Can our committee prevent short term rentals with minimum rental term bylaws?

Any change to the by-laws requires a special resolution to be passed at a general meeting, such that all owners have the chance to vote on its inclusion or not.

However, there are limits on what a by-law can provide for. Relevantly, this was discussed in Admiralty Towers II [2019] QBCCMCmr 567 where the adjudicator relevantly provided (emphasis added):

[29] By-law 11(c) prohibits leases of shorter duration than three months without the written consent of the body corporate, “which may be given and withdrawn at its absolute discretion”. Mr Press points out that this is contrary to the Queensland Civil and Administrative Tribunal’s (QCAT) decision in Body Corporate for Hilton Park CTS 27490 v Robertson. It is also contrary to numerous adjudicators’ orders. 

[30] As recognised in those decisions, by-laws of this nature offend sections 180(3) and (4) of the Act. 

[31] As Member King-Scott recognised in Body Corporate for Hilton Park CTS 27490 v Robertson, short-term letting is a “type of residential use” protected by section 180(3). He also found leases to be a form of “other dealing with a lot” protected by section 180(4). 

[32] One owner drew a distinction between the by-law consider by Member King-Scott and the present by-law on the basis that the former categorically prohibited short leases, while the latter only makes them subject to body corporate consent. She argued that this amounts to regulation rather than prohibition. 

[33] While I accept that by-law 11(c) provides for the regulation of the use and enjoyment of a lot and therefore is consistent with section 169(1)(b)(i) of the Act, it is nevertheless invalid because it offends the sections cited above. Those sections are not only concerned with prohibition, but also with “restriction”. The ordinary meaning of the word “restrict” is to place limits upon something. The limiting factor imposed by by-law 11(c) is body corporate consent. A short-term lease may not proceed without it, while longer leases may proceed without interference. Consent may not be granted at all or it may be withdrawn at any time at the body corporate’s “absolute discretion”. By-law 11(c) is contrary to the Act, invalid, and I will order the body corporate to remove it from the community management statement.

Accordingly, any by-law which seeks to limit the term of occupation of a lot is unlawful.