A year after finding a rental property close to central Hobart, Zac Lewin and his four housemates are dreading having to start looking for somewhere else to live.
Their landlord's application to turn their West Hobart home into an Airbnb was approved by Hobart City Council on Wednesday night – the 42nd entire dwelling to become short-stay accommodation this year, and 129th since July 1.
And while the council has tried, since December 2020, to find a way under Tasmania's planning laws to restrict new short-stay accommodation conversions, it is too late for Mr Lewin.
"I have a lot of friends who are trying to get into the rentals, and they're struggling. It takes a while, so now I'm going to have to try to join that boat too," he said.
"There's five of us, three of us are students, two of us have full-time jobs, but we're still a little uncertain now, trying to find a new place."
Their $850-a-week lease ends in June, and Mr Lewin – a University of Tasmania honours graduate in disease ecology – said it was "a little scary" having to start the search for a new rental.
"I think there should be more control, from maybe a legislative way," he said.
"We need to have a certain amount of rentals, or just housing available for people to live in the city. That should be controlled."
The property owner chose to convert the property into short-stay accommodation so they could live there while building their new home elsewhere, and then for family, friends and short-stay visitors to have access to it afterwards.
Residents fear 'short-stay creep'
The application received 16 objections, including from nearby residents who were concerned at the "creep of short stay" up the street.
It was once a quiet neighbourhood but became increasingly attractive for accommodation as the nearby North Hobart restaurant strip grew in popularity.
Hobart's rental vacancy rate has also remained low, however, at 0.9 per cent, with 2.5 per cent considered appropriate for renters to find somewhere to live.
Hobart councillors wanted to reject the short-stay conversion, but once again voiced frustration at having their "hands tied" by the state's planning laws, which do not allow for a rejection based on housing supply issues.
The only option was to reject it based on a lack of parking, but a council director Neil Noye said this would fail.
"There is very little to no ability to defend a refusal on the basis of car parking," he said.
No rejections have even reached the state's planning appeals tribunal as when the owner appeals, the rejections are ultimately overturned in mediation.
Councillor Simon Behrakis said the council could not attempt a full merits-based planning appeal case, even if it wanted to.
"There isn't a single planning lawyer in the state of Tasmania who believes there's enough merit in those cases to take on the job," he said.
Bid to stem short-stay conversions
The Hobart council has grown increasingly concerned at the proliferation of short-stay accommodation in recent years.
It now has the highest short-stay density of any Australian capital city.
In December 2020, the council approved a policy of stopping new whole-of-dwelling short-stay conversions – it just needed to find a way to implement the policy.
It asked then-planning minister Roger Jaensch for advice, which the council then proceeded with.
But in February, its attempt was rejected in the Tasmanian Planning Commission, as it was "inconsistent" with Planning Directive 6 – a state planning law that regulates short stay.
'Lever' of rate rises could be next
The council and the state government blamed each other for the impasse, with Planning Minister Michael Ferguson saying the council would have more options if it had signed up to the Tasmanian Planning Scheme already.
But Councillor Ben Lohberger said Mr Ferguson had the power to instantly allow Hobart to restrict short stay.
"I do believe the planning minister can address this problem with the stroke of a pen, but refuses to do so," he said.
The council is seeking renewed advice on how it could restrict short stay under current planning laws.
Councillor Ryan Posselt said increasing council rates on short stay is being considered, ahead of the new ratings year from July 1.
"Differential rating is the only lever we've got," he said.
This could see the owners of short-stay accommodation be charged between five and 10 times the rates of general residential owners.
Mr Posselt said it was intended to be a deterrent.
'Mini hotels' destroying area: councillor
The Tasmanian government believes short stay accommodation is not a major factor in the state's housing crisis.
Premier Jeremy Rockliff said the government is focused on increasing supply.
"What will work positively, and have a positive impact on the housing situation – which is a challenge in every state and territory across the nation – will be that supply side," he said.
"The short-stay accommodation is a small part of that.
"I'm not going to comment on any individual circumstances except to say that we have considerable investment on the table, plans in action, and workforce development … to build and construct homes for Tasmanians, including public housing."
But Hobart deputy mayor Helen Burnet — who lives a few streets over from the West Hobart Airbnb conversion — said this was not going far enough to give councils discretion.
"My neighbourhood is being destroyed, carved out into a series of mini-hotels," she said.
