Rate rise for Kiama short-term rental properties could become reality

At Tuesday night's council meeting, Cr Stuart Larkins put forward a motion calling on council to draft a motion for the upcoming local government conference to seek support on changing the rates charged to short-term rentals (STRs).

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At present they are charged a residential rate but Cr Larkins wanted to see that changed to a commercial rate.

"These are businesses operating to gain a commercial profit," Cr Larkins said.

"These are businesses that can access green waste services, rates, water and electricity subsidies and residential parking. They should be paying a commercial rate to council.

"Recently I spoke to a local resident in Werri Beach who informed me she has a number of STRs on her street that remained vacant throughout the year. When they are used it results in a high volume of traffic in her street.

"One time over a weekend she counted 38 cars parked on her street."

Cr Matt Brown opposed the motion, suggesting that it "demonised" the property owners who he said were often Kiama "mum and dad businesses".

"It doesn't make sense - if people are not in these houses they're not putting any impact on the rate payers, so they probably shouldn't be charged a different level of rate," Cr Brown said.

He also noted STRs provided much-needed tourist accommodation.

"We don't have the hotels and motels that we used to in this town," Cr Brown said.

"In fact this council sometime ago abolished the tourism zone sector, so there's actually no incentive for a developer to go and build a hotel or a motel."

He said the STRs are often full over the weekends and, if council looked to discourage them then visitors would opt to stay in Shellharbour or the Shoalhaven.

Councillors voted in favour of the motion to canvass support for a change in STR rates.

Owners of STRs were also the subject of a motion from Cr Imogen Draisma, who called on council to send letters to those non-Kiama residents encouraging them to place their properties on the rental market instead.

Her motion noted that the recent census showed that 16.5 per cent of residences in the Kiama LGA were unoccupied.

"I think it's imperative that council do what it can to address the rental crisis in our community," Cr Draisma said.

"There are many families outside the area who own holiday houses and may not be aware of the crisis facing our community at this point in time.

"This is a measure which is to ask those people who live outside the area who are classified as non-resident rate payers to seriously consider putting their secondary properties on the local housing market to address the shortage that we have."

Cr Draisma's motion passed without any objections.

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