New regulations for short-term holiday letting need to crack down on the "party house" culture, an Illawarra property manager says.
The state government has released a new discussion paper, as they finalise how new rules and regulations for short-term rentals will work.
The new regulatory framework includes a mandatory Code of Conduct, which will aim to provide for the resolution of complaints and disputes regarding the conduct of hosts and guests for Airbnb-style letting.
Greg Channer is managing director of Emerald & Aqua, an agency managing Illawarra holiday accommodation.
He welcomed the release of the draft Code of Conduct.
Mr Channer said short-term rental accommodation is a key driver of tourism in regional NSW, and the impacts on residents' amenity resulting from inconsiderate or anti-social behaviour by some short-term rental guests needs to be addressed.
"The industry is being held accountable for poor guest behaviour, (but) it's these few guests and the culture of party houses that needs addressing," he said.
The proposed code will allow for disciplinary action to be undertaken - including the issuing of warning notices and directions, recording a 'strike' against a host or guest - and the creation of an exclusion register to deal with serial offenders.
Hosts' obligations relate to holding an appropriate level of public liability insurance, and providing neighbours and owners' corporations with information such as the host's contact details.
Guests will have to ensure their behaviour does not unreasonably impact on neighbours, and take reasonable care of the property.
Mr Channer said holiday homes are part of the Australian fabric, but the spread of some popular sharing platforms has put financial returns over culture.
"This has led to these platforms popularising services like 'instant booking', where guests booking are locked in automatically and property managers and hosts are locked out of contacting the guest prior to confirmation.
"Instant booking has led to the misuse of holiday homes by a few poor guests and the rise of party houses.
"The current draft code doesn't go far enough to protect the amenity of neighbours and residents."
Mr Channer said the code should address features such as 'instant booking'.
He also said booking platforms needed to remove features that encourage "party house" type behaviour, and ensure property managers speak with each guest prior to accepting their booking.
Mr Channer said the Wollongong economy benefits from holiday homes, which boost the area's cafes, restaurants, tour operators and employment.
He said the Illawarra is set to continue to benefit from the growth in holiday homes, as long as the professional management of the industry meets the existing requirements.
"The government's response reflects the economic value that short-term rental accommodation brings to the economy, (and) seeking to collaboratively work with the industry to develop sensible controls while growing the economic benefit within a regulatory environment," he said.