Question: Can we introduce an extra levy for unit owners who short-term let their unit?
Can a body corporate in Queensland introduce an extra levy for unit owners who are using their unit for short-term letting like Airbnb?
Brisbane City Council charge people who use their property for short-term letting additional rates. Can we do something similar?
Answer: Your neighbours can use their lots for whatever they like, as long as that use does not break the law.
First, the lawyer’s answer…. body corporate levies, more properly ‘contributions’, are the way a body corporate raises money from lot owners to pay for common expenses. Contributions are calculated based on a proposed budget of expenditure. Where the budget falls short, or an unexpected liability arises, a special contribution is raised to cover the shortfall or extra amount, as the case requires.
Contributions must be levied against lot owners pro rata their contribution schedule lot entitlements unless the contribution is for one of a few specific exemptions such as some types of building reinstatement insurance and public risk insurance of the common property, both of which are charged pro rata the interest schedule lot entitlements. The answer to this question then appears to be ‘no’, at least in the first instance even if, for example, a body corporate is incurring additional expenditure based on the Airbnb ‘use’ alone; e.g. extra pool or BBQ cleaning.
If however a lot owner uses their lot for a riskier activity, and that impacts the body corporate’s building reinstatement insurance premium, then the body corporate can adjust the premium payable by the ‘risky’ lot owner, to fairly reflect the lot owner’s risky activities versus the total risks covered by the policy. The example given in the Regulation Module is a lot owner who has a small manufacturing business in their lot, that involves storing flammable chemicals.
So, where a case can be made (typically by comparing pre and post Airbnb insurance quotes) that Airbnb use is increasing the body corporates building reinstatement insurance premium, then arguably the additional premium, attributable to the ‘riskier’ use, could be passed on to the relevant lot owner/s.
Next, the answer that needs to be said… just like you can, your neighbours can use their lots for whatever they like, as long as that use does not break the law. Queensland Parliament has not empowered bodies corporate to tax their neighbours based on how they use their lots. NIMBY’ism is bad enough in local councils – it would be a nightmare in bodies corporate armed with a taxing power based on use. Strata in Queensland is ‘community’ title and community requires patience (for example when you are driving behind elderly neighbours who are entering or exiting the car park), consideration (for example, not practising on your saxophone when your shift work neighbour is sleeping), mutual respect (for example, each occupier abiding by the by-laws, for everyone’s mutual benefit) and especially tolerance… of other people living their lives, and doing the best they can.
This post appears in the March 2023 edition of The QLD Strata Magazine.
Michael Kleinschmidt
Stratum Legal
E: info@stratumlegal.com.au
P: 07 5406 1282
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