Answers sought on short-stay

LOCAL metropolitan councils are being asked to clarify regulations on the use of residential apartments for short-stay accommodation.

While the issue has been bubbling away in places such as Busselton and Dunsborough for some time, inner-city local governments are also considering the issue as apartment owners, the Australian Hotels Association and corporate accommodation providers seek clarification on their rights.

It is understood the City of Perth has had several meetings regarding the issue and are working towards a resolution.

Executive Apartments director Graham Nicol, whose company leases 120 apartments on behalf on investors on a short-stay basis, said that, in the past couple of years there seemed to be a drive by local councils to crack down on short-stay accommodation.

“There is a perception that that short-stay accommodation and serviced apartments are all about holidays and parties and get out of control, but most of our clients are corporate and they are in a very controlled environment; if anyone plays up, we can toss them out,” Mr Nicol said.

“Short-stay apartments have a legitimate role to play, especially for the corporate traveller. They fill a niche not provided for by hotels, and the area needs to be clarified and regulated.”

Executive director of the Australian Hotels Association WA, Bradley Woods, said his organisation had been trying to get the issue addressed for some time.

“There are no clear guidelines about short-stay accommodation, and policing is a problem too,” he told WA Business News.

“There needs to be a state-wide approach.

“Town planning provisions need to be altered to deal with this problem.”

Mr Woods said drawing a distinction between tourist and corporate travellers would be very difficult and that the rules should be the same for both.

He said there had been ongoing discussions with the City of Perth and the issue was close to being resolved.

City of Perth CEO Frank Edwards said the city has been made aware of a number of instances where it appeared approved residential developments were being used unlawfully as serviced apartments or other forms of short-stay accommodation.

He said the city was investigating these claims and would be taking action where appropriate, with strata bodies being notified about these issues and advised of the implications of such uses.

Atkinson and Associates legal director Mark Atkinson said a strata company could not have a say over the activities of strata owners unless it increased insurance or interfered with behavioural by laws, but that most local governments required owners to have a permit if using premises for short-stay purposes.

“There are some health and safety issues with having short-stay accommodation in residential strata blocks, but those issues aren’t insurmountable, and my opinion is that the mix makes an improvement and contribution to city living,” he said.

Earlier this year, the State Administrative Tribunal tackled the issue and handed down a decision stopping 10 apartment owners at Bijou Marina Village in Port Geographe from advertising units for lease, and ordered them to cancel future leasing contracts.

SAT found that short-stay accommodation was not permitted under the Shire of Busselton’s Town Planning Scheme, and that short-term tenants had been making a nuisance of themselves.