Brisbane requiring property owners to apply for Airbnb permit

IN a boon for the hotel sector, more short-term accommodation regulations are being rolled out, with Brisbane introducing permits for property owners looking to run an Airbnb amidst the housing crisis.

Adrian Schrinner, Brisbane lord mayor, announced the plan after year-long review of the short-term accommodation sector.

The plan would see landlords require planning approvals, body corporate support and a 24/7 property manager for all short-term rentals.

“If you are in an apartment building, and your neighbour wants to switch over to short-stay accommodation, the body corporate doesn’t have the power to effectively decide whether that can or can’t happen,” said Schrinner.

“And obviously people in a building will have a view on whether this is a good thing or not. At the moment, they don’t have the power to stop it.”

Properties that fail to meet these new requirements will be left to re-enter the long-term private rental market.

Over 420 properties that are currently being used as short-term accommodation have been identified by Brisbane City Council as not meeting the requirements under the new system, with Schrinner hoping these homes will be injected into the private long-term market.

“These are properties that are in low-density residential areas and are often standalone houses that won’t be approved for short-term accommodation use.”

Schrinner also added that the city council’s rates for short stay rentals are also set to rise ahain.

“They’re not using the house for standard residential purpose, they’re using it effectively for a business purpose. And so we’ve linked the rates then to more commercial rates.”

Unsurprisingly, Airbnb were critical of the new laws suggesting the attention on short stay rentals is misplaced amidst the ongoing housing crisis.

“The council’s own report also found Airbnb properties make up less than one percent of available housing stock,” said Michael Crosby, a spokesman from Airbnb.

“The council’s report acknowledges short-term rentals play a vital role in providing flexible accommodation options, during major events such as NRL Magic Round or Brisbane Festival, the latter of which Airbnb is a proud partner.”

“It’s critical we get the balance of rules and expectations right, because short-term rental accommodation will be vital to the success of the Brisbane Olympic Games in 2032.”

There will be a period of community consultation before the new regulations are introduced, with state government approval also needed.

Apartment undersupply levels are only set to worsen over the next few years, forcing buyers into the pre-commitment market and to pay more for off-the-plan apartments to compensate for higher construction costs.

With long-term renters set to hit with a 28% rise in rents between now and 2028, as low completion rates drive vacancies even further down.