Some councillors at a West Australian tourist destination have tried to restrict short-term rentals to affluent areas along the coast, reserving surrounding suburbs for permanent residents.
But the overall City of Albany council last night voted down a motion that would have deemed areas hugging the shoreline such as Middleton Beach and Emu Point as "suitable" locations for hosting short-term accommodation.
According to the Real Estate Institute WA website, houses in those two destinations are worth on average $925,000 and $1.3 million respectively.
Inner-city suburbs such as Yakamia, Lockyer and Spencer Park — where house prices average $386,666 — were left out of the proposed green light area.
Three people including Albany mayor Dennis Wellington supported the motion while six councillors voiced their objections.
Those in favour argued the proposal was in line with local government laws and bushfire planning requirements.
Council documents stated that limiting short-term rentals to selected areas would minimise adverse impacts on neighbours and ensure locations were kept for permanent residential purposes.
It was noted that motels, chalets, tourism developments and caravan parks were not included in the strategy.
Under the proposal, which was defeated, property owners outside the designated area could have applied for an exemption.
Airbnb against the idea
The policy seemed to target Airbnb properties, with the multinational company submitting the only written objection to the policy.
Airbnb is a platform where people can rent rooms or houses at a nightly rate as opposed to weekly.
It can monetise investment properties at a greater rate than a normal rental would be capable of earning, but it often means there are fewer rentals available for residents.
Two members of the public, including an anaesthetist, spoke against the item at Tuesday's council meeting.
One owned a property at Goode Beach and said she wanted to showcase the region without having to cut through red tape.
The second resident said 30 per cent of people using her accommodation were not tourists, but contractors and people working in the local community.
She argued the council should not have a blanket rule but instead introduce a case-by-case policy.
Councillors engage in heated debate
Councillor Robert Sutton was among those who argued people should be able to do what they wanted with their properties.
He said the choice belonged to the people who had made the investment.
"What we can't do is take more freedoms away from the ratepayers," Cr Sutton said.
"We can't fish … or camp at the beach … how many more freedoms do we need taken away?"
Councillor Chris Thomson described himself as a "massive supporter" of the proposal.
He said it would cluster compatible property uses together while ticking all the state bushfire requirements.
"No planning is good planning … that sort of stuff was disproved 200 years ago," Cr Thomson said.
Asked to elaborate on his comment following the meeting, Cr Thomson said it was referring to philosopher John Stuart Mill and liberalism.
Councillor Thomas Brough was against the motion and said bureaucratic hurdles were punishing people for having real estate on the "wrong side of the tracks".
He said one part of the city was the "chosen land" and a line had been drawn around the CBD, elevating "lucrative real estate".
He urged the council to refrain from "killing" entrepreneurial spirit.
The proposal will now be reconsidered and amended.
