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

Starting a Short-Term Rental Business in Wollongong

If you're considering starting your own short-term rental business in Wollongong using platforms like Airbnb or Vrbo, it's important to understand the regulations and requirements.

As of November 1, 2021, the NSW Government introduced a statewide regulatory framework for STRs. Key requirements include:

1. Registering your STR property on the NSW Government's STRA Register. There is a registration fee of $65 for the first 12 months and an annual renewal fee of $25.
2. Ensuring your property meets fire safety standards with adequate smoke alarms, evacuation diagrams, fire extinguishers, and fire blankets as required.
3. Complying with the Code of Conduct for the Short-term Rental Accommodation Industry. This sets out minimum standards and obligations for hosts, guests, and booking platforms.

In the Wollongong local government area, hosted STRs where the host is present can operate year-round without limits. However, non-hosted STRs are restricted to a maximum of 180 days per year, as Wollongong is within the Greater Sydney region.

It's also important to check if your property is in a strata building, as some have by-laws prohibiting STRs where it is not the host's principal place of residence. Over 300 properties were available for STRs in Wollongong LGA as of 2017.

Short-Term Rental Licensing Requirement in Wollongong

As part of the NSW Government's statewide regulatory framework for short-term rental accommodation (STRA), most hosts in Wollongong are required to register their property on the STRA Register before advertising or offering it for short-term rental.

Registration involves a one-off fee of $65 for the first 12 months and an annual renewal fee of $25 thereafter. Upon successful registration, hosts receive a unique STRA property ID number, which must be included in any online listing of the property.

There are some exceptions to the registration requirement. Traditional accommodation providers like hotels, motels, bed and breakfasts, and serviced apartments that are already approved for tourist and visitor accommodation do not need to register for STRA. Caravans, tents, and moveable dwellings are also exempt.

Wollongong City Council may conduct periodic audits to ensure properties being used for STRA are properly registered. Penalties may apply for non-compliance, including significant fines.

In addition to registration, STRA hosts in Wollongong must also:

• Ensure their property meets the required fire safety standards, with adequate smoke alarms, evacuation diagrams, fire extinguishers, and fire blankets
• Comply with the Code of Conduct, which sets out minimum behavior standards for hosts, guests, and booking platforms
• Observe the 180-day annual cap on non-hosted STRA bookings, as Wollongong is within the Greater Sydney region where this limit applies

While the STRA registration process is managed by the NSW Government through the Planning Portal, Wollongong Council plays an important role in monitoring compliance, responding to complaints, and considering any additional local planning controls that may be needed to manage STRA impacts.

Some Wollongong residents have raised concerns about the growth of short-term rentals and so-called "party houses" in residential neighborhoods. Council has indicated it may look at further regulation through its Development Control Plan if issues persist. However, any changes would need to align with the statewide STRA framework.

Overall, the licensing and registration requirement aims to strike a balance between supporting Wollongong's tourism economy and protecting local community amenities. By holding STRA operators accountable to basic standards, it provides greater oversight of the industry while still allowing responsible short-term letting to continue.

Required Documents for Wollongong Short-Term Rentals

To register your short-term rental property in Wollongong on the NSW Government's STRA Register, you will need to provide certain documents and information. The specific requirements may vary depending on your property type and circumstances, but generally include:

1. Proof of identity: You will need to verify your identity as the property owner or host. Acceptable forms of ID include a current driver's license, passport, or NSW photo card.
2. Property details: You must provide the address of the STRA property, including the lot and DP number if applicable. You will also need to specify the type of dwelling (house, apartment, etc.).
3. Contact information: Provide your full name, phone number, email, and postal address. If someone else will be managing the property on your behalf, their contact details are also required.
4. Number of bedrooms: Specify how many bedrooms in the property will be used for STRA. This helps determine the maximum number of guests allowed.
5. Consent of owners corporation: If the property is part of a strata scheme, you may need to provide evidence that the owners corporation has consented to the property being used for STRA. This could be in the form of a letter or meeting minutes.
6. Payment: Have your credit card ready to pay the $65 registration fee for the first 12 months. The annual renewal fee thereafter is $25.
7. Declaration: You will need to declare that the information provided is true and correct, the property is safe and habitable, and that you will comply with the STRA Code of Conduct and other applicable regulations.

Once you have these documents ready, you can complete the online registration process on the NSW Planning Portal. After submitting your application and payment, you will receive an STRA property ID number (STRA-PID-XXXX). This unique identifier must be included in all online listings and advertisements for your property.

It's important to note that in addition to registration, your STRA property must meet fire safety standards and have the correct smoke alarms, evacuation diagrams, and other required equipment installed. You may need to provide evidence of compliance as part of the registration process or have it ready for a compliance check by Council.

Failing to register your STRA property or comply with the Code of Conduct and fire safety requirements can result in significant penalties. But by following the rules and keeping your documentation in order, you can operate your short-term rental legally and help maintain the amenities of Wollongong's neighborhoods.

Wollongong Short-Term Rental Taxes

In addition to registration requirements and potential caps on rental days, short-term rental hosts in Wollongong also need to be aware of their tax obligations. Income earned from renting out your property on platforms like Airbnb is considered assessable income by the Australian Taxation Office (ATO) and must be declared on your annual tax return.

The tax treatment of short-term rental income is generally the same as for a traditional rental property. You will need to pay income tax on the rental income you receive, but you can also claim tax deductions for expenses related to the rental activity.

Some common expenses you may be able to deduct include:

1. Airbnb service fees and commissions
2. Property management fees
3. Cleaning and maintenance costs
4. Utilities like electricity, gas, water and internet
5. Council rates and land taxes
6. Depreciation of furniture and appliances used in the rental

If you are only renting out a portion of your home, for example a spare bedroom, you will need to apportion these expenses based on the floor area used for rental purposes and the time it was available for rent.

It's important to keep detailed records of all your rental income and expenses to make tax time easier and ensure you can justify any deductions claimed if audited by the ATO. The ATO now receives data from short-term rental platforms like Airbnb, so it's crucial to report all your income to avoid penalties.

One area that often catches hosts by surprise is capital gains tax (CGT). If you sell a property that you have used for short-term rentals, even just a room, you may not be entitled to the full main residence CGT exemption. You will likely have to pay CGT on a portion of any capital gain based on the floor area rented out and the period used for rental income.

The goods and services tax (GST) generally doesn't apply to residential rents, including short-term accommodation. So, Airbnb hosts are not required to register for or charge GST, even if your rental income exceeds the $75,000 GST threshold. However, this also means you cannot claim GST credits for any related expenses.

With the growth of the short-term rental industry in Wollongong and across Australia, it's possible that new or increased taxes may be introduced in the future, as has happened in some regions overseas. The NSW government has indicated that all aspects of short-term rentals are being examined in its current review.

For now, Wollongong hosts should ensure they understand their income tax obligations, keep good records, and consider engaging a tax professional for advice on their specific circumstances. By staying on top of your taxes and complying with registration and code of conduct requirements, you can operate your short-term rental confidently and avoid unwanted attention from the ATO or local council.

Australia Wide Short-Term Rental Rules

While each state and territory in Australia has its own specific regulations around short-term rentals, there are some common themes and emerging trends at a national level.

One key development has been the introduction of mandatory registration schemes for short-term rental properties. Tasmania was one of the first states to implement this in 2019, requiring all properties listed on booking platforms to be registered with the government. Since then, several other jurisdictions have followed suit or announced plans to do so, including New South Wales, Western Australia, and South Australia.

The primary goals of these registration systems are to improve transparency, ensure compliance with fire safety and other standards, and assist with monitoring and enforcement of rules around short-term letting. Registration also provides valuable data to governments about the scale and distribution of short-term rental activity.

Another common regulatory approach has been the use of nightcaps to limit the number of days per year that a property can be let out on a short-term basis, particularly in areas with acute housing pressures. In New South Wales, there is a 180-day annual limit for unhosted properties in Greater Sydney and some regional areas. The Byron Shire Council in NSW has sought to go further, proposing a 90-day cap.

Caps are intended to strike a balance between supporting tourism and the economic benefits of short-term rentals while ensuring that properties are not entirely removed from the long-term rental market. However, there has been resistance from some property owners and the short-term rental industry, who argue the rules are too restrictive.

Strata laws have also been an important battleground, with different states taking contrasting approaches. In NSW, owner corporations can adopt by-laws prohibiting short-term letting in strata schemes where the property is not the host's principal place of residence. Victoria has gone the other way, with a 2016 Supreme Court decision invalidating any strata by-law that sought to restrict short-stay letting.

Looking ahead, it's likely that mandatory registration will become the norm across Australia as governments seek to get a better handle on the burgeoning short-term rental sector. Pressure is also mounting for a more coordinated and consistent national approach rather than the current patchwork of state and local government rules.

The short-term rental industry itself has recognized the need for sensible regulation. Airbnb has called for simple, state-wide registration systems along with industry-wide codes of conduct to help address community concerns while providing certainty for hosts and guests.

Ultimately, the goal of regulation should be to harness the economic opportunities presented by the sharing economy while safeguarding community amenities and access to housing. With the right balance, short-term rentals can be a win-win for tourism and residents alike. But it will require ongoing collaboration between industry, governments and communities to get the settings right.

As the short-term rental juggernaut continues to grow and evolve, a flexible and responsive regulatory framework will be key to ensuring its long-term sustainability. By learning from the experiences of different jurisdictions and engaging in constructive dialogue, Australia can develop a best-practice approach that delivers positive outcomes for all.

Does Wollongong Strictly Enforce STR Rules?

Based on discussions among short-term rental hosts on forums like Bigger Pockets and Reddit, it appears that Wollongong is relatively Airbnb-friendly compared to some other Australian cities, but hosts still need to be mindful of the rules and potential for enforcement.

One Bigger Pockets user shared their experience operating STRs in Wollongong, noting that while the city has implemented some restrictions like the 180-day annual cap on non-hosted rentals, the rules are not always strictly policed. They advised that having good relationships with neighbors and proactively managing guest behavior goes a long way in avoiding complaints that could trigger council action.

However, other hosts cautioned against assuming rules won't be enforced. A Reddit commenter familiar with the Wollongong market said that the council has shown increasing interest in cracking down on non-compliant STRs in recent years as the impacts on residential areas have become more apparent. They noted a rise in complaints about "party houses" and recommended hosts be diligent about registering their property and adhering to the Code of Conduct.

The general consensus seems to be that while many STRs do operate in Wollongong, often without major issues, hosts cannot simply ignore the regulations and expect no consequences. Taking a "fly under the radar" approach is increasingly risky as councils respond to community concerns.

As one Bigger Pockets member put it, "The days of STR free-for-all are numbered. Hosts who want to stay in the game long-term need to work with their local authorities, not against them. Get registered, follow the rules, and be a good neighbor. That's the path to Airbnb success in Wollongong and beyond."

So in summary, Wollongong appears to be a workable market for responsible STR hosts, but not a regulation-free zone. The council is paying more attention to short-term rentals and seems prepared to use the enforcement tools at its disposal as needed. Hosts who proactively comply and manage their properties well can still thrive, but the "anything goes" approach is no longer viable.

How to Start a Short-Term Rental Business in Wollongong

If you're interested in starting a short-term rental business in Wollongong, here are the key steps to follow:

1. Research the local STR regulations and register your property on the NSW Government's STRA Register. Pay the required registration fee ($65 for the first year, then $25 annually). Ensure your property meets all fire safety standards.
2. Determine what type of STR you want to offer - hosted (where you live on the premises during the guest's stay) or non-hosted. Keep in mind that non-hosted STRs in Wollongong are capped at 180 days per year.
3. Prepare your property for guests. Make any necessary repairs or upgrades, furnish and decorate the space, and stock it with essential amenities. Consider hiring a professional photographer to take high-quality listing photos.
4. Set your pricing based on research of comparable listings in the area. Factor in your costs, the 180-day cap for non-hosted rentals, and seasonal demand fluctuations. Consider using dynamic pricing tools to optimize your rates.
5. Create your listing on platforms like Airbnb and Vrbo. Write an engaging description, upload your best photos, and clearly outline your house rules and expectations for guests. Don't forget to include your STRA property ID number on the listing.
6. Establish your guest communication and check-in processes. Use the Airbnb app, email, or third-party tools to automatically respond to inquiries and send key details like directions and entry instructions. Consider offering self check-in for guest convenience.
7. Arrange for cleaning and turnover between guests. You can do this yourself or hire a reputable cleaning service. Ensure the property is spotless and fully restocked with essentials before each new guest arrives.
8. Notify your neighbors that you'll be hosting STR guests and provide them with your contact information in case any issues arise. If your property is in a strata scheme, you must also notify the owners corporation.
9. Understand your tax obligations as an STR host. Any income you earn is taxable and must be declared on your annual return. Keep detailed records of all earnings and expenses to make tax time easier.
10. Continuously monitor your reviews and guest feedback. Promptly address any problems or complaints. Regularly update and improve your listing to stay competitive in the Wollongong STR market.

By following these steps and staying compliant with all applicable regulations, you can launch and grow a successful short-term rental business in Wollongong. It takes some upfront work to get set up properly, but the potential rewards can be well worth the effort for savvy hosts.

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

If you have questions about short-term rental regulations and zoning in Wollongong, there are several key contacts and resources available:

Wollongong City Council Customer Service:

The first point of contact for general inquiries is the Council's Customer Service team. They can provide information and direct you to the appropriate department for more specific questions.

Phone: (02) 4227 7111
Email: council@wollongong.nsw.gov.au
Address: 41 Burelli Street, Wollongong NSW 2500

Wollongong City Council Planning Team:

For detailed questions about planning controls, zoning, and development applications related to short-term rentals, contact the Council's Planning team.

Phone: (02) 4227 7111 (ask for the Duty Planner)
Email: daptechs@wollongong.nsw.gov.au

NSW Department of Planning, Industry and Environment:

The state government department responsible for the overall STRA policy framework. Their website has useful information and resources for hosts and councils.

Phone: (02) 9274 6312
Email: stra@planning.nsw.gov.au

NSW Fair Trading:

For questions about the Code of Conduct and host/guest rights and responsibilities, contact NSW Fair Trading.

Phone: 13 32 20
Website: www.fairtrading.nsw.gov.au

Illawarra and South Coast Tenants Advice and Advocacy Service:

A free service for tenants in the region that can provide advice on rental issues, including for long-term tenants impacted by short-term letting in their building.

Phone: (02) 4274 3475 or 1800 807 225
Website: www.tenants.org.au/taas/isctaas

In addition to these contacts, the Council website (www.wollongong.nsw.gov.au) has a dedicated Planning and Development section with information on the local planning controls and application processes.

The NSW Government's STRA Register (www.planningportal.nsw.gov.au/STRA-register) is also a key resource for hosts to register their property and access information on the Code of Conduct and fire safety standards.

By reaching out to these contacts and utilizing the available online resources, short-term rental hosts and concerned residents can get the information and support they need to navigate the evolving regulatory landscape in Wollongong. Clear communication between all stakeholders will be essential to striking the right balance between supporting tourism and protecting neighborhood amenity.

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

To get a sense of how short-term rental hosts in Wollongong feel about the local regulations, I browsed through some relevant threads on Reddit and Bigger Pockets forums. Here are a few key takeaways:

On the r/AirBnB subreddit, one host expressed frustration with the 180-day annual cap on non-hosted rentals in the Greater Sydney region, which includes Wollongong. They felt this limit was too restrictive and made it difficult to operate a viable STR business. However, another commenter pointed out that the cap aimed to strike a balance between supporting tourism and ensuring an adequate supply of long-term rentals for residents.

In a Bigger Pockets thread about investing in short-term rentals, an experienced host advised that succeeding with STRs in Wollongong requires a thorough understanding of the applicable rules and a commitment to responsible hosting. They noted that while Wollongong is generally Airbnb-friendly compared to some other cities, the council is paying more attention to the impacts of holiday lets on residential areas. Hosts who proactively comply with the Code of Conduct and manage their properties well can still do well, but the "anything goes" approach is no longer viable.

Another Bigger Pockets user shared their experience operating STRs in Wollongong. They mentioned that having good relationships with neighbors and promptly addressing any concerns goes a long way in avoiding complaints that could trigger council enforcement action. This host felt that many of the rules, like registering with the government and meeting fire safety standards, were reasonable and helped legitimize STRs as a business.

On the flip side, a Reddit thread in r/AusFinance discussed the need for tighter regulation of Airbnb to combat housing affordability issues. Several commenters argued that STRs in residential areas should be subject to the same zoning, safety, and licensing requirements as traditional accommodation providers like hotels and B&Bs. One person suggested that hosts should have to live within a certain radius of their STR property so they are more accountable to the local community.

Overall, the sentiment among Wollongong hosts seems to be that the current regulations, while not perfect, are workable for those committed to professional and responsible hosting. Many recognize the need for some oversight to manage community impacts and maintain the social license for STRs to operate. However, there are concerns that further restrictions, like lowering the 180-day cap, could make it unviable for "mum and dad" investors and concentrate the market in the hands of large commercial operators.

As the STR industry continues to evolve, ongoing dialogue between hosts, residents, and policymakers will be key to refining the rules to maximize the benefits for all stakeholders. Wollongong, with its desirable coastal location and growing tourism economy, looks set to remain an important test case in the broader debate over short-term rental regulation in Australia.

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.