New short term rental rules set to be introduced in Newcastle have been criticised by accommodation providers as "rushed" and potentially harmful to the local economy.
The NSW Government on Friday announced new Short Term Rental Accommodation (STRA) rules to be introduced from July 30.
The rules include a cap of 180 days per year that non-hosted STRA can be leased in seven NSW locations, including Newcastle and parts of Muswellbrook. Newcastle City Council requested the cap in a submission to the Department of Planning, Industry and Environment amid neighbour complaints about poor guest behaviour.
STRA providers will also be required to sign up to a government-run register, and must comply with new rules, including fire safety standard requirements.
Will Creedon, who is the managing director of short term accommodation provider Alloggio, said he supported more regulation for the industry, but that the short timeline to register was concerning.
Related: Businesses to feel pinch of regulation on short term rental industry
"I think the spirit of how the NSW Government wishes to articulate and register holiday homes across NSW is very positive," he said. "What is concerning is the timeframe they wish to introduce tens of thousands of holiday homes into a platform that is yet to be delivered.
"We absolutely want to be part of the government program, but agents and holiday home owners must have the necessary details in place and have the ability to comply with the legislation and regulation, which will take at least 30-50 weeks."
In terms of the 180 day cap, Mr Creedon said this could make it hard for people to move to the city
"We want to attract new businesses from NSW, Australia and beyond, so we need to relocate people into Newcastle," he said.
"These people won't be able stay in a short term rental while they find a permanent property if they're not there. The apartment and holiday home owners will put them into permanent rental, which means they're out of the market."
Holiday rental platform Stayz is calling for a six-month delay to the new short-term rental rules to allow for further consultation and trials of the regulatory framework.
