Bills

Short Term Holiday Rental Accommodation Bill

Introduction and First Reading

The Hon. Z.L. BETTISON (Ramsay) (10:32): Obtained leave and introduced a bill for an act to provide for oversight of the short term holiday rental property market, to provide protections for neighbouring residents, and for other purposes. Read a first time.

Second Reading

The Hon. Z.L. BETTISON (Ramsay) (10:33): I move:

That this bill be now read a second time.

I am very pleased to introduce the Short Term Holiday Rental Accommodation Bill 2021. This bill provides for oversight of the short-term holiday rental property market, to provide protections for neighbouring residents and provide booking platforms with regulatory certainty. It will achieve this by requiring all people who list a residential property on a short-term rental basis to (a) register their property with the South Australian government, (b) adhere to an industry code of conduct, (c) create new penalties for any breaches of the code and/or failing to register, and (d) create a compensation pathway for a person who suffers a loss of amenity caused by the conduct of a short-term holiday rental property occupant.

South Australia is currently one of only two states to have no formal oversight of the short-term holiday rental industry. Victoria, New South Wales, Western Australia and Tasmania all have regulations in place. New York, Amsterdam, Berlin, Paris, London and San Francisco are notable municipal governments that have also articulated policies regarding short-stay rental accommodation. This bill provides certainty for the industry and a consistent approach both nationally and internationally.

Why is it needed? The growth of the short-term residential holiday rental market has brought with it increasing reports of some listed properties being used as party houses to host out of control parties that disrupt entire neighbourhoods. Common issues reported include abusive and drunken behaviour on the streets, parties with more than a hundred people attending on a regular basis, noise and littering issues, and allegations of illegal activities and substance abuse.

Residents who live next to party houses have had repeated handballing of the issue between South Australia Police and local government. It has forced some of them to sell their houses at a significant loss or stop having relatives visit them. Whilst COVID-19 and the accompanying travel restrictions did see a temporary decline in party house reports, I have been assured that over the past six months the problems are again on the rise.

This bill is designed not to harm the short-term holiday rental industry; however, it does provide a commonsense approach to dealing with problem party houses. We need to protect the people who do the right thing but also penalise those who have no regard for the community around them. If a house listed on holiday booking platforms, such as Airbnb, Stayz or any other platform, is causing severe disruption to a neighbourhood, there needs to be a way that this can be addressed in law.

At this point in time, there is no sufficient legal remedy for affected communities. People who own a party house need to be held accountable to ensure that they are not disrupting the community around them. This is not an anti-party bill. It is legislation that is designed to provide oversight, accountability and a pathway to a legal dispute mechanism for a neighbour experiencing a loss of amenity due to the conduct of a rental property occupant.

What do we define as short-term holiday rental accommodation? The bill defines short-term holiday rental accommodation as rental accommodation at a residential premise for a period not exceeding a consecutive 30 days or one month. What do we mean by a loss of amenity? An amenity refers to something that is considered a benefit to a property, thereby increasing its value. This can refer to tangible amenities, such as access to swimming pools, playgrounds, footpaths, bikeways or local parks.

In some instances, it may include communal or shared infrastructure, such as garage space or internet access. Intangible amenities include such things as well-integrated public transport systems, pleasant views, nearby activities or a low crime rate. In some instances, it may include access to clean air and water or other environmental factors that may reduce adverse health effects for residents or increase their economic welfare.

The bill provides for the South Australian Civil and Administrative Tribunal (SACAT) to provide compensation of up to $2,000 to neighbours who have experienced loss of amenity due to a short-term rental property. The bill also provides for SACAT to administer penalties of up to $1,250 for occupants who breach the code of conduct, and up to $5,000 for property owners who fail to register or update registration details.

But what will be the code of conduct? The code of conduct is in response to concerns regarding the responsibilities of operators and residents of short-term holiday rental accommodation. It establishes guidelines of acceptable behaviour for the host and guests. The code will be drafted by the Commissioner for Consumer and Business Services in consultation with the Local Government Association. This consultation is explicit in the bill. The commissioner is tasked with publishing the code of conduct both in the Gazette and on a website and reviewing the code every three years.

Many people have asked me how this will affect the operators of residential holiday properties. The bill proposes changes that will significantly increase transparency of holiday rental accommodation to understand its representation within the tourism industry. By comparison, the hotel accommodation sector is heavily regulated and generally have staff and security to deal with issues as they arise. It is only reasonable that short-term rental accommodation providers, who are essentially directly competing in this space, should be registered and be held accountable to a code of conduct.

The bill has been designed to not be onerous for people renting out their residential properties as short-term accommodation. The proposed registration system will be basic and easy to register. The new penalties created in this bill are designed to ensure that owners of short-term residential properties remain accountable in their responsibility not to disrupt entire neighbourhoods. The bill clarifies that a short-term holiday rental accommodation provider is not liable for paying compensation if the South Australian Civil and Administrative Tribunal is satisfied that the provider took all reasonable steps to prevent an occupant from engaging in the conduct that led to the making of the order. This provides an important protection.

I would like to take a moment to reflect on and outline some of the feedback that as shadow minister for tourism I have received from residents across our state who have had to endure living near one of these party houses. Often when I have raised this before they have said that it just happens in a few locations. Let me share with you that this has happened all over South Australia. Just last week someone reached out to my office to say that they live along the River Murray and that every weekend they are experiencing 50-plus people coming into different locations, drinking excessively and fighting excessively, and this is happening more and more frequently.

We all know about the notorious party house in Moana when this first started happening, where at its worst a car caught on fire and nudity and high use of alcohol and concerns about drug use have been raised. There are people living in the inner suburbs of the western suburbs who, just next door, have a party house that goes all night, with banging on doors until all hours. One of the more unique ones was in the eastern suburbs—a very nice street, a cul-de-sac in fact—where they had outrageous party houses and had to call the police almost every weekend. This is not just the CBD or the seaside locations. I have had conversations with people all over South Australia.

Case study 1 lived near a party house in the city for several years and experienced pop-up brothels, drug arrests, break-ins, property damage, vandalism and threats to his family and children. Case study 2 told me that there is clearly a need for some regulation of this industry to protect not only the renters but also the local owners, who have to put up with the disruption on a regular basis. He noted that both police and emergency services have expressed ongoing frustration with the amount of time they have to spend responding to complaints, with incidents including drunken fighting and trees being set on fire.

Case study 3 experienced the trauma of a drunken argument that resulted in a man suffering life-threatening injuries and having to be airlifted to hospital. With many of these incidents occurring in regional South Australia, SAPOL can be up to 90 minutes away. Case study 4 describes the frustration of having no avenues, other than SAPOL, to escalate complaints. She told me, 'We have had enough. It has been an ongoing problem for some years. We have tried everything to handle it in a civil manner with a real estate agent and council. We tried consumer affairs and they just tell us to ring SAPOL. It does not resolve the problem, as we are dealing with strangers every time they are using the holiday stays.'

Case study 5 lives on an island. He told me what a real problem full-time residents have with the party houses, especially when a large number of people rent a house for a couple of days. He said to me that residents are actually selling their homes because of the ongoing problems. The new purchasers of those homes then rent them, so the problem is growing. This is just some of the feedback I have received directly in regard to this issue.

I want to emphasise that the majority of short-term accommodation rental properties are located in our regions. There are also high-profile party houses right in the middle of our suburbs. The assumption that this is an inner-city problem is incorrect. At its most extreme, I have heard cases where people cannot have their children visit due to the explicit sexual behaviour that occurs within plain sight of their home. Other people have had experiences of having driveways blocked as streets are filled with cars, as well as more common antisocial behaviours, including swearing, drunken behaviour and loud music.

The bill has been shared widely for consultation and has received the following feedback from key stakeholder groups. Australian Hotels Association chief executive, Ian Horne, has endorsed the registration, saying:

Registration means being able to identify and, as necessary, hold accountable facility operators for the behaviour of their paying guests.

Mr Horne said that without a code of conduct there is no consumer protection for a bad experience. Stayz corporate affairs director, Eacham Curry, said yesterday:

On the whole the central elements proposed (a Code and Register) have been demonstrated, globally, to provide a sound underpinning regulation for the STR sector. Stayz advocates for exactly these types of regulatory tools.

It is clearly unfair for South Australians to be a prisoner in their own home. I have been having these conversations for more than two years. Many have expressed to me how they lose sleep and face a decline in their property value. None of these things are fair, and this bill will make a tremendous difference, providing a place where these consumer complaints can be dealt with appropriately, with necessary penalties applied. This bill simply sets some ground rules for a growing industry. I commend the bill to the house and look forward to further debate.

Debate adjourned on motion of Mr Pederick.