Hobart Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in Hobart

To legally operate a short-term rental (less than 4 weeks) in Hobart, you must:

• Register your property with the Tasmanian Planning Commission's "Regional Tourist Detector" platform and obtain a permit. This involves submitting a declaration of tourist use.
• Ensure your property is located in an area zoned for short-term rentals. In some residential zones, a development application may be required.
• Meet specific property standards for safety, parking, noise, and guest behavior as outlined in the Short Stay Accommodation Act 2019.
• Collect and remit a 5% short-stay accommodation levy on all rental revenue to the Tasmanian government, to be paid by the guest.
• Provide a 24/7 contact person, such as a co-host or property manager, who can address any guest issues within 2 hours.

As of July 2022, there were 425 registered whole-home Airbnb listings in the Hobart City Council area, earning an average of $2,630 per month. However, the Council has stopped issuing new permits in some areas to limit the impact on long-term rental availability.

Short-Term Rental Licensing Requirements in Hobart

To obtain a short-term rental permit in Hobart, property owners must submit the following to the Tasmanian Planning Commission:

1. Completed application form declaring the property will be used for short-term tourist accommodation
2. Proof of ownership, such as a title deed or property registry extract
3. Floor plan showing all bedrooms, parking spaces, etc.
4. 24/7 contact person details
5. Evidence the property is lawfully constructed and suitable for habitation, such as an occupancy permit
6. Application fee

If the property is located in a zone where short-term accommodation requires a development application, additional documentation demonstrating compliance with planning scheme standards will be required.

Permits must be renewed annually and are non-transferable. Random home inspections may be conducted to ensure compliance.

Failure to obtain the proper approvals can result in fines of up to $300,000. One Airbnb host was threatened with daily fines for renting without a permit after neighbors complained about noise and parking issues.

Required Documents for Hobart Short-Term Rentals

In addition to the permit application, short-term rental hosts in Hobart must have the following documents available:

1. Copy of the short-term rental permit from the Tasmanian Planning Commission
2. Emergency evacuation plan showing fire exits, extinguishers, etc.
3. House rules covering guest behavior, noise, parking, trash collection, etc.
4. Property management agreement if using a third-party manager
5. Insurance certificate showing short-term rental insurance coverage
6. Guest registration form collecting contact details of all occupants
7. Complaint management procedure outlining how issues will be handled

Authorities may request these documents during inspections. Non-compliance can result in penalties or permit cancellation.

Hosts must also keep a register of all bookings, including dates, guest names, and contact information, for at least 2 years. This may be subject to audit.

Hobart Short-Term Rental Taxes

Short-term rental operators in Hobart must collect and remit the following taxes:

1. 5% short-stay accommodation levy on all rental revenue, paid to the Tasmanian government
2. 10% goods and services tax (GST) if annual turnover exceeds $75,000, paid to the ATO
3. Income tax on net rental profit at the applicable marginal rate, lodged annually with individual tax return

Detailed records of all income and expenses must be kept for tax purposes. GST-registered hosts can claim credits for expenses.

Non-compliance with tax obligations can result in significant penalties and interest charges. Some hosts use specialist short-term rental accounting software to automate compliance.

Hobart-Wide Short-Term Rental Rules

In addition to permit and tax requirements, Hobart has several city-wide rules for short-term rentals:

1. Properties must comply with building, health, and safety regulations
2. Guests must not create noise likely to disturb neighbors, especially between 10pm-8am
3. On-site parking must be provided, with no street parking allowed
4. Maximum occupancy limits apply based on bedroom numbers
5. Use of outdoor areas like decks must not impact neighbor amenity
6. Properties must be kept clean, with regular pest control
7. Guests must dispose of garbage properly in provided bins
8. Appropriate short-term rental insurance must be maintained at all times

Violations can result in fines or permit suspension. In one case, an Airbnb property was banned from hosting after repeated complaints about disruptive parties.

Hosts are responsible for guest behavior. Having comprehensive house rules is recommended to ensure guests understand their obligations.

Does Hobart Strictly Enforce Short-Term Rental Rules?

Based on host experiences shared in forums, the Hobart City Council has been strictly enforcing short-term rental regulations in recent years.

Several hosts have reported receiving large fines and legal action threats for operating without proper permits. In some cases, properties have been banned from short-term renting due to repeated violations.

The Council actively monitors platforms like Airbnb and issues notices to unlicensed properties. One host noted that "some owners don't notify Council of problems because it allows them to keep operating under the radar."

Compared to other Australian cities, Hobart is considered one of the strictest in terms of short-term rental compliance. With tourism driving high demand, the Council aims to balance economic benefits with housing affordability and community concerns.

However, enforcement still largely relies on neighbor complaints, so some non-compliant properties may operate undetected. Hosts are advised to fully research and comply with all requirements to avoid issues.

How to Start a Short-Term Rental Business in Hobart

To start a short-term rental business in Hobart, hosts must follow these steps:

1. Confirm the property is in an eligible zone and identify any development approvals required
2. Arrange building and pest inspections to check compliance with regulations
3. Install required safety equipment like smoke alarms, fire extinguishers, evacuation maps
4. Furnish and equip the property to a high standard, considering guest needs
5. Engage a professional photographer for high-quality listing photos
6. Apply for a short-term rental permit from the Tasmanian Planning Commission
7. Prepare key documents like house rules, emergency contacts, booking terms
8. Determine pricing strategy based on local market analysis and revenue goals
9. Create attractive listings on platforms like Airbnb and Stayz, or engage a property manager
10. Implement guest screening and communication processes to manage bookings
11. Arrange cleaning, maintenance, and restocking between guests
12. Comply with all tax obligations, including registering for GST if required
13. Regularly review performance and adjust strategy to optimize revenue and occupancy

Thorough planning and attention to compliance is essential for short-term rental success in Hobart. Joining a local host community can provide valuable support and insights.

Who to Contact in Hobart about Short-Term Rental Regulations

For the most current information on short-term rental regulations in Hobart, contact:

Hobart City Council
Development & Planning Department
16 Elizabeth Street, Hobart TAS 7000
Phone: 03 6238 2715
Email: coh@hobartcity.com.au
Website: https://www.hobartcity.com.au/Development/Planning/Visitor-accommodation

The Council's website has detailed information on short-term rental rules, application forms, and FAQs.

For complex matters, engaging a local lawyer specializing in property and planning law is recommended. The Law Society of Tasmania can provide referrals.

Industry bodies like the Tasmanian Hospitality Association and Stayz Host Community can also offer general advice and support for short-term rental operators.

What Do Airbnb Hosts in Hobart Think About the Regulations?

Based on posts in forums like Bigger Pockets and Reddit, Airbnb hosts in Hobart have mixed views on the short-term rental regulations:

"The Council is just greedy for money from fines and permits. Plenty of people still rent without approval." (Reddit)

"We got a huge fine for letting guests use our deck after 10pm. No more Airbnb for us, it's too risky." (Bigger Pockets)

"You'd be crazy to buy a property for Airbnb here without checking with Council first. The rules are strict, and they definitely enforce them." (Reddit)

"The 5% levy is annoying, but I just pass it on to guests. Compliance is a hassle but worth it to avoid problems." (Bigger Pockets)

"I got my permit 2 years ago, but Council said they've stopped issuing new ones in my area now. Glad I got in early!" (Reddit)

Common themes are the strictness of the rules, the need for caution before investing, and the importance of factoring compliance costs into the business model.

While some hosts take the risk of operating without approval, the consequences can be severe. Getting professional advice upfront is highly recommended.

Overall, short-term rentals can still be profitable for hosts who carefully navigate the regulatory landscape in Hobart. However, with the Council taking an increasingly restrictive approach, the market is becoming more challenging.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.