Explainer: URA’s new law against short-term home rentals and how it affects B&B services

It’ll be even harder for folks to rent out their places on Airbnb right now, especially after a new legislation was passed in Parliament yesterday to enforce stricter rules against short-term home renters. 

The new law makes it illegal for home owners to rent out entire apartments and rooms for less than six months — this efficiently ensures that you’ll be breaking the law if you let folks book your houses on the popular homestay network. Most travellers (and staycation-loving locals) utilise Airbnb to search for rentals, usually for a couple of days or weeks. 

Never six months, though. On average, Airbnb guests usually stay only for a few nights — Berlin records an average of 6.3 nights, Amsterdam has an average of 3.9 nights, while in London, guests stay an average of 4.6 nights.

With the new law, Urban Redevelopment Authority (URA) officers will also have more power to investigate such cases where the regulations have been breached. They’ll have the right to enter premises for inspections (and even make forced entry), summon witnesses and suspects for interviews, and make demands for documents relevant to the case.

Oh, and convicted home owners may face a fine of up to $200,000 or a year in prison. 

 

“Protecting the residential nature”

Photo: Pixabay

According to the Urban Redevelopment Authority (URA), the stricter laws arrive on the back of increasing complaints and feedback by native residents regarding short-term rentals. URA received a total of 608 complaints last year — 61 percent more than what they received in 2015. 

The authorities concede that homeowners will be able to generate quick income from spaces they can spare, but warned that the majority homeowners are not happy with it as they “prefer to retain the residential nature of their properties”. 

“Allowing residences to be used for short stays leads to high turnovers of occupants, and gives rise to nuisance and safety concerns,” URA wrote on their website. “Most of us do prefer some familiarity with the people who live around our homes.”

 

Airbnb airs grievances

Speaking to Channel NewsAsia, Airbnb expressed their disappointment over the development. 

“We have repeatedly offered our support to relevant agencies to develop a framework that promotes responsible home-sharing. Nearly two years since the URA’s public consultation, it’s disappointing that the discussion has not moved forward,” Airbnb said. 

“More than 50 percent of hosts in Singapore are sharing their primary residence — the home in which they live. For a lot of Singaporeans, the opportunity to list their home on Airbnb — for an average of $5,000 per year — makes a real difference paying off the mortgage, electricity bills and other daily expenses.”

 

A compromise

Photo: Wikimedia Commons

What the Government has in mind is to create a new category of private homes that will be allowed for short-term rentals — one that can be applied to existing properties. National Development Minister Lawrence Wong stated that they’re looking into the option of new residential sites that may be designated specifically for the short-term rental properties. 

All hope is not lost for Airbnb, as the URA is considering allowing shorter rental periods than the current minimum of six months.

Wong also makes the case for necessity of security in neighbourhoods and estates. 

“Private residential properties should not be used for other purposes without planning approval, as there is a need to safeguard the living environment of residents in the neighbourhood,” he said. 




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