2021-10-12 P&E Agenda - Item 2 - Attachment 6 - Cost Benefit Analysis

COST BENEFIT ASSESSMENT – PROPOSED LOCAL LAW AMENDMENT: SHORT STAY
LETTING & HOME HOSTED ACCOMMODATION

      and collection of rubbish, the noise and anti-social behaviour of guests, and the behaviour of their pets.”
      (Parliament of Western Australia, 2019, p.59)

•     Economic Policy Institute (2019) outlines that the economic costs of short-term rental services likely outweigh
      the benefits and indicates that absentee owners have less incentive to make sure their renters are respectful
      of neighbours or to prevent an excessive number of people occupying their property, with impacts likely worse
      for short-term rentals. It noted that as a consequence of these impacts, there has been increasing prevalence
      of zoning laws banning short-term travel accommodation in residential neighbourhoods.

•     Nieuwland, S. & Melik (2020) indicates that local residents worldwide have started to complain about negative
      impacts of short-term letting, with nuisances ranging from noise caused by visitors (e.g. loud parties and
      drunken behaviour) to issues with traffic, parking and waste management, and safety concerns when strangers
      enter their neighbourhoods and buildings.


    IMPACT SUMMARY:

    There is a significant impact on traditional residential neighbourhoods from the increased level and type of
    activity associated with short stay accommodation, much of which is focussed on noise disturbances, amenity,
    safety and security. Placing effective local controls on activity and behaviour will reduce the extent and type of
    adverse effects placed on permanent residents in locations where short stay letting and home hosted
    accommodation are provided.


4.2          POTENTIAL BENEFICIARIES
Council identified the number of potentially affected residential properties from noise and other disturbances
located within 50 metres of short stay let premises as 10,610 unique properties, noting that some of these properties
are impacted by multiple short stay let properties and may have higher levels of disturbance than properties
impacted by a single short stay let premises.

The 2016 Census, as reported by the Australian Bureau of Statistics, highlights that there were 2.5 persons per
household on average across Noosa Shire. As such, the total potentially impacted population of permanent
residents in Noosa Shire from the adverse effects of short stay accommodation totals 26,525 persons.


    IMPACT SUMMARY:

    The potential beneficiaries within Noosa Shire from the proposed local law include 10,610 residential properties
    consisting of an estimated 26,525 persons.


4.3          RESIDENT HEALTH AND RESIDENTIAL AMENITY

4.3.1        Definition
For the purposes of this assessment, residential amenity refers to the ability for residents to enjoy their homes in a
peaceful manner with feelings of community and safety. Residential homes should allow their occupants the ability
to wind down, relax and sleep with minimal disturbances. Such residential amenity maximises resident health and
wellbeing.

4.3.2        The Issue
Guests of short stay letting properties may be less concerned with maintaining good neighbourly relations, resulting
in negative impacts on residential amenity such as increased noise levels, traffic and waste.

Excess noise is unpleasant as it disturbs and interferes with day-to-day activities and routines and as such can
significantly impact the quality of life and health and wellbeing of affected individuals. Section 4.1 highlights the
significant adverse effects likely to result from the type of activity occurring at short stay accommodation premises
within residential neighbourhoods.



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