Wednesday, April 26, 2017
Body Corporates in Queensland can't prevent AirBNB in their buildings
See Macleay Tower & Villas [2017] QBCCMCmr 12 (17 January 2017)
http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/qld/QBCCMCmr/2017/12.html
Monday, December 26, 2016
Short term letting and Airbnb
A recent decision of Lynkim Lodge [2016] QBCCMCmr 419 (14 September 2016) supports this. See decision here.
However, most residential buildings prohibit the use of lots for commercial or business purposes. When does renting an apartment on Airbnb stop being a residential purpose and become a commercial purpose?
In NSW, there is an action group trying to protect residents of apartment buildings from the dangers of short term rentals. See NeighboursNotStrangers. See also here. They report that apartments in buildings with high short term rentals will drop in value and that there are higher body corporate costs.
Saturday, January 25, 2014
Queensland Coastal Apartments - Capital Losses
"Across the Sunshine Coast, median house values are typically most expensive in the Noosa region and most affordable between Caloundra and Maroochydore. Sunshine Beach has the most expensive median house value ($894,733) and Currimundi the most affordable at $400,631.
Median house values across the Gold Coast and Tweed Coast tend to be most expensive at the northern end of the Gold Coast. Across the region, the most expensive houses are found in Surfers Paradise ($962,563) and the most affordable are in Labrador ($392,681)."
Medium value as at September 2013 for apartments:
Noosa Heads - $528,000
Maroochydore - $323,857
Mooloolaba - $358,380
Kings Beach - $367,888
Surfers Paradise - $337,767
Broadbeach - $401,824
Palm Cove - $336,795
Port Douglas - $251,312
Number of apartment sales:
Noosa Heads - 238
Maroochydore - 404
Mooloolaba - 234
Kings Beach - 124
Surfers Paradise - 1068
Broadbeach - 418
Palm Cove - 54
Port Douglas - 270
Change in value over past 5 years
Noosa Heads - negative 23.3%
Maroochydore - negative 17%
Mooloolaba - negative 5.2%
Kings Beach - negative 13.7%
Surfers Paradise - negative 15.4%
Broadbeach - negative 10.5%
Palm Cove - negative 21.5%
Port Douglas - negative 13.1%
Wednesday, December 21, 2011
The Oracle - Developer Wins Lawsuits
Interestingly, the judge's decision (which is long and complex) discussed issues about when a residential apartment building is and can be operated as a hotel or short stay letting operation.
"The contract provided that any authorisation of a person as a letting agent would be in the terms of the Caretaking and Letting Agreement annexed to the Disclosure Statement. That agreement provided for the entity appointed by the body corporate to operate a letting business, and to use certain common property for specified purposes. The letting business was not limited to long-term tenancies. Nothing in the Caretaking and Letting Agreement provided that the letting agent could not conduct its letting business so as to attract short-term tenants and holiday-makers. The letting business involved associated services commonly rendered in connection with letting lots in similar developments and “any other lawful activity.” This authorised the provision of services to guests occupying apartments, including guests staying for a short time who might require room service, a mini-bar and other “hotel-like services”."
"The fact that [the onsite manager] provides guests with certain “hotel-style services” does not mean that the tower has ceased to be a “residential tower” in the sense earlier described. The fact that some of the occupants are there for a short term does not mean that the tower is not a residential tower. The contractual promise of a lot in a residential tower relates to a tower used for residential purposes. The relevant provision distinguished the residential component from the retail component of the development. In its contractual context, a residential tower does not mean simply a tower for owners who are residents or long-term tenants."
Sunday, December 4, 2011
Short Term Only
"Quest on Story resident Cameron Green said that unless he and the owners of another eight apartments in the inner-city Kangaroo Point building could find the money to fight a legal battle, they would be out on the streets.
The residents bought their homes unaware that under the town plan they could only be used for short-term stays.
In many cases the apartments were advertised as suitable for first home buyers, the new owners received first home buyer's grants and in all cases solicitors carried out all the relevant searches."
Sunday, July 17, 2011
Apartments that are not zoned for residential living
"Unit owner Cameron Green said lawyers carried out standard property searches for him in 2009 but this did not reveal that only short-term occupants were allowed. He said he and other buyers were not made aware when they bought their homes that they could not live in them permanently, due to a development condition imposed on the 14-year-old building. It is understood a building approval search would have revealed the problem but this type of check is generally considered to be “optional” during conveyancing."
Friday, April 22, 2011
NY Short Term Rentals Law
Sunday, October 31, 2010
Risks With Short Term Rental Buildings
When I am looking to buy an apartment in Brisbane, I look at Trip Advisor to see if there are reviews about the apartment building and the onsite manager. As a general rule, if the apartment building is listed with TripAdvisor, I will only buy if I am seeking a non-residental investment. There is limited resale opportunities for short term non-residential buildings.
Example Reviews:
- 212 Margaret
- Casino Towers
- Aurora
- Charlotte Towers
- RiverCity
- M on Mary
- Evolution
- Felix
- Festival Towers
- Skyline
Many reviews highlight the problems -- these buildings were designed for residential apartment living, not as hotels. People ask for adjoining rooms, and don't get them (of course). Items from rooms are stolen. Linen trolleys and food trays are left in hallways, as there are no service cupboards or service rooms for hotel staff. Furniture breaks, as the apartments were furnished for residents, not using hotel quality furniture. No minibars. Parking problems. I wonder what the owners of these apartments think about their real estate agents who are managing their investment -- a real estate agent pretending to be a hotel company.
I love this recent review for Evolution: "What a disaster. We never new accomadation could be so foul .. so many light bulbs broken, Filthy carpets, No drinking glasses (even when you ring & ask a certain staff member who couldn't have been any more passive agressive they still don't come) We changed rooms which was even worse, kitchen tap fell off in our hand, no shower door as it had broken off, huge rip in the lounge, even filthier carpets, rug all ripped, more light bulbs out, TV not tuned so most of the channels hissed at you a lot like most of the staff.. broken light shades, blind pullies broken. When we checked in they held on our credit card $200 for breakages.. there was nothing left TO BREAK!! This place is not rateable unless there is a minus."
Why would anyone want to buy in this building?