The City of Hobart is making big moves to introduce a strict regulatory framework to short-stay rentals, especially those listed on commercial platforms such as Airbnb. In Hobart, there are more than 1,500 registered properties. It provides the highest per capita density of short-stay accommodations of any Australian capital. Local leaders are responding to worries about housing unaffordability and illegal listings. In addition to the new regulations, they are piloting a new software tool created to help cities like theirs find illegal short-term rentals.
Karen Abey, a leading force behind this initiative, underscores the goal of equitable compliance for all property owners. She argues that it’s only fair that all players are held to the same environmental standards. This is especially important when it comes to taxing higher rates on short-stay rentals. In 2023, the city enacted a policy to double rates on short-stay properties. This decision comes in the context of the Fed’s longstanding promise to continue applying pressure against a tight housing market.
The Challenge of Unauthorized Listings
The Tenants Union of Tasmania, spearheaded by activist Alex Bomford, has made headlines recently for its opposition to the growing short-stay accommodation sector. Bomford explains how this trend harms residents by increasing rental costs and making them less available. He argues that the proliferation of short-term rentals “hollows out the city” and makes it more difficult to find affordable housing.
The City of Hobart’s new program, launched last month, is designed to do just that. The trial software will help city staff more easily find illegal short-term rentals such as those operated outside the regulations set by the city on Airbnb. Abey notes that the previous process of quarterly reports from the Tasmanian government were reviewed manually which was not enough. It further permitted bad actors to remain under the radar for extended periods.
“It’s really just allowing us to be much more nimble and keep a closer eye on what’s going on out there,” – Karen Abey.
The trial as a whole has already produced significant results, with four separate listings found to be potentially unauthorized. Abey recognizes that many examples of non-compliance may be the result of good faith error. Yet, she points out, the rules around planning need to be clearer.
Striking a Balance
Michael Crosby, another stakeholder in the conversation surrounding short-stay rentals, emphasizes the importance of finding a balance between regulatory enforcement and maintaining the economic benefits derived from such accommodations. He understands that hundreds of thousands of Australians count on income from short-term rentals. Such financial support is extremely important, not least in the context of a long-term cost-of-living crisis.
“Housing is an economic lifeline for many during this cost-of-living crisis, with 45 percent of Aussie hosts saying the money they earn from Airbnb helps them stay in their homes,” – Michael Crosby.
Crosby is clear that we need to work at making housing more affordable. Still, we shouldn’t ignore the positive economic impacts that short-stay rentals can provide. He champions policies that balance the needs of city residents with the needs of this diverse economy.
Future Considerations
During the trial period, the City of Hobart will evaluate the software’s effectiveness. They will additionally measure its cost-benefit impact in assessing whether to move forward to permanently implement the change. Eleven months into the current administration, the city is trying to be more proactive. It understands the multifaceted concerns regarding short-stay rentals and their impact on local communities.
Regardless of how they feel about regulating STAs, stakeholders with an interest in this issue recognize that it may be time for tougher laws. Keeping it illegal Bomford is in favor of tracking illegal rentals, but argues that current regulations should be strengthened. The Tenants Union of Tasmania has called for a complete ban on full properties being listed as short-stay accommodations, particularly in high-demand areas.
