New penalties apply for “out-of-control” parties in short-stay rentals

Victoria has introduced “tough” new laws aimed at preventing owners of short-stay apartments and their tenants from holding unruly parties.

Victoria’s Minister for Consumer Affairs, Marlene Kairouz, said, “Residents living in apartments next to short-stay accommodation shouldn’t have to put up with rowdy parties and out-of-control guests – and that’s what these tough new laws deliver.”

“We’re also making sure apartment owners who provide short-stay accommodation remember their responsibilities when their guests play up,” the Minister said.

Fines of up to $1,100 for beaches of conduct standards

The new laws, which were introduced on 1 February 2019, mean that owners and their quests will be jointly or individually liable for any compensation, fines, or damages to common property.

Owners and their guests will be liable for fines of up to $1,100 for breaches of new ‘conduct standards’.

The Victorian Civil and Administrative Tribunal will have new powers to:

• Award compensation of up to $2,000 to residents for loss of amenity
• Impose fines of up to $1,100 for breaches of conduct standards
• Prohibit apartments from being rented out for short-stay accommodation if there three or more breaches within 24 months
• Short-stay apartment owners and their guests will be jointly and individually liable for any compensation, fines and awards for damage to common property.

Owners corporations can issue breach notices if guests:

• Make unreasonable or excessive noise
• Interfere with residents’ enjoyment of their unit or common property
• Create health and safety hazards
• Obstruct common property
• Damage a property or common area of the building.

Long-term rentals not affected

The reforms to the Owners Corporations Act 2006 were passed last year.

Short-stay apartments are apartments, houses and rooms rented out like hotels through online providers such as AirBnB.

As most short-stay apartments where unruly parties take place are only let for up to seven days and six nights, the reforms only apply to these properties. Longer stays are not affected.