Canberrans who rent their properties on a short-term basis are exploiting a loophole in the national building code, putting peoples safety at risk and tarnishing the local tourism industry, a peak hotel body has warned.
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Australian Hotels Association ACT branch general manager Gwyn Rees said the internet was fuelling a market for short-term accommodation in the ACT.
He said these operators had a competitive advantage over "legitimate" accommodation providers because they were classified differently under the Building Code of Australia and did not have comply with the same standards for security, fire safety and disability access. He said they also gained a competitive advantage by only paying domestic rates on utilities.
"[We] are not concerned about fair and robust competition between legitimate operators," he said.
"However, people who on-sell these rooms have the very real potential to cause harm on a number of levels and undermine the high standards set by the accommodation and tourism industry."
He said apartments and spare rooms that were rented out on a short-term basis created security and amenity issues for surrounding neighbours.
"There is also a risk to permanent residents and owners from fire, floor or other damage caused by the occupants of one of these apartments. A property insured for domestic purposes would not be covered for damage if used for short-term accommodation."
Tourism and Transport Forum chief executive John Lee said the building code needed to be amended to ensure a level playing field.
"We believe there has to be a national discussion across all states, maybe there needs to be a new [building code] class created for serviced apartments."
Under current standards, hotels and motels are classified as Class 3 and sole occupant units like apartments are Class 2.
He said the internet had allowed people to convert a residential apartment into tourist use at the click of a mouse.
A number of websites currently advertise overnight apartment accommodation in Canberra.
Real estate agent Peter Maloney, who also runs online business Accommodate Canberra, said short-term rental accommodation did not have an unfair advantage over hotels and catered for a different market. "We are not competing with hotels and if we are talking about the building code, it continues to get improved and all our stock is under four-years-old."
Accommodate Canberra currently manages 85 furnished apartments in complexes throughout the capital. People can book the apartments for seven nights or up to one year and rates begin at $143 a night.
Mr Maloney said he had not received any complaints from neighbouring residents.
A spokesperson for the Minister for Environment and Sustainable Development, Simon Corbell, said there were no plans to change the Territory Plan or the planning system in regard to short-term rentals.
"Providing the land is being used in accordance with the terms of the lease, the planning system typically does not prevent the lessee from sub-tenanting the property, either on a short or a longer term basis."
A Productivity Commission report suggested last year the use of Class 2 buildings as serviced or managed apartments for short-term accommodation reduced the amenity of long-term residents and led to a non-compliance with standards.
The Australian Building Codes Board is inviting stakeholders to put forward options for change.