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     You know the pros and cons.
You’re interested in getting more from your investment.
And fundamentally, you’ve decided it’s for you.

  Here’s a helpful checklist of the things you should be doing as an apartment owner before letting your property out on short stay sites.


 

 

1. Tell you body corporate committee

You have a responsibility as a member of your body corporate to tell the committee. Your body corporate is in control of your maintenance and insurance, which are directly affected by more guests being on premises so always let them know first.

 

2. Check your insurance policy

Most home and contents and public liability insurance will not provide coverage for commercial activities, so while the ad hoc rental arrangement might be covered, operating your property like a hotel is unlikely to be.

3. Think carefully about how your let will impact the building's security

    • A big issue in recent times has been how keys and access to properties has been organised by owners. No, putting keys in pot plants outside isn’t a sound strategy. Neither is leaving a lock box on a nearby bike rack! This is a risk for your whole building’s security if keys fall into the wrong hands
    •  Look into whether your body corporate has restricted keys so that they cannot be duplicated for security reasons
 

4. Where possible, try and meet your guests

There’s no rule or obligation for owners to meet guests. That being said, recent incidents where people didn’t ‘screen’ guests has left them exposed, as the guests misled hosts about the size of a group or in fact their age.

5. Ensure your planned listing clearly states community by-laws

    • Your listing is for your private property, but inevitably, your guests will be on common property at some point – and they should be aware of the rules
    • Smoking, noise, use of the pool, gym and how to dispose of rubbish are the common ‘nuisance items’ we observe in short stays gone wrong

6. Create a welcome note for all guest

Explain that neighbours would appreciate it if you treated the apartment building with respect and courtesy. ‘People live in this building, so please treat it as your own’.

 

7. What if there is an issue?

Provide a list of emergency contact numbers to short stay guests and highlight emergency evacuation protocol and any fire hazards. 

8. Form a designated committee

As an owner at the apartment building, discuss the issue of short stay accommodation with other owners and even form a designated committee to discuss the issue regularly.

9. Designated short stay warden

In large apartment complexes, investigate having a designated short stay accommodation warden that is tasked with meeting all incoming guests. The warden would be responsible for welcoming new guests, walking them through the building and highlighting any fire hazards.

 

10. Keeping records

Keep accurate and detailed information on all short stay guests as this information may prove pivotal when making insurance claims down the track

Why follow the above?

  • Avoid disputes in your community
  • Allow your body corporate to adjust insurance coverage, and ensure you aren't liable for voided community policies
  • Avoid compromising your community's security
  • Ensure you're not up for fines or penalties for breaching by-laws 
 

 

Contributions from Grace Lawyers | Colin Grace
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Ace Body Corporate Management
www.acebodycorp.com.au
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.Ace Body Corporate Management offers this newsletter to clients to assist in updating them on company and industry news. The content within this newsletter is of a generic nature and may not be applicable to all owners corporations. Ace Body Corporate Management attempts to provide the most up-to-date and accurate information for our clients, however we strongly recommend that individuals and committees seek further advice before acting on any information in this newsletter.

Here’s a helpful checklist of the things you should be doing as an apartment owner before letting your property out on short stay sites.