Tax and legal advice

Melburnian short-term letting law proposals: Experts have their say

By Sasha Karen
Law proposals, Melbournian short-term, claiming property owners, occupants

A local government in Melbourne has proposed local laws to tackle supposed party houses. It’s not so cut-and-dry however, with one expert claiming property owners are being unfairly targeted for the actions of their occupants.

MorningtonMornington, VIC Mornington, QLD Mornington, TAS Peninsula Shire Council has announced it intends to introduce new laws in order to curb the impact of party houses, which are said to be contributed through short-term letting services.

The draft law intends to introduce the following 12 standards of management:

  1. A code of conduct must be made available via any online channels used to advertise the property.
  2. A floor plan must be made available to the local council.
  3. A sign must be displayed at the entrance of the property with the permit number supplied by the council.
  4. The owner is responsible for anyone accessing the property.
  5. No visitors are permitted to be at the property between 10pm and 8am.
  6. Vehicles parked on the property’s land cannot go over the available space.
  7. Emergency evacuation plans must be communicated to occupants.
  8. Any additional accommodation is not allowed, such as tents, caravans and campervans.
  9. Outdoor areas of a property, which include swimming pools, outdoor decks and balconies cannot be used between 10pm and 8am.
  10. Owners must notify occupants of how to remove waste, and owners must remove any leftover waste.
  11. Owners must notify occupants of parking arrangements before their arrival.
  12. The property cannot be used as a party house.

As the draft currently stands, the fines for property owners could be up to $3,171.40.

According to short-term letting experts, these measures are, for the most part, a good sign for short-term letters.

Darren Brown, MadeComfy’s recently appointed Melbourne regional manager, said that while there are a “few question marks in play at the moment”, this draft law would bring some much-needed communication between property owners who want to short-term let their properties and regulatory bodies.

“The change to the law … is [going to] only help short-term rental as far as process goes and regulation, so as far as a home owner goes, they’re going to have the peace of mind that everything is structured,” Mr Brown said.

“As far as the proposed changes to the laws, it’s only going to help everybody in the space, and put a bit of regulation around it, bit more process, and we’re supportive of that.”

Joel Cacciotti, founder of Hey Tom, can also see the positivity behind bringing in such a law, but also feels there has been an “unfair” burden placed onto property owners, with a small minority abusing the Airbnb system by having party houses ruining the concept of short-term letting for the majority.

“Most places in Australia should have some guidelines so that people know what they are and aren't allowed to do, but I don't think that the host or the property owner should be the person responsible if there is ... a party or excessively loud guests, because that's just silly,” Mr Cacciotti said.

“Let’s say, for example, you go to a nice restaurant and you have a great meal, but your experience is ruined by the fact that you’re sitting next to a group of loud, drunk people. It’s not the restaurant’s fault that that happened.”

The Mornington Peninsula Shire Council is currently accepting submissions for any alterations to the draft law, which can be submitted via postal mail, email at c&[email protected], or online via the Morning Peninsula Shire Council website.

Mr Cacciotti’s recommendation is for more firm definitions, such as a number of how many guests are allowed in a short-term letted property, and to shift any fines from property owners to occupants.

“If the main problem for these residents in the Mornington Peninsula is party houses and guests just coming down for the weekend and causing trouble, well, in my eyes, they’re the ones that should be penalised and not the home owner or regular guests who aren’t causing a problem,” he said.

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Tune in to the latest episode of Property Showcase, the podcast with the inside track on the products and businesses that will help turbocharge your portfolio, maximise returns and make your overall investment experience seamless and stress-free!

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To hear more about these services, make sure to tune in to this episode of Property Showcase!

 Make sure you never miss an episode by subscribing to us now on iTunes!

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Son is able to write all types of residential and commercial property loans.<\/p>\r\n

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    In this episode of Property Showcase, director of investment services for Open Corp Michael Beresford,\u00a0joins\u00a0editor of Real Estate, Tim Neary to share why he disagrees that the cooling market means that the best times are behind us.<\/p>\r\n

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Will Magee has had ambitions to enter into the Australian property market for quite some time, but it has been more than just finances holding him back.  Having been granted permanent residency just two weeks ago, Will is wasting no time and is now in the process of signing papers and finding his first investment property.

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In this episode of the Smart Property Investment Show, Will joins host Phil Tarrant to share why he is purchasing his first property in partnership with his brother, discuss the complications that can arise from such a strategy, and unpack the ongoing plan for building a joint property portfolio with his brother.

Will will also share how they approached saving for their first property, why he is taking out the mortgage in his name exclusively, and share their savings plan for the year ahead.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

From property in Australia to a ski lodge in Japan
Mortgage Trusts, an alternative first step for property investors
Should a real estate title be in one person’s name only?

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A property investment plan years in the making
object(stdClass)#1201 (52) {
  ["id"]=>
  string(5) "18287"
  ["title"]=>
  string(75) "Regional Victoria showing up Melbourne in price performance, new data finds"
  ["alias"]=>
  string(74) "regional-victoria-showing-up-melbourne-in-price-performance-new-data-finds"
  ["introtext"]=>
  string(139) "

Median house prices in regional Victoria outperformed that of Melbourne in the June quarter, the latest REIV figures reveal. 

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Median house prices in the regions rose 4.0 per cent to $419,500 but in Melbourne they dipped by 0.6 of a percentage point to $840,000.

The result in Melbourne was due to a 0.8 of a percentage point fall in prices achieved at auction; this was despite a lift of 2.3 per cent in private sales.

Inner Melbourne suffered due to auction prices, where median prices fell by 4.9 per cent to $1,459,000 but it was middle Melbourne that was hardest hit, with a 5.4 per cent drop to $974,500.

Outer Melbourne had a good quarter with the median rising by 0.5 of a percentage point to $681,000.

Apartment prices in regional Victoria grew by 3.7 per cent to $304,500 while the metro media was up by 0.5 of a percentage point to $604,000.

REIV President Richard Simpson said that despite fewer sales, many sectors of the market were performing well.

“2017 was a bumper year and while the trendline has flattened, despite the fall in median house prices in the June quarter, median prices are still up this calendar year for both houses and units, in Melbourne and in the regions,” Mr Simpson said. 

In particular there was been strong growth in regional centres which is probably due to the first-home buyers’ concessions said Mr Simpsons.

“The first-home buyers’ concession has been a boon for regional areas. A new entrant to the property market buying a house at the regional median will pay no stamp duty, while a first home buyer of an apartment in Melbourne at the median price would pay stamp duty of nearly $25,000,” he said.

Mr Simpson said that more prospective buyers are looking towards regional Victoria which is also having an effect in Melbourne.

“Melbourne’s outer perimeter continues to grow. Small increases in the June quarter mean that the median prices for both houses and units have risen over 10.5 per cent from a year ago.

Mr Simpson said moving forward that vendors need more realistic expectations as the highs of 2017 are now over.

“Negative chatter about the future of the sector coupled with stronger lending controls by financial institutions has created some uncertainty and vendors need to be realistic with their price expectations,” Mr Simpson said.

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Regional Victoria showing up Melbourne in price performance, new data finds

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