Short-term Letting Body Corporates: Clearing Up the Confusion
Recent media coverage of a Queensland court decision regarding short-term letting in a body corporate has caused quite a stir. However, it’s crucial to understand the specific context of this case before jumping to conclusions.
The Fairway Island Case: A Unique Situation
The case involved a body corporate at Fairway Island that successfully prohibited short-term letting through a by-law. This was possible only because the body corporate operates under the Building Units and Group Titles Act 1980 (BUGTA), legislation predating the current Body Corporate and Community Management Act 1997 (BCCMA).
Due to a legislative quirk, some bodies corporate in older, staged developments remain under BUGTA, which, unlike BCCMA, doesn’t explicitly prevent by-laws restricting short-term letting.
QCAT and the Current Legal Position
Our newsletter on the QCAT appeal, which finalised the legal position for every BCCMA regulated body corporate, can be found here.
None of the findings in the QCAT appeal decision have been disturbed by the Fairway Island decision. The BUGTA does not have a section 180(3) like the BCCMA does.
There are more than 50,000 bodies corporate in Queensland. This decision applies only to the 500 or so residential ones who remain regulated by the BUGTA.
If you aren’t sure what legislation your body corporate is regulated by, just have a look at your last AGM or committee meeting papers. If they have references to BCCMA plastered all over them, then you have your answer.
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Short-Term Letting in Your Queensland Body Corporate
While the Fairway Island case highlights a unique situation, it’s important for all Queensland body corporates to understand the complexities of short-term letting. Here’s a breakdown of key considerations:
1. The Queensland Legislation:
Most Queensland body corporates operate under the Body Corporate and Community Management Act 1997 (BCCMA). This legislation, along with QCAT rulings, generally prevents by-laws from outright banning short-term letting.
2. Permitted Restrictions:
While a complete ban isn’t usually possible, Queensland body corporates can implement by-laws that impose reasonable restrictions to manage short-term letting. These may include:
- Guest Limits: Restricting the number of guests allowed at a time.
- Code of Conduct: Implementing a code of conduct for short-term tenants regarding noise, waste disposal, and common area usage.
- Security Measures: Requiring owners to implement security measures, such as key safes or security cameras.
- Insurance Requirements: Mandating minimum insurance coverage for owners engaging in short-term letting.
- Registration Requirements: Requiring owners to register their short-term letting activities with the body corporate.
3. Dispute Resolution:
Disputes related to short-term letting can arise within Queensland body corporates. In such cases, it’s important to:
- Communicate clearly: Open communication between owners and the body corporate is crucial to resolving issues.
- Follow procedures: Adhere to the dispute resolution procedures outlined in the BCCMA and the body corporate’s rules.
- Seek mediation: Consider engaging a mediator to help facilitate a resolution.
- Commissioner’s Office: If necessary, lodge a dispute application with the Commissioner’s Office for a binding decision.
4. Staying Informed:
Body corporate legislation and best practices are constantly evolving. It’s important for both owners and body corporates to stay informed about the latest developments in short-term letting regulations.
Key Takeaways
- Queensland has specific rules: Short-term letting regulations in Queensland differ from other states.
- By-laws can regulate, not ban: Most Queensland body corporates cannot completely ban short-term letting.
- Understand your by-laws: Know what restrictions are in place in your building.
- Communication is key: Open dialogue between owners and the body corporate is crucial for resolving short-term letting issues.
- Seek expert advice: If in doubt about your rights or obligations, consult a strata lawyer.
Finding the Right Balance
Ultimately, finding the right balance between the rights of individual owners to rent out their properties and the interests of the wider community is an ongoing challenge. It requires open communication, informed decision-making, and a willingness to compromise.
Contact us today to help you find your most trusted body corporate management.
If you would like further advice on body corporate management matters, Frank can be contacted by email at frank.higginson@hyneslegal.com.au or by telephone +61 7 3193 0588.
