A win for the people who live in apartment buildings and want to use the Airbng rental service to increase their income. An owner/resident has just scored a ruling by the New South Wales Civil Administration Tribunal ( NCAT ) that by-laws imposed by Body Corporates can not " prohibit or restrict " the operation of a lot. That means this applicant can legally rent her unit.
Of course, this only applies to New South Wales and it seems certain that the Tribunals ruling will be challenged in a higher court. Living in an apartment building is very different from living in a free standing house. It is a form of " communal living " and we are still sorting out the rules that apply.
For years, some body corporates totally banned any form of pets. It not only applied to dogs and cats, but was zealously applied to such items as caged Canaries and even gold fish. That has been struck down and residents are now free to indulge their passion for pets, provided they obey reasonable noise and hygiene rules.
Smokers are facing ever more stringent rules and their habit is coming under greater containment. Smoking can be forbidden on open verandas where nicotine laden smoke can infiltrate nearby neighbours windows or pollute other open patios. It is fast reaching the stage that some buildings will be declared entirely smoke free, prohibiting smoking even within the living areas of individual units.
This case which resulted in a tribunal ruling will be controversial, but it will attract support and condemnation in equal measure. The woman seeking to rent her apartment is a 38 year old school teacher and she claims that she gained $ 13,000 last year from rental payments. To many people, such income may be the difference in affordability in becoming a homeowner and a restriction places a limitation on our rights to do what we please within the confines of our own home.
The reason the case went to the tribunal was a complaint from a neighbour. This woman was distressed to encounter total strangers in the communal laundry area and she also objected to men sitting on the neighbouring deck and watching what she was doing in her unit. The fact that her neighbour was a school teacher could result in this happening repeatedly because of the extensive school holidays.
One of the problems is that Airbnb rentals introduce an unexpected living change. When people select a unit and make a purchase they usually make that selection taking into account the type of neighbours and the unit lifestyle. That can not be guaranteed. Real Estate has a constant turnover and areas change due to " gentrification "in some cases and loss of appeal in many others. If the locality gains transport links, many placid, low rise areas suddenly blossom towering high rise and a vastly changed economic spectrum.
The rules that apply to apartment living are far from finalised. The final decision will probably involve the High Court and that may be many years into the future. It may well become a form of purchase agreement applied to individual buildings. Some people may be prepared to pay a higher purchase price for certainty that an embargo is in place to prevent any form of short term renting from becoming a reality.
But such an embargo would need to survive court challenges !
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