By Rowland Hill, Noosa Resident
Noosa council said its objective for the Short Stay Letting Local Law was to halt the growth of short-term rentals flooding Noosa’s residential zones.
But events since have many questioning the effectiveness of the Local Law regulations and approval processes.
The law includes building standards and approvals, annual registrations, a renter code of conduct, and complaints hotline. While the council said there would be no new SSL approvals in low density residential areas, they increased by 12.5 % in the first year. In November 2022 at the local law review the Council extended the ban to medium and high-density zones. The number of SSLs approved in these zones also increased.
In designing the Local Law there were compromises, including a nod to resident ratepayers taking out-of-town holidays and renting their homes to visitors to cover rates and other costs.
To deflect voter complaints about loss of this opportunity, a 60-day rule was built into the Local Law, permitting owners to let their Principal Place of Residence on no more than 4 times per calendar year for up to 15 days each time.
Now some investors are exploiting this concession to turn properties once ineligible for Short Stay Letting approval into income earning investments. One example is a Little Cove property long-term rented for more than 20 years before being bought by investors. The tenants were evicted (one couple moving to Cairns when they could not find affordable housing and taking their health business with them).
The building that had housed four people at a time in two apartments for more than 20 years was demolished, and a new 5 bedroom six-bathroom dwelling with a bed room configuration that accommodates 15 people replaced it. As well as being vastly different in scale and intensity to the demolished building, its open-wall concept compromises next-door privacy, as does noise from the adjacent pool and courtyard. There is light spillage into neighbouring properties.
Nevertheless Council accepted the property’s development for short term accommodation subject to it satisfying various requirements including:
land use that does not regularly result in more than ten unrelated persons being present on site;
use that does not adversely affect the amenity of the residential neighbourhood;
its design and and orientation such that the majority of outdoor living areas face away from the habitable areas of adjoining dwellings;
it makes available no more than five bedrooms (despite sleeping 15); and
does not constitute a party house.
The Council assessed that it met these standards. Neighbours question this but have no recourse. There is no requirement for Council to consult neighbours in assessing these applications.
The decision meant the loss of two established, affordable and sought-after long-term rentals, and a small business; and contributes to the continued erosion of community cohesion and residential amenity in a low-density zone.
For the developers, even with the limitations of the 4 x 15-night rule they can expect returns that match other investments in today’s low interest environment. Much of this profit will most likely leave Noosa, adding to the $140m that Noosa’s SSL properties delivered to absentee investor/owners in 2022.
As to Local Law compliance, the issues of confirming PPR declarations and the number of nights properties are commercially let under the 4 x 15 rule will be challenging for Council.
For some, the lack of transparency around the approval process means decisions are not passing the pub test.
Editor's Note:
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