Should government crack down on STRA if the impact is unclear?
In the absence of clear data showing that fewer short-term rentals will help lift vacancy rates, the industry is urging a cautious approach.
Seiko Ma, managing director of short-term rental management business Alice’s Home, argued that the limited or unclear gains from increased restrictions on short-term rental accommodation (STRA) – such as those being considered in a current NSW review – aren’t worth the high price on tourism and innovation.
Citing a recent report by Airbnb and Urbis, Ma said that limiting STRA would have no consistent effect on affordability across all states in Australia, yet it might deter both investment as well as industry.
“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,” she said.
Ma is concerned that not only will potential changes from NSW make the country’s biggest tourism market unfriendly to innovation in the sector, but that other states will soon follow suit, spreading the position across the country.
Ma argued that property owners should be allowed to rent their properties in the way they choose, without further fees or taxes.
“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. By making the country more appealing to both visitors and investors, we can ensure continued growth and sustainability in these vital industries,” Ma said.
She noted that strong-arming property owners to change the use of their property might have substantial impacts on the asset’s viability within their portfolio strategy.
“There are some distinct differences between the type and location of properties that are suitable and not all investment properties are suitable to be STR properties,” Ma remarked.
“For one thing, the most successful STR properties tend to be located close to tourist attractions, close to transport and the city centre, whereas long-term rentals can be anywhere, including in family-friendly suburbs.”
Ma also noted that limiting STRA would have an impact on the businesses that have sprung up to support the industry, and livelihoods of the workers within it.
“Property owners who try to look after the process of short-term rentals themselves quickly find it’s a full-time job. The requirements are endless: marketing the property, constantly taking bookings, maintenance and cleaning, preparing the property for each new quest, and more. Fortunately, there are property managers who focus specifically on STR,” Ma noted.
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