Short Term Lets in Adelaide: What Can You Do?

There is no doubt that the rise of short-term lets in Adelaide is having an impact on strata communities. Property owners choosing to lease through platforms like Airbnb is becoming more common, and it’s a great way to earn extra income. However, this can create a range of challenges for strata property owners and committees.

Whether you’re considering short-term letting your own place, or you’ve got concerns about your neighbours, it’s important to understand your rights and responsibilities. We discuss the impact of short-term lets in Adelaide strata properties, what the law says and what you can do if you're dealing with these situations in your community.

What is short-term letting in strata properties?

Basically, short-term letting refers to the process of renting out a property for a short period of time. There are many online platforms that support this, such as Airbnb and Stayz, and most people let their properties for periods of less than 90 days. Property owners generate extra income this way, essentially turning their home (at least briefly) into a hotel.

This approach is becoming more popular, especially in strata properties located in appealing areas. Apartment buildings near the city, for example, often have short-term lets taking place.

How does short-term letting affect strata communities?

Short-term letting in strata is usually very beneficial for the property owner, as they can often earn higher returns than they would with a long-term rental. However, there can be a negative for strata communities.

Firstly, many property owners enjoy consistency and familiarity. Short-term letting brings a greater variety of people into the building, often holidaymakers. In itself, this isn’t an issue, but not many residents appreciate it if short-term letting guests cause unnecessary noise or other concerns.

More visitors also usually mean more wear and tear on shared property, such as carpets, lifts and more. So, there’s a genuine financial concern for many lot owners who pay strata levies. Some owners may even be concerned that property values will be affected by the revolving door of unfamiliar guests.

South Australian laws around short-term lets

In South Australia, short-term letting is basically permitted, however there may be local council regulations to consider. There’s no state law preventing strata owners from letting their property, especially in areas of high demand like Adelaide, Glenelg or Victor Harbor, but zoning regulations may come into play depending on where you live.

In a strata property, the by-laws typically govern what is and isn’t allowed. Even if your by-laws allow for short-term lets, remember that all of your guests must obey the other by-laws, particularly around parking, waste management, noise and the use of common areas.

Can your corporation restrict short-term lets?

Your community corporation can definitely restrict the practice of short-term lets, and this is done through by-laws. If there is nothing in a scheme’s by-laws regarding short-term lets, it would be a matter for discussion at the Annual General Meeting if property owners want to regulate this.

For example, by-laws can be introduced that require owners to seek approval from the strata corporation before short-term letting their property. There might also be specific rules for short-term guests to follow. Ultimately, it’s up to all lot owners to collectively decide what works best.  

What to do if your neighbour is short-term letting

If you become aware that a neighbour is allowing short-term guests to lease their property, you have a few options. Firstly, consider your by-laws. If breaches are occurring as a result of short-term lets (whether in the act of letting or the behaviour of guests), your strata corporation should be notified. You can also approach the lot owner directly with your concerns.

Naturally, if a short-term guest’s behaviour doesn’t meet your strata community’s standards, this should be addressed with the lot owner. If there’s no resolution and breaches continue, the owner may be fined or have further action taken against them.

Ultimately, dealing with short-term lets is something that strata corporations should discuss if they haven’t already. It’s also a good opportunity to review all of your by-laws regarding the renting of properties. With open, honest communication between the corporation and lot owners, strata schemes can find common ground that benefits everybody.

Need help managing short-term lets in your strata?

Short-term lets are a reality of the modern world, and it is always going to be an ongoing concern for strata communities. If you’re not sure how to approach issues with short-term lets in your strata scheme, Strata Management SA is here to help. We offer specialist advice and management services to ensure all aspects of your scheme runs smoothly. To find out more, contact our team today.