the footage from this can be used as this evidence.
Further to this, the Default Rules do allow for the Executive Committee to issue Rule Infringement Notices on the Units for the use of their unit in a way that is causing considerable annoyance or nuisance to the units around the unit in question.
Introducing a special levy just for the units that lease their units as an STR could also be seen to be discriminatory on the Owners of the Unit, and I would be encouraging you to seek your own independent legal advice on this from a solicitor that specialises in the Unit Titles (Management) Act 2011.
Steve Wiebe
Bridge Strata
E: steve@bridgestrata.com.au
P: 02 6109 7700
This post appears in Strata News #552.
Question: Is it possible to stop short term letting like Airbnb in a townhouse complex in the ACT?
Answer: This will depend on what is contained in the Owners Corporation’s Lease Purpose clause and what zoning the complex is located in.
There have been several Owners Corporations who have instigated a rule to state all leases must be a minimum of 3 months to try and limit the instances of Airbnbs. However, this has not yet been challenged at the ACAT, so no formal ruling has been sought on this issue.
Further to this, it will completely depend on what is contained in the Owners Corporation’s Lease Purpose clause and what zoning the complex is located in. Generally, if you are in one of the outer suburbs, it is highly likely that you are zoned purely residential, which means that Commercial Accommodation is disallowed.
Commercial accommodation is defined under the Territory Plan as: …a room or suite of rooms that is made available on a commercial basis for short-term accommodation. A commercial accommodation unit may comprise a dwelling but not a room or suite of rooms within a dwelling. It does not include any associated facility such as a restaurant, bar or functions room, which may be used by the occupants of the premises but, which is also available for use by non-occupant members of the public.
Therefore if you are zoned as RZ1 to RZ3, these do not allow for commercial accommodation.
Generally, town centres are zoned as CZ zones, and commercial accommodation is permissible within these areas.
Interestingly, the above does not apply to an Airbnb host who rents out a room within the unit they live in, as this is not classed as commercial accommodation. Unfortunately, this means that the Owners Corporation is unable to take any action against this owner.
Steve Wiebe
Bridge Strata
E: steve@bridgestrata.com.au
P: 02 6109 7700
This post appears in Strata News #503.
Have a question about stopping airbnb and other forms of short term letting in ACT strata apartments or something to add to the article? Leave a comment below.
Read Next:
- NSW: Prohibiting Short Term Letting in NSW Schemes – the Devil is in the Details
- ACT: Q&A Difference Between House Rules, Rules and ByLaws
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
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An interstate investor-owner has a commercial arrangement with a nearby hotel for the hotel to offer short term (including single night) accommodation in an apartment in a CZ zone. Hotel guests have access to common facilities, including the gym and carport. Hotel housekeeping staff have repeatedly damaged walls and doors on common property and have blocked a hallways with a large trolley while servicing the room. Additionally the hotel allows its staff to occupy a parking space llocated to the apartment. Are these uses permitted and what steps can adjoining owners take to moderate the impact on their quality of life and building security by hotel “guests”. Should the OC required to communicate concerns with the hotel operator or the owners of the apartment or both.