New South Wales is introducing new laws to govern short-term rentals like those offered through Airbnb.

The state government will be enforcing a new Code of Conduct for hosts, guests, letting agents and online booking platforms in the short-term rental accommodation industry from December 18 2020.

The mandatory code covers obligations, guidance and minimum standards of behaviour that have to be met by all parties.

Minister for Better Regulation and Innovation Kevin Anderson highlighted how the popularity of short term rentals “has exploded in recent years”, becoming a $30 billion industry. However, he added that the sector “has been missing a set of rules to protect the rights of both hosts, guests and neighbours.”

“The NSW Government is introducing these laws as part of our broad reform of the sector,” Anderson said in a statement. “Together, they will ensure the minority of participants who are giving the sector a bad name are removed and the short-term rental sector is improved for hosts, guests and communities.”

What the new laws cover

Under the code, guests are not allowed to damage the premises or make noise that “unreasonably disrupts your neighbours”. If these rules aren’t met, you could face warning notices, fines or being added to the exclusion register – where you’re banned from booking short-term rentals for five years.

There will be a ‘two strikes and you’re out’ policy for misbehaving guests, before they’re added to the register.

Hosts on the other hand must have insurance that covers liability for third party injuries and death. Plus, your neighbours must able to contact you if there are any issues.

“You must enable your neighbours to contact you, or your authorised representatives, about concerns relating to your premises by giving them your contact details and being available between 8am and 5pm each day,” Fair Trading said.

Hosts can’t rent out their premises to anyone on the exclusion register.

There is a short-term rental accommodation premises register being created, which is set to begin in 2021. Under the new laws, hosts have to register themselves and their premises on it.

Booking platforms and agents have to let hosts and guests know about the code. Once the accommodation register is out, they can only advertise places on that list.

They can’t advertise or facilitate accommodation to a host on the exclusion register.

More broadly, complaints can be made to NSW Fair Trading if there have been any breaches to the code, with Fair Trading having the power to ban problematic hosts or guests.

“We have all heard the horror stories of hosts doing the wrong thing or the house guests from hell behaving disgracefully in holiday rentals,” Anderson said.

“If you are going to carry on like that in someone else’s house or neighbourhood, be warned – under these new rules you will be banned, and for a very long time.”

Airbnb’s response to the code

Airbnb welcomed the new code, with the company’s Head of Public Policy for Australia, Derek Nolan, saying it “will help ensure the tiny percentage of participants within the sector who fail to act responsibly are held to account.”

“The Government has acted in good faith to implement a tough-but-fair system that gets the balance right and addresses the needs of the community,” he said.

“The overwhelming majority of hosts and guests on Airbnb are good neighbours and respectful travellers who care deeply about the communities in which they live and stay.”

Earlier this year Airbnb banned all parties and events on its listings and put a cap on the number of people on a premises at 16.

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