Q: I own a property in a condominium (strata) where I live and offer Airbnb short rent to help my income for the last 6 years. I registered my property in STRA, but I have some questions that I would like to ask you to clarify what should I do please: 1) What type of insurance should a short-term rental host in NSW have and is it compulsory? 2) Does the owner that lives in a property that offers short-term rental obligated to inform strata when the property is rented and provide guest's details?
What type of insurance should a short-term rental host in NSW have and is it compulsory? Do I have to let strata know and provide guest’s details? – Edilza, NSW
A: Contents insurance protecting your lot and belongings isn’t compulsory for strata property owners in NSW. However, if you are thinking of using your property for short-term renting it is highly recommended that you have a contents insurance policy in place.
It is important to disclose the fact that you will use your property for short-term renting. Not disclosing this information may result in claims being declined, as short-term rental protection may need to be counted as an addition to the base insurance plan.
As for informing strata, yes, it is required that you at least let your owners corporation know. It is also recommended that you let your nearest neighbours know. It is recommended that you provide them with your contact details. For more information, we recommend you look at your strata property’s by-laws as there may be rules around short-term rentals.