Strata by-laws and short term holiday letting – New laws passed

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The New South Wales government has passed legislation to prescribe when strata schemes are able to restrict lots from being used for short-term rental accommodation.

The legislation provides that an owners corporation can prohibit short-term holiday letting where the lot is not the principal place of residence of the person who is giving another person the right to occupy the lot.

A by-law will not be effective to the extent that it seeks to impose a blanket prohibition on short-term rental accommodation. A strata occupant can let their property on a short-term basis provided that it remains their principal place of residence.

Whilst the new laws have passed both houses of parliament, they will only come into force once they have the assent of the Governor. In preparation for this occurring, owners corporations should be reviewing their by-laws to identify whether they comply with the new legislation and to consider whether updates are required.

Lorri Field

Lorri is a director of PDC Law. Lorri combines excellent technical expertise with a common-sense approach to best represent her clients. She is one of few Accredited Specialists in Commercial Litigation in the Illawarra and Shoalhaven. This accreditation is testament to Lorri’s expert knowledge and skill in dealing with commercial disputes. In 2019 Lorri was awarded Regional Lawyer of the Year by Women Lawyers Achievement Awards.

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