In this blog/video we discuss the TRAPS you might not know about if you want to rent your QLD property out on Airbnb!

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Hi everybody - George Sourris, Empire Legal.

Today's topic: NEW 2025 ATO Clearance Certificate Updates for ALL QLD Property Transactions!

Planning to Airbnb your Queensland property? It's not as easy as you think. If you own a property in Queensland and are thinking about renting it for short term stays, there are several important factors to consider regarding council approval. So, before getting into the specifics, it's crucial to understand that most residential properties in Queensland are intended for long term use by a single household.

When you start renting out rooms or the entire property for short term stays, you're altering the property's "use", which may require approval from local council depending on the zoning and rules of the area.  All right, so it's home business vs short term accommodation.

A key point in the approval process is whether you live on the property you're renting out for a short term stay. If you're staying on the property and renting out a room, this falls under the category of a home business, similar to running a bed and breakfast. 

However, if you're renting out the entire property and you're not living there, it's more likely to be classified as short term accommodation, which typically requires a specific development approval from Council. This distinction is crucial as it determines the specific rules you must follow and the necessary approvals you need to obtain.

Obtaining approval from the council for short term rentals involves a few key steps and a private town planner can assist you throughout this process. There are four parts to explore here:

Number 1 - Assessment. 

The first step is to conduct an assessment of the property and your intended use. This will help determine whether your property is in a residential zone that permits short term accommodation or if you need to apply for a development permit. This is where consulting a town planner can be particularly helpful.  

Number 2 - Development Application.

If your property requires  a development permit, you must submit a development application to the local council. This process can be complex, so it's often necessary to involve a town planner. The Council will evaluate your proposal based on the planning scheme and other applicable guidelines.

Number 3 - Public Notification. 

Depending upon the Council's requirements, your application might need to go  through a public notification process. This generally involves informing nearby residents and inviting feedback or objections. Again, a Town Planner can guide you through this step. 

Number 4 - Building Approval.

In many cases, you'll also need approval from a building certifier to ensure the property complies with safety and regulatory standards. This might involve making modifications like installing fire alarms and exit signage. 

If you need a town planner, guys, we have a contact. Send us a DM or an email and we can obviously put you in touch.

Expected Costs:

So, this can vary from council to council. But typically, you want to budget around $10,000 at least, because the development application fee alone can be anywhere between $5,000 - $9,000, depending on the council. Then, town planning fees - you have to hire a professional, that's going to cost.  Also consider building approval costs; depending upon the scope of modifications required, you might have to budget some money for that. Finally,  insurance.  Your premium might go up and possibly getting public liability coverage.

Okay, so navigating the council approval process for short term accom in Queensland can be complicated but again, you need a town planner to make sure you're following the correct procedures and meeting local regulations. While the costs can be significant, the reward of running a legally compliant short term rental that's on Airbnb or something similar is well worth the investment - the return can be significantly higher than a long term tenancy; which we often find is the case, especially in touristy areas like the Gold Coast. 

Note: costs and requirements may differ depending on your specific council and property circumstances, so make sure you consult professionals to get tailored advice before you commit. 

Let's quickly talk about the Gold Coast City Council in particular. So, new property owners planning to rent out their property for short term stays, like Airbnb, must seek approval from the Gold Coast City Council for a Material Change of Use development application.

This cost is around $8,000-$9,000 for the application with no guarantee of success. So, this applies even if you only plan to rent your property out for a few weeks a year. Any arrangement where the property is let for less than 90 days constitutes short term accommodation and requires council approval.

Here's the catch - each time you switch between using the property as a primary residence or a short term accommodation, you must submit a new Material Change of Use application.  A bit ridiculous, right? You're not going to spend $8,000-$9,000 every time you want to switch it from short term to non-short term.

But anyway, that's the current laws. So in essence, you need to choose whether the property will be used for short term letting your home. You cannot legally do both. Additionally, Council treats these uses differently when calculating rates for the property. Rates are considerably higher for properties designated for short term accommodation.  Alright, now if you fail to obtain the necessary Material Change of Use application, the council may deem the use of your property unlawful, potentially leading to a Show Cause notice. Failure to comply could result in severe consequences, including fines of up to $600,000 for individuals and over $3 million for companies.

The council can also issue on the spot fines exceeding $1,500 per day for non-compliance. Operating a short term rental without the proper approval is risky and could lead to significant financial penalties. 

Guys, there you have it. Airbnb -a bit of a sneaky one there that a lot of people don't know about. You can't just buy a property and put it on Airbnb.  You have to make sure you have that Material Change of Use application. You're going to have to budget at least $10,000 most of the time. Each council is different. We don't specialise in this ourselves, but we do have professionals we work with. If you need help, get in touch and we can put you in touch with the right people.

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If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.