Serviced Strata Apartment Dramas in Docklands

The conflict over serviced strata apartments (residential apartments used for short-term stays by tourists and business travellers) has recently been upscaled in Docklands, Victoria.


Wherever, serviced apartments operate there are potential problems arising from incompatible uses between tourists and residents, inadequate facilities in the buildings for operators, damage and disruption by some tourists, security breaches in buildings and 'sharp' business practices by over-zealous operators.  Owner residents are opposed to the short term use of apartment, but investors like the higher returns.  


So, the City of Melbourne has been taking action to try to limit serviced apartments in Docklands by issuing building orders against 26 owners in the Watergate tower requiring them not rent their apartments for less than 30 days at a time.  Now the owners have appealed the orders to the Building Appeal Board and a 'test case' is underway.

The council is relying building code as the basis of its actions.  And the owners and serviced apartment operators say they have beaten similar attempts to stop them under planning laws, but this is the first time they have been threatened by the building regulations.

And, the actions have prompted serviced apartment operators to form a new group called Victorian Holiday and Short Stay Industry Group (VicShortStay) who is now advocating self-regulation to ensure that serviced apartment operators conduct business in appropriate ways.  Which makes sense but is probably exactly what the serviced apartment opponents don't want to happen.

You can read more about Docklands test case in this article in Dockland News.  

And, it will be interesting to see how this develops and ends up as it affects many buildings, owners, strata committees, strata managers, building managers and serviced apartment operators all around Australia.

Francesco ....