If you're an owner-occupier in a NSW strata block, living in your unit full-time and renting out a spare room on Airbnb to help with the bills, you have rights if neighbours try to close you down. RMB Lawyers Partner JOSH BIGNELL explains.
You're doing everything by the book - registered on the STRA (Short-Term Rental Accommodation) premises register, present during stays (so it's a "hosted" short-term rental), no wild parties, quiet guests ... But then the owners corporation and a few grumpy neighbours start bombarding you with breach notices, claiming you're violating their anti-STRA by-law.
Threatening letters, heated AGM rants, constant complaints - it's full-on harassment. This is the reality for folks like Alex Rivera (name changed), a Wollongong IT worker who's been battling his strata over perfectly legal hosted rentals.
Under NSW law, specifically section 137A of the Strata Schemes Management Act 2015, owners corporations can pass by-laws banning short-term rentals - but only for non-hosted ones, where the lot isn't the owner's principal residence.
If you're living there and hosting guests (like renting a room while you're home), no by-law can stop you. Alex's owners corporation had a generic anti-STRA by-law, but they were misapplying it to his hosted setup. The harassment escalated but Alex fought back - and won. Here's what unit owners in his shoes can do:
Firstly, politely educate. Send a calm letter to the strata committee and manager citing section 137A and Fair Trading guidelines, proving your setup is hosted and your unit is your principal residence (e.g., via bills, voter registration).
If that fails and the OC keeps issuing invalid notices or harassing you, head to mediation via NSW Fair Trading - it's free and compulsory for most strata disputes.
Secondly, apply to the NSW Civil and Administrative Tribunal (NCAT). seeking orders under section 150 to invalidate the by-law if it's being wrongly applied or is oppressive. NCAT can also order the owners corporation to stop enforcement actions, retract notices, or even pay your costs if they've acted unreasonably.
For ongoing bullying like defamatory emails or intimidation, consider an Apprehended Violence Order (AVO) through local court if it feels threatening, or defamation claims if false accusations harm your reputation.
Alex went to NCAT, provided evidence of his residency and hosted stays, and got orders declaring the by-law inapplicable plus stopping further notices.
Despite the unnecessary stress and cost, Alex was able to continue his Airbnb hosting. Bottom line: don't let strata bullies win.
Contact RMB Lawyers for any further information about this strata law. Your first step should be to contact our office to arrange a free consultation. You can contact us by by phone or our 'Ask a Question' tool on our website.