Draft Policy
Short-term Rental Accommodation
Version 1.3
Adopted by Council at its meeting on: TBA Minute No:
Division: Planning and Regulation
Section: Strategic Planning & Urban Design
File Reference: PP15/0005
Historical Reference:
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Policy Objective
Tweed Shire Council has prepared this Policy to:
(i) Enable the use of existing dwellings for short-term rental accommodation;
(ii) Provide clarity to the responsibilities for short-term rental accommodation owners, guests, neighbours and the community;
(iii) Provide a regulatory framework that can mitigate the impacts of holiday rentals on the neighbourhood; and
(iv) Provide a regulatory framework that ensures Council can effectively respond to holiday rental complaints.
Whilst all short-term rental accommodation owners and managers must comply with provisions of this Policy, it has been prepared with an intention to promote the self-regulatory approach.
This Policy seeks to adopt a “good neighbour” principle for the ownership, management and guests of short term rental accommodation
Key Definitions
Holiday rental means use of an existing dwelling or part of a dwelling for short term rental accommodation.
Tweed LEP 2014 means Tweed Local Environmental Plan 2014.
Manager means the person appointed by the Owner (such as a real estate agent), who is responsible for the management of the property.
Short-term rental accommodation is an existing dwelling, or part of a dwelling, that provides short-term accommodation on a commercial basis.
Policy Background
Council, at its meeting of 6 August 2015, resolved to prepare an amendment to the Tweed LEP 2014, seeking to recognise short-term rental accommodation as a land use category. With the change in definition arising from making of the Tweed LEP 2014, commercial rental of dwellings for short term accommodation became prohibited in all zones except R1 General Residential and R3 Medium Density Residential, where serviced apartments are permitted with consent.
Prior to the making of the Tweed LEP 2014, commercial rental of dwellings for short-term accommodation was not prohibited.
This Policy accompanies the provisions of the Tweed LEP 2014 by providing a regulatory framework which outlines the mechanisms enabling owners and managers to manage short- term rental accommodation and to ensure Council can effectively respond to holiday rental complaints and to mitigate potential impacts of holiday rentals on the neighbourhood.
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This Policy has been prepared on the basis of the Holiday and Short Term Rental Code of Conduct, prepared by Holiday Rental Industry Association (HRIA) and supported by NSW Department of Planning & Environment for implementation.
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Part 1
Guiding principles
1.1 This Policy applies to existing dwellings, or part of dwellings located in Tweed Shire local government area and used as short-term rental accommodation.
1.2 The guiding principles for guests and visitors in short-term rental accommodation are:
This is a home,
Treat it as your own,
Respect your neighbours,
Leave it as you find it.
1.3 Short-term rental accommodation must not compromise the amenity of neighbours.
Amenity breaches may include, but are not limited to:
Noise offensive to neighbours at any time,
Exceeding the number of guests and visitors,
Inappropriate street parking causing traffic hazards, significant or ongoing loss of parking for adjoining or nearby residences,
Unmanaged waste disposal,
Inadequate or insufficient response of the owner or the nominated manager to act on complaints handling.
1.4 The Terms and Conditions upon which the dwelling is offered, booked and occupied as short-term rental accommodation must meet the standards provided in Part 4 of this Policy and be incorporated into the contract between the owner of the dwelling and guests.
1.5 Short-term rental accommodation is a dynamic industry. Accordingly, the performance standards set out in Parts 3 and 4 of this Policy are focused on the desired outcome, rather than on prescription of rigid “one-size-fits-all” solutions.
1.6 A copy of this Policy must be provided, or made available to all guests and visitors of dwellings used as short-term rental accommodation.
1.7 Any breaches of amenity by residents or their guests in association with short-term rental accommodation may result in compliance action and associated fines, as outlined in Part 5 of this Policy and in accordance with Council’s Fees and Charges Schedule.
1.8 Owners and managers should operate in accordance with a best practice approach towards effective complaints handling and being a good neighbour.
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Part 2
Matters for Council consideration
This part of the Policy outlines matters subject to Council consideration. Compliance with this part is required to consider use of a dwelling for short-term rental accommodation as Exempt
Development and will be required at the Development Assessment stage.
Any complaints related with matters subject to this part of the Policy should be directed to Council in the first instance.
2.1 Requirement to lodge development application
2.1.1 A development application is required if the use of a dwelling for short-term rental accommodation exceeds 62 days per calendar year.
2.1.2 Use of a dwelling as short-term rental accommodation for less than 62 days per calendar year is considered exempt development, if consistent with:
a) The relevant provisions of Schedule 2 (Exempt Development) of the Tweed LEP 2014, and
b) Part 2 of this Policy.
2.2 The Property
2.2.1 Short-term rental accommodation must only be conducted in association with dwellings that have been lawfully constructed and comply with Building Code of Australia requirements. Under the Tweed LEP 2014, dwelling “means a room or suite of rooms occupied or used or so constructed or adapted as to be capable of being occupied or used as a separate domicile”. A dwelling house “means a building containing only one dwelling”;
2.2.2 Such dwelling must be located in a zone where dwellings are permitted with development consent under the Tweed LEP 2014;
2.2.3 Exempt development provisions do not apply for dwellings located in a bush fire prone area;
2.2.4 The maximum number of overnight guests permitted at the property must not exceed 2 (two) per bedroom plus an additional 2 (two);
2.3 Contact details
2.3.1 Dwellings used for short-term rental must be registered on Council’s website.
2.3.2 A business identification sign containing the contact phone number of the owner or appointed manager must be displayed in a location visible from the public domain.
The sign must be a maximum of 0.2 m2 and limited to one sign per street frontage.
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All short-term rental accommodation websites must contain contact details identical with those provided on a business identification sign.
2.3.3 Owners and/or managers must register the use of the dwelling for short-term rental accommodation on Council’s register, prior to the initial lease.
2.3.4 Subclause 2.3.3 applies to dwellings used for short-term rental accommodation approved through the DA process and considered as exempt development.
2.4 Car parking
2.4.1 Car parking must be provided on site at the rate outlined below:
a) 1 space for short-term rental accommodation of 1-2 bedrooms, and b) 2 spaces for short-term rental accommodation of 3 or more bedrooms.
2.5 Waste disposal
2.5.1 Waste management is to be consistent with Section A15 of the Tweed Development Control Plan 2008 (Waste Minimisation and Management);
2.5.2 Bins should not sit on the kerbside for longer than 1 day before or after collection.
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Part 3
Roles and Responsibilities of Owners and Managers
This Part of the Policy has been prepared with an intention to promote the self-regulatory approach. Matters outlined in this Part are the responsibility of the owners and managers of dwellings used as short-term rental accommodation. Any complaints related with this Part of
the Policy should be directed to the owners and/or managers in the first instance.
3.1 Advertising the property
3.1.1 Short-term rental accommodation must be offered in a clean, safe and habitable condition.
3.1.2 The property must not be offered, described, or advertised in a false or misleading manner, for a purpose inconsistent with this Policy, or for more than the maximum number of guests or visitors determined in accordance with this Policy.
3.1.3 The number of visitors should be reasonable for the residential setting. Large gatherings may be considered an interference with amenity.
3.2 Owners and/or Managers must:
3.2.1 Make available to all tenants the copy of this Policy and the Terms and Conditions between owners and guests, outlined in Part 4 of this Policy.
3.2.2 Be available to act at the time of the complaint to ensure that ameliorating actions are undertaken promptly, including availability to respond on site.
3.2.3 Use their reasonable endeavours to ensure that property used for short-term rental accommodation complies with this Policy.
3.2.4 Outline to guests and visitors the consequences of not complying with the Terms and Conditions.
3.2.5 Cooperate with other stakeholders including industry associations, tourism bodies, Tweed Shire Council and other government authorities to enhance the image, standards and contribution of short-term rental accommodation to the Tweed Shire economy.
3.2.6 Provide general, after hours and emergency telephone numbers to guests and neighbours, as outlined in section 2.5 above.
3.2.7 Hold a minimum of $10 million public liability insurance.
3.2.8 Be based locally, or have a local representative to manage guests and property issues.
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Part 4
Terms and Conditions between Owners and Guests:
Performance Standards
This part of the Policy provides the Performance Standards for the Terms and Conditions of the Contract between the owner and the guests.
The Terms and Conditions upon which a property is offered, booked and occupied for Holiday Rental under the contract between the owner and guest must be consistent with the
requirements of this Policy.
4.1 Introduction
4.1.1 Terms and Conditions must be in writing, cover the matters specified in Parts 1, 2 and 3 of this Policy and be legally enforceable.
4.1.2 Owners and managers may adapt provisions in their Terms and Conditions to better suit their own circumstances, provided they are “equivalent solutions”.
4.1.3 Equivalent solutions are Terms and Conditions that are designed to achieve the required Performance Standards which are different from the deemed solutions.
4.2 General Content of Terms and Conditions:
a) adequate identification of the property;
b) name, address and contacts of the parties;
c) details of the occupancy, including fair provisions for variation and termination;
d) explanation of the legal rights and status of guests as licensees to the extent possible within the holiday rental exception in residential tenancy legislation;
e) reserve the owner’s right to terminate the occupancy and evict for breach;
f) make effective and fair use of security deposits or bonds to procure compliance;
g) where the property is part of a strata or community title scheme, require guest and visitor compliance with owners' corporation by-laws and include damage to common property as a ground for drawing upon the security deposit or bond;
h) the maximum number of guests and visitors permitted at the property must not exceed 2 per bedroom plus an additional 2;
i) guests are responsible for visitors at all times;
j) obligations to preserve residential amenity, outlined in Parts 1 and 3 of this Policy;
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k) prohibit offensive noise and antisocial behaviour and enable the owner or the manager to exercise all legal rights and remedies to promptly deal with any breach;
l) prohibit “party house” and non-compliant functions;
m) regulate guest and visitor parking to ensure compliance and consideration for neighbours;
n) regulate garbage storage and disposal to ensure cleanliness and amenity of the property;
o) provide adequate information on complaints handling;
p) set out the consequences of not meeting Terms and Conditions and enable the owner or the manager to exercise all legal rights and remedies to promptly deal with any breach;
q) specify safety measures and hours of use of the swimming pool;
r) clarify an appropriate use of deck and balcony areas;
s) specify on-departure arrangements for keys, security and maintenance of the property;
t) clarify process of dealing with damages and breakages.
Part 5 Compliance
5.1 Breaches to this Policy may result in:
5.1.1 Penalty Infringement Notices;
5.1.2 Non-compliance with Schedule 2 Exempt Development of the Tweed LEP 2014;
5.1.3 Prosecution.
5.2 Best practice application of this Policy
The following provides an overview of best practice strategies that will assist in ensuring that short-term rental accommodation is carried out appropriately with consideration for the ongoing
amenity of the existing residential area.
5.2.1 Owners and managers should operate in accordance with a best practice approach towards effective complaints handling and being a good neighbour;
5.2.2 Owners and managers must retain a log of related communication and actions taken.
The log is to include the following information:
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a) Date and time received,
b) Name and designation (e.g. Guest, neighbour, council, police etc.) of complainant(c) contact details of complainant,
c) Nature of complaint,
d) Action taken (by whom and when), and
e) Outcome and/or further action required (e.g. community consultation, meet with Tweed Shire Council, meet with local police, review management systems or issue resolved).
5.2.3 Owners and managers must respond to complaints professionally and take effective actions to manage any problems.
5.3 Consequences of not complying with this Policy
5.3.1 Where required to ensure compliance, owners and managers must make Guests and Visitors aware that, depending on the Terms and Conditions of the contract between the Guest and Owner, the consequences of not meeting the requirements of this Policy can include enforcement action from:
a) The owner and its agents including manager and security services, b) Tweed Shire Council, and
c) In some instances, the Police.
5.3.2 Depending on the circumstances, compliance action could result in termination of permission to use the property for short-term rental accommodation, eviction, loss of rental paid, deductions from security deposits and extra charges.
Related Legislation
a) Tweed Local Environmental Plan 2014 b) Residential Tenancies Act 2010 c) Boarding Houses Act 2012.
Forms
Short-term rental accommodation register.
Review Period
One year after implementation.
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Useful Links
a) Tweed Shire Council website b) Division of Local Government c) Holiday Rental Industry Association
d) Holiday and Short Term Rental Code of Conduct
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Version Control:
Version History
Version
#
Summary of changes made Date changes made
1.1
First draft for internal consultation 28/10/2015
1.2 Revised draft for public exhibition 10/11/2015
1.3 Post-exhibition, final version 17/03/2016
