Balanced approach needed for managing short stay accommodation
Informed by sector-wide engagement with councils, LGA has lodged a submission and presented to the state government’s Select Committee on Short Stay Accommodation, which is inquiring into the matter of short stay accommodation in South Australia.
While all councils that informed the submission highlighted a lack of long-term rental availability and decline in rental affordability, the effects of short stay accommodation on housing markets, communities and local economies are not yet fully understood.
Some short stay operators have pointed to the recent changes to the Residential Tenancies Act, which they say reduces owner rights, as a reason why many prefer the short-term market.
Councils also reported that short stay accommodation plays a valuable role in supporting tourism and local economies, especially in regions where traditional accommodation options are limited.
Key recommendations
To guide future decision-making on short stay accommodation in South Australia, LGA has recommended:
- evidence-based research to assess the correlation between short stay accommodation and housing affordability, availability and community outcomes, and identify existing or required policy levers within the planning system before drawing conclusions
- a statewide registration system and codes of conduct to improve data collection, ensure regulatory consistency, and support informed decision-making
- consideration of operational issues such as waste management, within any new regulatory frameworks
- comprehensive research if introducing zoning or licensing schemes including flexible rating options and locally responsive solutions
- adequate funding and resourcing for councils if new responsibilities are to be assigned.
Any future policy decisions must be carefully balanced to support both housing affordability and economic development without undermining tourism.
LGA thanks all councils that contributed their experiences and perspectives to this important discussion.
About the inquiry
The Select Committee on Short Stay Accommodation will inquire into the:
- role of short stay accommodation in contributing to the rental affordability crisis
- social and economic impacts of short stay accommodation on South Australian communities
- potential to regulate the short stay accommodation sector
- effectiveness of regulatory models adopted in other jurisdictions, both nationally and overseas
- potential taxes or levies that could be applied to short stay accommodation and long-term vacant residential property
- incentives that could be provided to homeowners to transition properties listed on short stay accommodation platforms onto the long-term rental market
- other strategies that could be adopted to activate residential property that is vacant long term.
Find out more
To learn more about the inquiry into short stay accommodation in South Australia, contact scshortstay@parliament.sa.gov.au or 8237 9417.