Adelaide Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Adelaide

If you're considering starting a short-term rental business in Adelaide using platforms like Airbnb or VRBO, it's important to understand the local rules and regulations. While no specific laws currently regulate short-term rentals in South Australia, this may be changing soon.

In June 2021, a bill was introduced in the South Australian parliament that would provide oversight of the short-term rental market and protections for neighboring residents. The Short Term Holiday Rental Accommodation Bill 2021 would require hosts to register their properties, adhere to a code of conduct, and face potential fines for violations.

The bill defines a short-term rental as a stay of less than 30 consecutive days in a residential premises. It would establish a mandatory code of conduct for guests to follow, enforceable by the Commissioner for Consumer and Business Affairs. Hosts would need to register their property in order to legally operate.

Adelaide City Council is also considering implementing tighter regulations on short-term rentals. In December 2023, the council floated several policy options, including:

• Charging commercial council rates to short-term rental properties instead of residential rates
• Introducing a permit system that would require hosts to register and potentially pay a fee
• Capping the number of nights per year a property can be short-term let
• Requiring development approvals for short-term rentals

These potential changes are in response to concerns about the impact of short-term rentals on housing affordability and availability in Adelaide. As of November 2023, the city's rental vacancy rate was just 0.5%.

Before investing in an Adelaide short-term rental property, it's critical to research any existing regulations as well as stay up-to-date on the status of proposed rule changes. Contact the Adelaide City Council and South Australian Consumer and Business Services for the latest information.

Also, check if there are any strata or body corporate rules that would prohibit or restrict short-term rentals in the building or complex. Corporations can sometimes vote to ban stays of less than 2 months.

With the rapid growth of the short-term rental industry, many cities and states in Australia are working to implement appropriate regulations. While Adelaide's rules are still evolving, hosts who do their due diligence and comply with all requirements can operate a successful and legal short-term rental business in this popular destination. The key is staying informed and adapting to any regulatory changes.

Short-Term Rental Licensing Requirement in Adelaide

In Adelaide, South Australia, there is currently no state-wide licensing or registration system in place specifically for short-term rental accommodations like Airbnb and Stayz. However, some local councils have started implementing their own regulations and licensing requirements.

The Adelaide City Council has proposed introducing a paid permit scheme for short-term rental operators within the CBD and North Adelaide areas. Under this potential scheme, Airbnb hosts would need to obtain a permit and pay an annual fee to legally operate their short-term rental listing. The council is considering this move to increase regulation over short-term rentals, which they view as impacting long-term rental availability and housing affordability in the city center.

Other councils, like the City of Norwood Payneham & St Peters, have existing by-laws that restrict short-term rentals under 30 days in certain residential zones unless the appropriate development approval has been granted. Hosts operating without approval risk fines for non-compliance.

While the state government has not yet enacted comprehensive state-wide laws, it is reviewing the need for potential regulations in the short-term rental sector. Short-term rental hosts and property investors are advised to check the specific rules and approval requirements with their local council before listing a property on platforms like Airbnb or Stayz. Licensing and permit rules can vary between different council areas.

Required Documents for Adelaide Short-Term Rentals

Currently, there is no state-wide registration or licensing system specifically for short-term rental accommodations like Airbnb in South Australia. However, some local councils have started implementing their own regulations that hosts need to be aware of.

The Adelaide City Council has proposed a paid permit scheme that would require short-term rental operators within the CBD and North Adelaide areas to obtain an annual permit. While the details are still being finalized, hosts may need to provide the following documents when applying for this permit:

1. Proof of property ownership or authorization from the owner to operate a short-term rental
2. Details on the number of bedrooms and maximum occupancy
3. Confirmation of adequate insurance coverage
4. An emergency contact person living locally
5. Floor plans showing fire safety provisions
6. Evidence of compliance with noise regulations
7. Payment of the permit application fee

Other councils like the City of Norwood Payneham & St Peters require development approval for short-term rentals under 30 days in certain residential zones. The application would likely require:

1. A description of the premises and proposed activity
2. A site plan showing parking and outdoor areas
3. A copy of the certificate of title
4. Confirmation that body corporate/strata approval has been obtained
5. Payment of development application fees

While not currently mandated across Adelaide, it's a good practice for hosts to have the following documents prepared as well:

1. A guest screening procedure and house rules
2. An emergency plan and evacuation routes
3. Checklists for cleaning and property inspections
4. Copies of compliance certificates for pools, smoke alarms, etc.

Short-term rental hosts are advised to check the specific rules and approval requirements with their local council, as regulations can vary across different areas of Adelaide. Maintaining proper documentation helps ensure compliance and a seamless hosting experience.

Adelaide Short-Term Rental Taxes

In Adelaide and across South Australia, there are several important tax considerations for short-term rental hosts:

1. Income Tax: Any income you earn from short-term rental activities like Airbnb is considered assessable income by the Australian Taxation Office (ATO). This rental income must be declared on your annual income tax return. You can claim deductions for associated expenses like mortgage interest, property management fees, cleaning costs, etc.
2. Goods and Services Tax (GST): Short-term rental accommodation is generally treated as residential rental income, which is input-taxed. This means you do not need to charge GST on your rental fees, nor can you claim GST credits on related expenses.

However, if your short-term rental property meets certain criteria to be classified as "commercial residential premises," you may need to register for GST and charge it on your accommodation fees. Commercial residential premises generally refer to properties capable of multi-tenant occupancy with central management, like hotels or serviced apartments.

1. Capital Gains Tax (CGT): When you sell your short-term rental property, you may need to pay CGT on any capital gain realized. However, if the property was your main residence for a period of time, you may be entitled to a full or partial CGT main residence exemption.
2. Land Tax: Short-term rental properties are subject to land tax in South Australia, similar to other investment properties. Land tax rates are based on the aggregate taxable value of all your land holdings in the state.
3. Local Council Rates: Currently, most short-term rental properties in Adelaide pay residential council rates. However, the Adelaide City Council has proposed changing this to charge short-term rental operators commercial rates, which are around 20% higher than residential rates. This proposal aims to create a level playing field with traditional accommodation providers.

Keeping meticulous records of all income and expenses related to your short-term rental activities is advisable. Consulting an experienced tax professional can also ensure you correctly meet your tax obligations while maximizing the deductions you're entitled to claim.

Australia Wide Short-Term Rental Rules

While short-term rental regulations are primarily governed at the state and local council level in Australia, there are some overarching nationwide rules that hosts should be aware of.

1. Income Tax: Any income earned from short-term rental activities like Airbnb or Stayz is considered assessable income by the Australian Taxation Office (ATO). This rental income must be declared on your annual income tax return, and you can claim tax deductions for associated expenses.
2. Goods and Services Tax (GST): Short-term rental accommodation is generally treated as residential rental income, which is input-taxed. This means you do not need to charge GST on your rental fees, nor can you claim GST credits on related expenses. However, if your property meets the criteria to be classified as "commercial residential premises", you may need to register for GST.
3. Capital Gains Tax (CGT): When you sell a short-term rental property, you may need to pay CGT on any capital gain realized. However, if the property was your main residence for a period, you may be entitled to a full or partial CGT exemption.
4. Insurance: While not legally required, it's highly recommended for short-term rental hosts to have adequate insurance coverage. This could include public liability insurance to cover third-party injuries as well as property insurance to protect against damage by guests.
5. Safety Standards: Some states/territories have introduced mandatory safety standards for short-term rental properties. Common requirements include properly installing smoke alarms, evacuation plans/diagrams, and fire extinguishers or blankets.
6. Code of Conduct: A number of states have implemented codes of conduct that set minimum standards for behavior and obligations for hosts, guests, and booking platforms in the short-term rental industry.

In addition to the above nationwide considerations, each state and territory has its own specific rules and regulations around short-term rental accommodation that hosts must follow. These cover aspects like registration/licensing requirements, planning permits, day limits, and more. The rules can even vary between different local council areas within the same state.

Short-term rental hosts are strongly advised to thoroughly research and ensure compliance with all applicable laws and regulations at the federal, state/territory, and local levels before listing their property on platforms like Airbnb or Stayz. Consulting legal professionals can also help clarify obligations.

Does Adelaide Strictly Enforce STR Rules? Is Adelaide Airbnb friendly?

Based on discussions on forums like BiggerPockets and Reddit, it appears that Adelaide is generally considered Airbnb friendly compared to some other Australian cities, though enforcement of short-term rental rules can vary.

From the responses on these platforms, many hosts seem to operate Airbnb listings in Adelaide despite the existing rules and regulations around short-term rentals. The consensus is that enforcement by local councils is relatively lax, and penalties are not strictly imposed.

One BiggerPockets user commented that while Adelaide has some regulations requiring registration and approvals for STRs, "the municipality is too small to carry out enforcement" on a large scale. Another user mentioned that multiple apartment buildings have been converted into Airbnb units despite likely violating zoning rules.

On Reddit, there are similar sentiments that Adelaide's STR rules "are unenforceable and out of control" due to a lack of resources for proper oversight. Some posters claim it is an "open secret free-for-all where real estate investors continue to erode housing supply by exploiting loopholes."

While Adelaide has tried implementing measures like registration requirements and limiting unhosted STR nights, the general opinion from these discussion forums indicates that hosts feel they can freely operate Airbnb listings without facing major repercussions from regulators. The city is viewed as being relatively permissive towards short-term rentals compared to the strict enforcement seen in some other Australian markets.

How to Start a Short-Term Rental Business in Adelaide

1. Research Local Regulations: Check with the Adelaide City Council and your local council area for any regulations, licensing requirements, or permits to legally operate a short-term rental. Some councils require paid registration or development approval.
2. Choose Your Property: Decide if you want to rent out an entire home, apartment, or just spare bedrooms. Consider factors like location, amenities, parking, and whether the property is suited for short-term guests.
3. Prepare the Property: Ensure the property meets all safety standards with proper smoke alarms, fire extinguishers, etc. Outfit it with the necessary furnishings and supplies for a comfortable guest experience.
4. Get Properly Insured: Standard home insurance may not cover short-term rentals. Obtain specialized landlord insurance or a policy that provides liability coverage for rental guests.
5. Register for Taxes: Short-term rental income is taxable, so you'll need to register with the ATO and understand obligations like GST, income tax, and potentially capital gains tax when selling.
6. Create Your Listing: Take high-quality photos and write a compelling listing description highlighting your property's best features and nearby attractions for marketing on platforms like Airbnb, Stayz, etc.
7. Set Competitive Pricing: Research rates for similar properties in your area and use dynamic pricing tools to ensure you're optimizing revenue during peak seasons while remaining competitive.
8. Market Your Rental: In addition to listing sites, promote your property on social media, local tourism websites/blogs, and consider offering specials or discounts to attract bookings.
9. Establish Guest Policies:Have a clear set of house rules, check-in/out procedures, cancellation policies, and screening criteria for accepting guest reservations.
10. Consider Property Management: If you don't want to be a hands-on host, look into hiring a professional short-term rental property management company in Adelaide to handle day-to-day operations.

Starting a short-term rental business requires thorough planning and adherence to regulations, but it can be a lucrative investment opportunity in Adelaide if executed properly.

Who to Contact in Adelaide about Short-Term Rental Regulations and Zoning?

If you are considering operating a short-term rental property like an Airbnb in Adelaide, it's important to understand the relevant regulations and zoning requirements that apply. Here are the key contacts to get information:

1. Adelaide City Council

For properties located within the Adelaide City Council area, you can contact their Customer Service team regarding short-term rental rules and zoning:

Phone: (08) 8203 7203
Email: accmail@adelaidecitycouncil.com

They can advise if you need to apply for any permits or licensing and provide details on specific zones that allow or restrict short-term rental use.

2. Other Local Councils

If your property is outside of the Adelaide CBD, you'll need to check with the relevant local council area it is located in. Most councils have planners or compliance officers who can explain their short-term rental regulations. Contact details are available on each council's website.

Some examples include:

1. City of Norwood Payneham & St Peters: 08 8366 4555
2. City of Unley: 08 8372 5111
3. City of Burnside: 08 8366 4200
4. Consumer and Business Services (CBS)

CBS is the state government agency that oversees residential tenancy laws in South Australia. While they don't regulate short-term rentals directly, they can provide guidance on general landlord obligations:

Phone: 131 882
Email: contact@agd.sa.gov.au

It's recommended that you check both local council regulations and speak to CBS to ensure you understand and comply with all the relevant rules before listing your property for short-term rental in Adelaide.

What Do Airbnb Hosts in Adelaide on Reddit and Bigger Pockets Think about Local Regulations?

On forums like Reddit and Bigger Pockets, there are mixed opinions from Airbnb hosts in Adelaide regarding potential regulations on short-term rentals in the city.

Some hosts feel the Adelaide City Council's proposed permit scheme for CBD/North Adelaide Airbnb listings is an overreach and unnecessary burden. One Redditor commented that "the municipality is too small to carry out proper enforcement" on a large scale, so the rules would be toothless anyway.

Another host on Bigger Pockets claimed they know of entire apartment buildings operating as Airbnb properties, likely violating existing zoning rules. They view it as an "open secret free-for-all where real estate investors continue to erode housing supply by exploiting loopholes."

However, other Adelaide hosts seem more accepting of reasonable regulations. A Redditor mentioned they have no issue registering, paying a fee, following a code of conduct, and complying with safety standards as long as the rules are clearly defined.

There are also hosts who begrudgingly acknowledge some form of regulation may be inevitable as community frustrations grow over the rental crisis and the impact of short-term rentals on housing availability. As one Bigger Pockets user put it, "the municipality has been hands-off so far, but that likely won't last as the housing shortage persists."

Overall, the sentiment across these discussion forums indicates many Adelaide Airbnb hosts currently feel they can freely operate without facing major repercussions. However, opinions are divided on whether the city should tighten rules, with some hosts open to regulation and others firmly opposed to new restrictions on their ability to rent properties short-term.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.