The Airbnb Challenge

Whilst Airbnb has created an economic opportunity for numerous residential owners, it has brought with it a number of challenges in Body Corporate administration. The conversion of many units from long term residential to short term letting brings with it some inevitable pressures on facilities and occupants which need to be managed to deliver equitable outcomes to all.

 

A recent Tenancy Tribunal decision secured on behalf of a BBCL Body Corporate emphasises the Tribunal will take action where utilisaiton of a unit breaches the quiet enjoyment rights of other unit occupants.

 

The Body Corporate concerned was subjected to roudy behaviour by Airbnb tenants which caused continuing conflict with other occupants and disturbed them on a regular basis.  Over a period of 4 months a number of breach notices were issued against the landlord of the unit but were ignored.  With little alternative option the Body Corporate applied to the Tenancy Tribunal for relief citing rules prohibiting:

  1. Use other than residential without the Body Corporate’s prior consent.
  2. Adverse noise and conduct.

 

The judgment of the Tribunal issued on 3 February 2020 granted the Body Corporate an order:

Prohibiting the owner from renting or leasing the premises as short term accommodation in the nature of holiday accommodation of a period of less than 3 months.

 

Since receipt of the judgment the owner has sought the Body Corporate’s approval for consent and put forward a range of control options.

 

Whilst the judgment does not extend to approving the right of a Body Corporate to prohibit Airbnb or other short term accommodation, it clearly sets out the Tribunal can and will restrict letting when an owner simply fails to recognise the obligations of ownership and fails to abate a continuing nuisance.

 

Summary:

  • All occupants must comply with lawful Body Corporate rules
  • The Tribunal will prohibit short term letting in the face of repeated rule breaches

 

A copy of the judgment can be obtained on the link below

UTA_Tribunal_Order 030220