Key Takeaways:
- Brisbane City Council is introducing new regulations to restrict short-stay rentals in low-density suburbs
- Property owners in low or low-medium zoned areas will need to obtain a permit or cease operating as a short-stay rental
- The council aims to return hundreds of homes to the long-term rental market and ensure short-stays operate in inner-city and tourism areas
- Owners who fail to comply with the new regulations may face fines of over $140,000
- A three-strikes policy will be implemented to address complaints and disturbances caused by short-stay accommodation providers
Introduction to New Regulations
The Brisbane City Council is set to unveil significant reforms to the short-stay market, including a new permit scheme and a three-strikes policy. The changes aim to restrict short-stay rentals in low-density suburbs, with property owners in low or low-medium zoned areas required to obtain a permit or cease operating as a short-stay rental. The council hopes to have the new regulations in place by July 1 next year, following a consultation period. The proposed changes will be included in a new local law that will need state government sign off before it is implemented.
Finding a Balance
Lord Mayor Adrian Schrinner believes the move will help return hundreds of homes to the long-term rental market while ensuring short-stays can still operate in parts of the city. The council wants short-stay providers to operate in inner-city and tourism areas, rather than in low-density suburbs. Schrinner emphasized the importance of protecting the character and amenity of Brisbane’s suburbs, stating that "tourism shouldn’t come at the expense of suburban amenity." The council’s goal is to strike a balance between supporting tourism and economic activity while preserving the peace and lifestyle of Brisbane’s suburbs.
Regulations and Penalties
The new regulations will require owners who can still lease their properties on the short-stay market to obtain a permit before doing so. The price of the permit is yet to be determined, but it will be a cost recovery measure. Operators will need to nominate a 24-hour contact to respond to complaints within an hour and report back to the council within a day. They will also need to provide house rules to guests and obtain public liability insurance. Failure to comply with the regulations may result in fines of over $140,000. Additionally, a three-strikes policy will be implemented, where operators who receive three warnings from the council over a three-year period will have their permit revoked.
Impact on Rental Market
The council’s changes are intended to address concerns that short-stay rentals are contributing to the rental crisis in Brisbane. However, a review conducted by the University of Queensland in 2023 found that short-stay accommodation providers, such as Airbnb, are not a significant factor in rent hikes. The report found that short-stays take up a small proportion of dwellings in Queensland, and that the effect of short-stay rentals on rent increases is either not significant or small. The report recommended introducing a registration system for short-stay properties but did not support statewide restrictions.
Implementation and Next Steps
The Brisbane City Council’s proposed local law will need to be approved by the state government before it can be implemented. The council has already applied a rates surcharge to residents who lease their property on the short-stay market since 2022. The new regulations are expected to be implemented by July 1 next year, following a consultation period. The council will write to almost 500 home owners operating as short-stay providers to inform them that they do not or are unlikely to receive the relevant planning approvals. The changes are intended to provide more certainty for residents and visitors while helping to strengthen the supply of homes in Brisbane’s suburbs.