Will government regulation benefit the short-term rental market?
According to Smart Property Investment's Phil Tarrant, the government has responsibilities "to make sure that there are enough properties for Australians to live in and create neighborhoods," but will regulating this new strategy in the property investment landscape be beneficial for investors?
MadeComfy's Quirin Schwaighofer believes that regulation will not be limiting as long as the government continues to engage with communities throughout the process.
He said: "The way it all started was with an 18-month parliamentary enquiry, so [the government] really got engaged with communities, with businesses, with home owners, with stratas, with building managers. So they got everyone's opinion and built a report on that, which is accessible through the government website."
Right now, while the government does not see short-term renting as a negative thing, they will continue to address other concerns raised by stakeholders.
"There have been a first announcement — the government is seeing short-term renting not as a negative thing. However, they would like to make sure that everyone is addressed," Quirin said.
"So the big question that is still open is: Can strata ban short-term renting as a basic? And if so, what majority votes have to be involved? Also, what happens if... there is a complaint, if there is a noise, how can residents act and complain? There has to be a formal process on that. [So in the] long term, you know what you can do."
The business owner added: "If something happens I'm not happy with, what can I do? Who do I approach? Because currently, if someone starts doing that on Airbnb, you don't know the owner, there's almost no way that you can act and complain. And that makes people frustrated... they feel left alone and not involved."
Quirin said that the government has made the right choice to listen and understand the concerns of all parties involved as part of their decision-making for the regulation of short-term rental markets in Australia.
"I think what's happening at the moment is really great—the government takes the time... I'm really confident that they are making a decision that is benefiting the residents of Sydney, [and] also people that come here, and people that own property. A lot of Aussies own property... and have to pay the mortgages. That has to be considered in this equation as well," he concluded.
As in the case of the more traditional property investment strategies that have been used actively in the business of creating wealth for a long time, short-term rental markets could also work perfectly if all relevant factors move in unison—from the government down to the clients.
Tune in to Quirin Schwaighofer and Sabrina Bethunin's episode in The Smart Property Investment Show to know more about their insight into the key differences between short-term versus long-term rentals, as well as how property investors can ensure they’re getting the most out of their portfolio.
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