Short Term Rental Accommodation Industry Regulation Challenges

I’ve been involved in industry advocacy for the past decade since Welcome In was established. First and foremost as an owner and manager of two short term rental accommodation (STRA) properties in WA and then as a business development consultant to the niche sector within the tourism and leisure industry.

Industry regulation has been a process for most of the past decade with digital disruption. I first noticed such disruption when a friend told me about Stayz, now HomeAway. This was back when Stayz was owned by Australian business, Fairfax, who acquired it off founders in 2005, later acquired by Expedia in 2013 - a global corporation.

When it was first introduced to us it would’ve been 2008/9. An owner could list their property and a guest could book it. There were also other basic management administration functionalities such as a cleaners log for example. We paid an annual listing fee of I think $160 per year, per property and the commission used to be a flat rate per day booked fee. I think it was $11.90 from memory or maybe it was $8.90 - I can’t remember.

Fast forward a decade and there are many other booking portals or Online Travel Agents (OTA’s) that allow for online bookings including Airbnb, Booking.com etc. All contributing to an increased supply of home style short term accommodation that I personally grew up with and loved - it was exciting to think we could rent our property in the Perth Hills short term while retaining it for ourselves to utilise when we returned home for visits (while we were working and living interstate in QLD). This increased supply was met with an equal, if not higher demand. Consumers wanted residential style short term accommodation because it was homelier and more affordable for group or family travel.

It’s not the only industry that’s been disrupted though. There are many more examples including Uber, Netflix, Scribe, Isubscribe etc - even Gumtree and RealEstate.com.au were early innovators in this space in Australia. So many more emerging right in this very moment. There are start up incubators actively seeking technological solutions to many of the world’s problems and inventing collaborative consumption businesses left right and centre right now. Peer to peer, cutting out the middle person/ business.

I could go on and on about this. It’s a reality. The world is changing and all we can do is embrace it and keep it fair and safe. Each state and territory in Australia is at different stages of review and regulation. Here’s a summary;

Western Australia

“The McGowan Government is adopting nearly all of the recommendations arising from the recent parliamentary inquiry into short-stay accommodation. 

The whole-of-Government response to the 2019 Parliamentary Inquiry Levelling the Playing Field - Managing the impact of the rapid increase of Short-Term Rentals in Western Australia aims to introduce better management of the industry at a community level. 

Led by Jessica Shaw MLA, the inquiry presented 10 recommendations to improve outdated and inconsistent policy governing short-term rentals, and create greater certainty for the tourism industry, accommodation providers and guests.  

The inquiry found that short-term rentals are a genuine income source for some people and are increasingly widely used by guests; however there was no regulation of the industry and numerous examples of adverse impacts on neighbours and local communities.” (McGowan Government, Western Australia). Read More.

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I feel like I'm getting to that stage in my career where I know a bit about the short term and holiday rental accommodation industry in Australia and so if you'd like to read more articles to help you grow and sustain your operation/ business you might like to subscribe (free) to receive my blog articles in your lovely inbox.

I'm also on Facebook! Instagram & Linked In!

Have a superb day!

Cheers

Natalie :)

Google’s Recorder Now Transcribes

I’m a bit of a Google fan, using G-suite to run my business and making use of many Google apps. I’m rather excited that the Recorder app now transcribes.

Actually I was hunting for an app like this a few years ago when I had to chair and take minutes for a Holiday Rental Industry Association (HRIA) now Australian Short Term Rental Accommodation (ASTRA) industry meeting.

Technology continues to deliver by solving problems but be aware as they can become obsolete as swiftly as they are launched. I tend to keep within the Google suite for integration and compatibility even when there is temptation to trial improved competitor versions.

Make sure you seek permission to record conversations and meetings in advance though.

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I feel like I'm getting to that stage in my career where I know a bit about the short term and holiday rental accommodation industry in Australia and so if you'd like to read more articles to help you grow and sustain your operation/ business you might like to subscribe (free) to receive my blog articles in your lovely inbox.

I'm also on Facebook! Instagram & Linked In!

Have a superb day!

Cheers

Natalie :)

Want to know about Development Applications (DA)?

I thought I’d never have to hear about DA’s again since departing local government and establishing my own consulting business. Sadly that is all I hear about as I support the Australian Short Term Rental Accommodation (ASTRA) industry association fight for fair industry regulation.

DA = Development Application, whereby you seek permission off your Local Government Authority (LGA), guided by a local or state planning law, to change the use of or develop land.

So why I am all of a sudden hearing DA in daily conversations again when I am no longer sitting in on council meetings?

It is because in 2009 WA Planning released guidelines which promoted local regulation of Short Term Rental Accommodation (STRA) in Western Australia. While they state "In general, holiday homes should be residential dwellings on freehold lots." they also propose "Identification of preferred areas for holiday homes in local planning strategies based on sound planning principles." and recommend "that holiday homes be introduced as a use class in the zoning table of local planning schemes, and be made a D or an SA use (discretionary or discretionary subject to advertising)."

This is where the DA comes into play. If the LGA in which you operate has adopted a local STRA policy or regulation, then you will either need to go on a register and/or formally apply for a change of use from residential to whatever they define the use, in most it is Special Residential and therefore residential properties let short term are grouped with hotels, traditional bnb’s, serviced apartments, lodging and boarding houses.

We are challenging regulators over this requirement to change use as STRA properties are still used as residential dwellings, shorter term. That’s another topic for another blog article.

I have just processed my first DA on behalf of a STRA owner and manager and so I am familiar with the process. I also have a strong local government background working for Mandurah, Ravensthorpe, Western Downs (QLD) and Darwin LGA’s directly, and others as a contract consultant.

If you need assistance in submitting a Development Application (DA) for Short Term Rental Accommodation (STRA) in Western Australia please do not hesitate to contact me for more details on the service and fee I offer natalie@welcomein.com.au.

If you are also concerned about STRA being redefined as a commercial use, or maybe you want to connect with other industry stakeholders, learn, educate and so forth, then I strongly encourage you to join the Australian Short Term Rental Accommodation (ASTRA) industry association at www.astra.asn.au. I have also formed a closed WA ASTRA members Facebook group and all WA members will be invited to review the draft Position Statement soon to be released by the WA Government as the next stage in the STRA regulation enquiry.

Do you have permission to rent your residence short term?

I’ve been involved in fair Short Term Rental Accommodation (STRA) industry advocacy for almost a decade. In Western Australia, we’re at the pointy end of a long drawn out fight for the survival of a traditional, highly sought after, accommodation experience for travellers who want to stay in a residential property/ home away from home for a holiday, business, education, health and many other reasons.

As a child we used to mix up our holidays with nature based camping, park stays on the water in Dunsborough and short term holiday rentals. As a young adult my friends travelled in groups and Short Term Rental Accommodation (STRA) was our preference. When I had on operation in Noosa we found a STRA/holiday home because we had young children. The list goes. We know this residential style of short term accommodation is legitimate and yet here we remain fighting for long term sustainability because this sort of accommodation is very popular now and there are a small number of dodgy operators who don’t care about guest safety or neighbourhood amenity.

We have a patchwork of local regulations because the planning guidelines are outdated. There is no clear definition for STRA as a residential use. Regional and rural locations usually welcome them because they provide needed accommodation and bring visitors to boost their economy, metropolitan LGA’ s are influenced by large corporate lobbyists deeming STRA commercial because they consider STRA competition and want to level the playing field. They hone in on a very small number of neighbour complaints and paint the STRA industry as a nuisance destroying local communities. Unbelievable really.

Reading through the comments provided in the WA inquiry submissions I’m quite frankly - gob smacked! One comment alluded to a resident feeling like she’s living in a ghost town because most of the properties on her street are STRA. Really? Is this actually being considered as a reason to tell owners what they can and can’t do with their properties?

I love that half the properties on our street are vacant. The one across the road a few years ago had permanent residential tenants who had drug and domestic violence issues, with police called out numerous times, screaming down the street through the day and night. The resident actually turned up on my doorstep high as a kite one day. That was scary. Another time when we were renting while searching for a new home we found ourselves severely sleep deprived from a permanent resident next door (owners) dog barking whenever they weren’t home - which was often. I had two young toddlers and I have to say that was not a time I was able to peacefully enjoy my residence without noise disturbance.

We are offering home style accommodation, short term. Some Local Government’s will require you to complete a Development Application (DA) to seek planning permission to rent your residential property short term. Depending on the local planning policy STRA will be either be considered;

“‘P’ means that the use is permitted by the Scheme providing the use complies with the relevant development standards and the requirements of the Scheme;

‘D’ means that the use is not permitted unless the local government has exercised its discretion by granting planning approval as required by clause 4.8;

‘A’ means that the use is not permitted unless the local government has exercised its discretion by granting planning approval as required by clause 4.8 after giving notice in accordance with clause 9.4; and

‘X’ means a use that is not permitted by the Scheme.” (Cottesloe Town Planning Scheme 3).

To find out if you have permission to rent your residential property short term you will need to research your local government authority’s policy on STRA, search for the local planning scheme and the most closely fitting accommodation definition then locate the zoning table. In Cottesloe for example some residential precincts it’s not a permitted use or ‘X’. Other zones it’s ‘D’ or Discretionary meaning the administration will engage with neighbours and consider the Development Application and the local councillors will decide by majority vote if you are granted permission.

If you want to rent your residential property short term in Mandurah then you have permission to go ahead subject to registration. Yay! How great is that. The situation is similar for the Shire of Murray.

As a leisure management professional, with a background working in local government, experience as a STRA owner and manager, 3 + years on the Board of the national Australian Short Term Rental Accommodation industry association I am well positioned to provide consulting services to assist you in navigating regulation and seeking permission, assist you in becoming/ help finding a professional property manager. If you’re already an established agent/ contract property manager maybe I can help you grow your business.

Please complete the contact form below (in the footer) if you wish to connect. I’d be happy to jump on a telephone or teleconference call to introduce myself and determine what problems I can help you solve. There’s a bit about me below including a link to my Linked In profile.

If you’re a Short Term Rental Accommodation (STRA) stakeholder (owner, manager, supplier etc) I recommend reaching out to the national industry association Australian Short Term Accommodation (ASTRA). They are continually advocating for fair industry regulation across Australia.

If you’re in Western Australia, I have formed a WA stakeholder group on Facebook and warmly welcome you to send me a join request.

Happy days!

On your doorstep or in close proximity….

Everyone knows how to use Google Maps but most won’t before they search for their ideal short term rental or holiday accommodation. I want you to visualise yourself as a traveller without a car. I say this because you want your property to be appealing to all travellers. Also because many want to get out among the elements, enjoy a bit of exercise rather than jump back in their car.

I want you to imagine that you’ve spent all day travelling and have just arrived late afternoon. You’re tired yet eager to see the sights. You probably don’t feel like cooking and a short walk will justify a cheeky beverage at your favourite inner city waterhole (pub).

You want to be immediately immersed into the unique culture of this place and enjoy the local buzz.

Now try and recreate that one such experience in a paragraph in your property description. Take the prospective guest on a story telling journey highlighting what is great that is close by for them to easily experience as soon as they arrive.

I’ve even taken a screen shot of Google Maps (above) with the journey mapped out. I used a landmark close by instead of my own address. Note distance, time and scale provided in this screenshot which is helpful information to include.

Now here is how I might draft such a paragraph;

“There is much to experience in close proximity to your holiday rental in Halls Head, Mandurah. After you arrive we know you won’t feel like cooking, and will be keen to immerse yourself in the Mandurah culture, so why not take a short stroll (2.5kms, 30 minute walk) into Mandurah City and enjoy a bite and bevvy on the water at Bar Therapy? Before you arrive at your short term accommodation we’ll give you a list of fabulous experiences right on your doorstep, or very close by”.

Note the key words I’ve used in this paragraph, which will greatly assist in your short term accommodation being found in Google searches. Location (including suburb and city), holiday rental, short term accommodation. All these words will be inserted into Google searches, possibly even searches on the short term rental accommodation managers website if the prospective guest is savvy enough to #bookdirect.

Why not make this a little project and send me a link to your listing to show off your story telling skills to natalie@welcomein.com.au.

Nominations for the Holiday Rental Industry Association (HRIA) Board close today 19 April 2017

A short message reminding niche short term accommodation rental (holiday corporate short stay homes/ houses) stakeholders (owners, managers, suppliers) in Australia that nominations close for the Board of Directors today, 19 April 2017.A few facts;

• This is a young national not-for-profit organisation which requires broader representation across all regions in Australia.

• You can join as an Associate (free) with no voting rights or member benefits.

• Membership starts from $99 per year so it is extremely affordable.

• You must be a member to nominate for the Board of Directors therefore you must register here, pay online (and send notification/ payment evidence to the administration) by tomorrow's deadline.

• I am considering putting myself forward once again. If you do decide to join and you see my name on the nominee list I would be very grateful for your support.

If I am elected my focus will be on building memberships, member engagement, education and other benefits.I am a national short term accommodation rental business development consultant (Welcome In) based in Western Australia. Here's a little bit more about me.I recently drafted an editorial with my perspective on the impending regulation of short-term rental accommodation in Australia. The decision from the NSW parliamentary enquiry is due to be handed down today (Wednesday 19 April 2017). While this is a focus area of mine I also think it is time the HRIA focus on engaging with members on the grassroots level in communities across Australia.As a HRIA member I am sure you will receive benefits that far outweigh your investment especially if the right people are elected at the May AGM.

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I feel like I'm getting to that stage in my career where I know a bit about the short term and holiday rental accommodation industry in Australia and so if you'd like to read more articles to help you grow and sustain your operation/ business you might like to subscribe (free) to receive my blog articles in your lovely inbox.

I'm also on Facebook! Instagram & Linked In!

Have a superb day!

Cheers

Natalie :)