Australian Coastal Councils Association 2018 Conference. Pre Conference Forum: Short Term Holiday Rental Platforms Case Study: Shoalhaven, NSW

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1 Australian Coastal Councils Association 2018 Conference Pre Conference Forum: Short Term Holiday Rental Platforms Case Study: Shoalhaven, NSW Gordon Clark Strategic Planning Manager Shoalhaven City Council

2 Where is Shoalhaven? NSW South Coast 163 km s south of Sydney Also close to Canberra 4,660 square km s 49 Towns and villages 3 major centres 109 Beaches Population 103,201 (2018 estimate) 54,520 dwellings - approximately 26% unoccupied

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4 Most visited area in NSW outside Sydney 3.2 million visitors Tourism is important to the local economy Tourism output estimated at $523 million Estimate 2,846 jobs (5th) supported by tourism Tourism is Important

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6 Issues Existing & Emerging 26% Unoccupied dwellings Currarong 65% (2 out of 3) Close to Sydney, but getting closer Goldilocks zone (B.Salt) Road access improving Changing property market Growth in day tourism Overcrowding Hyams Beach Pressure on infrastructure

7 Role of the Holiday House Holiday homes or short term holiday rentals - feature of tourism in Shoalhaven for a long time Large part of the overall tourist accommodation supply Previously estimate - in excess of 4,000 holiday homes Approximately 60% of domestic overnight visitors stayed in what could be termed holiday homes

8 Tourism Research Australia s National Visitor Survey (March 2017) 3 years to Sept 2016 Shoalhaven Regional NSW Coastal NSW Rented House/ apartment/unit 17% 9% 11% Own Property (e.g. holiday house) 11% 4% 5% Friend or relatives property 32% 40% 40% Total 60% 53% 56%

9 Recognise the Importance Data gives an insight into the key role this type of accommodation plays in our tourism economy As a result - Council has continued to take an active role in research, advocacy and any regulatory changes related to this form of accommodation

10 Legality Court decisions in Sydney re short term rental of residential apartments 2003 Court decision involving Sutherland Shire Council unit in a complex in Sydney 2006 we removed legal uncertainty - Council amended its Local Environmental Plan to enable the short term rental of existing residential dwellings to continue without consent Understood to be the only Council to take this step at the time Current Shoalhaven LEP consent is not required for the short term rental of a dwelling unless there is an impact on neighbourhood amenity

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12 Current Planning Controls - LEP LEP Clause 7.13 Short-term rental accommodation (1) The objective of this clause is to ensure that residential accommodation may be used as tourist and visitor accommodation for a short term without requiring development consent. (2) Despite any other provision of this Plan, development consent is not required for the use of residential accommodation for the purposes of tourist and visitor accommodation (except backpacker accommodation or bed and breakfast accommodation) if the use is only short term and does not interfere generally with the amenity of the neighbourhood in any way, including by noise or traffic generation. (3) In this clause, short-term means for a maximum period of 45 consecutive days in any 12 month period.

13 Current Planning Controls - DCP Chapter G16 Short Term Rental Accommodation of the Shoalhaven Development Control Plan (DCP) 2014 Contains development standards associated with LEP clause Addresses issues relating to use and impact on neighbourhood amenity

14 Current Planning Controls - Enforcement key difference between old and new LEP - Council can step in to take action if needed against problematic ones Not formally used to its fullest extent yet to require a DA - its general intent has however been utilised Past 12 months: approximately 30 complaints relating to amenity Owners are advised of the LEP provision - Resolved via liaison

15 Emerging Rental Platforms In the past, most holiday homes were rented out via local real estate agents or directly by landowners Local presence or someone who could be directly contacted if neighbours or others had issues (e.g. noise from the night before) Current challenge - many are now rented via the internet and no local management (faceless) presence for immediate issues. % has risen.

16 Emerging Rental Platforms Growth Stayz 2015 Listings 2016 Listings Airbnb Listings Listings Note: data in this table was obtained from Stayz and Inside Airbnb

17 Holiday Homes - Issues Compliance issues pools, fire safety etc Amenity issues and complaints noise, car parking, rubbish etc. Local infrastructure impacts e.g. rubbish dumped in public litter bins Taxation - benefit from funds spent on tourism marketing without making a contribution Use of holiday homes and/or adjacent parks and reserves for large functions such as weddings Competition with other forms of tourist accommodation not a level playing field Impact of party houses Impacts on housing availability and affordability (not confirmed/quantified)

18 NSW Government Issues Paper

19 Issues Paper Council Submission Bulk of the properties largely create no direct issues Important tourism role not been keen to fully regulate Ability to resolve problematic properties is acknowledged - Can step in using current LEP provision Do not want the administrative burden of full regulation Should present suite of options/provisions to choose from Still favour a light touch approach

20 Conclusion We are waiting Some in favour of possibly having a set of protocols, but not full regulation Waiting on the NSW Governments response Research hope it might assist What role can or should the platforms play?

21 Thanks for Listening! Visit: Or