The new code of conduct will apply to online accommodation platforms such as Airbnb and HomeAway, letting agents, hosts and guests.
It will ensure local communities continue to benefit from short-term holiday rentals, while protecting neighbours from anti-social behaviour.
The code of conduct will establish a ‘two strikes and you’re out’ policy. Hosts or guests who commit two serious breaches of the code within two years will be banned for five years and be listed on an exclusion register.
Online accommodation platforms and letting agents will not be allowed to offer services to anyone, or any dwelling, that is listed on the exclusion register.
Minister for Better Regulation Matt Kean said the short-term holiday letting reforms bolster NSW’s sharing economy while clamping down on unruly guests.
“Our plan is a win-win. It acknowledges the huge financial contribution online booking platforms make to the NSW economy, but also takes a zero-tolerance approach to raucous guests,” Mr Kean said.
Changes are also being made to the Strata Schemes Management Act 2015 so owners’ corporations can pass by-laws to ban short-term letting in their block, if the host is not present, and they get a 75 per cent majority vote.