Government’s short-term rental restrictions could impact tourism and investment, industry leader warns

The New South Wales government’s plans to limit short-term rentals (STR) in an attempt to support housing affordability could put pressure on key industries like tourism and investment, according to Seiko Ma, Managing Director of STR property management organisation Alice’s Home.

Recent media reports suggest that the NSW government is considering placing restrictions on the STR sector to limit short-term rental availability and aid housing affordability. However, Ms Ma cites a report by Airbnb and experts Urbis that shows STR has no consistent effect on affordability across all states in Australia.

“As one of Australia’s premier tourist destinations, Sydney has a pivotal role in promoting the integration of new technologies and creative services within the tourism industry,” Ms Ma said. “Such an approach will not only uphold Australia’s status as a frontrunner in the tourism sector, but will have a beneficial effect on the real estate market.”

She also pointed out that there are distinct differences between the type and location of properties suitable for short-term and long-term rentals, with the most successful STR properties tending to be located close to tourist attractions, transport, and the city centre.

Ms Ma emphasised that property owners who try to manage short-term rentals themselves quickly find it to be a full-time job, with endless requirements such as marketing, bookings, maintenance, and cleaning. She noted that there are specialised STR property managers and online platforms that offer property management solutions at a fraction of the price.

Alice’s Home, under parent company Bodhi Tree Group, was awarded the 2022 AFR Fast Starter, and Bodhitree Technology was recently named by the Financial Times as the 77th high-ranking company in Asia-Pacific for 2024.