Make big $$$ Rent out your home as a holiday rental … Or maybe not

If you live in the eastern suburbs of Sydney (and perhaps elsewhere) you’ll have noticed that an increasing number of people are renting out their residential homes as holiday rentals. It seems that every second day someone tells me how much money they have made leasing out their North Bondi or Rose Bay house for a four week period over Christmas and New Year. While there is some hassle involved (cleaning out wardrobes and buying new sheets for example), home owners can make thousands of dollars a week during a period when they had planned to be out of town in any event. A good way to pay for that North American ski holiday perhaps?

I’ve noticed that some local agents have started offering short term holiday rentals as a side business to sales and long term rentals.

But is it legal? That proposition is currently being tested in the NSW Land and Environment Court. The case has been brought by neighbours of a six bedroom holiday rental in Terrigal, which they say has been used regularly for bucks and teenage parties. They contend that, as the street is zoned residential, short term letting of its homes is illegal. According to the Sydney Morning Herald, the relevant council (Byron Shire) says that short term rentals are illegal and it often takes action against owners whose rentals generate complaints. Here is a news report detailing once such case commenced by the Council in February 2013: Click here

Beyond the legality of it all, it is worth asking whether it is fair to rent out your residential home in a suburban street to people on a four week (or two or one week) holiday in Sydney. No doubt the majority of holidaymakers will behave appropriately, but their activities and noise levels nevertheless are likely to be more disruptive to neighbours than those of long term residents.

To read a report on the case in the Sydney Morning Herald: click here

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Homes near Sydney's Bondi Beach can fetch big money as short term holiday rentals

Homes near Sydney’s Bondi Beach can fetch big money as short term holiday rentals

Alex Hart is Principal of Hart Estate Agents and a leading Sydney real estate agent specialising in the eastern suburbs. He is passionate about all things real estate. Find out more about Alex by clicking here. Call Alex on 0418 245 018.

 

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