Although short-stay accommodation is not a new concept, the introduction of AirBnB (also known as ‘AirBed and Breakfast’) and similar short term letting agencies created a worldwide phenomenon resulting in an upsurge in short-stay rentals.
This brought with it excess baggage of building issues including noise, damage to property and overcrowding of apartments.
Legislative reforms came into operation in 2019 to allow owners corporations and residents to take action against apartment owners and guests for compensation, imposition of fines and awards for damage to common property.
Despite the introduction of these regulations, the media continues to report that owners in Melbourne’s high-rise towers are selling properties at a loss and in some instances the association with parties and damage resulting from short term letting is a factor.
The stigma tied to short term letting can affect the reputation and sales of an apartment building.
As a developer, there are measures you can implement in an attempt to limit that these factors do not detrimentally impact on the saleability of your next development. You may need to review or redraft your Contracts of Sale documents to limit your exposure to short term letting-related issues.
Contact our Property team to discuss how we can help you.