Government’s short-term rental restrictions could impact tourism and investment, industry leader warns
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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.
For more than 10 years we rented our unit in Tea Gardens as a 5-star property available to holiday guests from overnight, weekly or up to one-month periods. We only stopped when government regulations started putting barriers to our continued availability. We no longer offer our property to anyone, and we now only use it as a holiday home.
Forcing us out of the short-term rental market only served to deprive tourists of quality accommodation in Tea Gardens. When we purchased this property, we wanted to use it ourselves and whilst we were happy to rent it out for short term rentals, we had no intention of ever renting it out for long term tenants. EVER
Many owners of short-term rentals do so for the same reason.
All the government will achieve is the removal of quality accommodation available to our travelling public on holidays.