Victims of Holiday Letting (VOHL) applauded the unanimous vote by Council for the creation of a 90-day cap for STRA in residential zones and the proposed boundaries for the 365-day precincts. VOHL was appalled that the decision making for this process has been taken away from Council, by the state government, at the last moment.
There is ample academic research that provides evidence that STRA has disrupted residential amenity, [severely decreased] the availability of long-term rentals, has increased rents and impacted housing affordability.
The following examples illustrate that STRA regulation in tourist hot spots has helped communities: Los Angeles, which had the second highest number of STRA listings in the US, and eighteen cities in Los Angeles County all enacted a total 90-day cap.
Within twelve months there had been a more than 50 per cent decrease in STRA listings with the majority converting to permanent rentals.
Accompanying was a four per cent average decrease in rental price.
The island of Oahu in Hawaii has created four tourist precincts.
Residential dwellings in these precincts are allowed to short term rent for 365 days a year. They are required to be licensed, not just registered (as in NSW), and this requires a rigorous scrutiny. All other residential zones allow STRA but the maximum period for one letting is 90 days. There are now minimal STRA listings in residential zones with a consequent improvement in residential amenity and rental availability.
Berlin has a 90-day cap, but if an owner wants to short term rent their dwelling, they must reside in it for a minimum of 50 per cent of the year.
When this cap was introduced the majority of former STRA converted to permanent rental, which benefitted residential amenity and those needing long-term rentals.
There are many other examples of STRA regulation. Based on overseas examples, Byron Council’s ‘soft touch’ regulation proposal will lead to an increase in permanent rental availability.
