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Thread: URA proposes safeguards for short-term home stays

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    Default URA proposes safeguards for short-term home stays

    URA proposes safeguards for short-term home stays

    Apr 17, 2018

    80% consent rule and 90-day annual rental cap among suggestions for condominiums

    Rachel Au-Yong
    Housing Correspondent


    Airbnb-style home-sharing is one step closer to becoming legal here, even as observers said the rules governing short-term stays proposed by the Urban Redevelopment Authority (URA) will present a barrier too high for many to cross.

    The URA outlined a list of safeguards in a long-awaited public consultation on short-term accommodation yesterday, making it clear it intends to closely regulate the practice.

    "We think it is possible to allow (them) in private residential properties, but subject to appropriate regulation and safeguards," National Development Minister Lawrence Wong wrote in a Facebook post yesterday, adding that the Government studied the matter for some time.

    It proposed a new category of short-term accommodation for private residential properties, which existing developments can adopt if they have the owners' consent and are registered as such.

    For condominiums governed by management committees, the URA is proposing that owners holding on to at least 80 per cent of the share value agree to the change of use. This is similar to the threshold for most properties seeking to sell en bloc.

    In addition, the URA said it would consider the impact of such short-term stays on the surrounding community. Condos, which have management committees and localised security measures, are more likely to be considered favourably for a change of use, especially if they are located in mixed-use areas like commercial centres or business parks, or sites with good traffic infrastructure.

    But it said most landed estates were unlikely to be approved for such stays because they are mostly located in areas with relatively quiet and narrow roads, and have no governance structures.

    Even for condos that pass the 80 per cent threshold, the authority wants to cap the annual rental at 90 days and have a maximum occupancy of six people per unit. The URA is also proposing that hosts register with the regulator and provide a record of guest details for each stay.

    The URA also said management committees can "put in place additional measures to manage potential disamenity", such as introducing by-laws with a lower rental cap than the proposed 90 days, or requiring home-sharing owners to pay additional maintenance fees for common areas and facilities.

    Platform operators like Airbnb and HomeAway could also be made to comply with a list of rules, including vetting postings and keeping track of the rental duration.

    The move received mixed reactions from home owners and experts, with some observers telling The Straits Times that the rules - especially the collective sale-like threshold - may mean most condos will reject such stays.

    Airbnb said it is "committed to reasonable solutions" and welcomed the chance to give feedback.

    The consultation ends on May 31.

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    Mixed reactions to URA proposal from home owners

    Apr 17, 2018

    Lee Wen-Yi
    Low De Wei


    The Urban Redevelopment Authority's (URA) proposal to allow short-term rental of condominium units via platforms like Airbnb has drawn mixed reactions.

    Yesterday's proposal will allow condo owners to rent out their properties for short-term stays if those holding at least 80 per cent of the development's share value agree to allow such rentals.

    Currently, such rentals are illegal, but numerous listings can still be found online.

    Citylife@Tampines resident Mabel Yeo, 32, said she has never experienced problems despite several such rentals in her estate, and that the impact could be bigger in more popular residences.

    Airbnb's head of public policy for South-east Asia Mich Goh said the move was an "important step for the locals who want to share their homes, and travellers who want a unique and authentic experience", but added that the company has to review the proposal more thoroughly.

    Several condo owners told The Straits Times they supported the proposal. Mrs Kelly Yeo, 45, a housewife living in Blossomvale along Bukit Timah Road, cited advantages, such as "creating an extra source of income, giving retirees a renewed sense of purpose and allowing for funds to be accrued without having to downgrade to a smaller unit".

    Mrs S.C. Yeo, 49, who lives at King Albert Park Residences, shared similarly positive views, but suggested that owners give notice to neighbours about incoming tenants and enforce rules to minimise inconvenience.

    Others were less pleased. Madam S.Y. Tan, a doctor in her 50s who lives at The Equatorial in Stevens Road, said: "We pay a premium price for the security and facilities of a condo in the first place. If my condo becomes an Airbnb (residence), there might be an increase in wear and tear. I would be insecure not knowing who my neighbour would be every day."

    Business manager Tong Foo Cheong, 55, who lives in Bukit Timah, highlighted the logistics involved in getting residents to vote as a potential problem, noting that "trying to get approval will involve all residents" and that many could be apathetic about the issue.

    Meanwhile, several landed property residents - who are likely to be excluded from URA's short-term rental proposal - had equally disparate views.

    "It should remain the right of the owner to do as he or she wishes," said Mr Nicholas Koh, 50, who lives in a detached house in Serangoon Gardens.

    However, a Jalan Kayu home owner, who wanted to be known only as Madam Ang, was strongly against allowing short-term stays, citing noise as a problem and saying that a constant flow of tenants would disrupt the community's "kampung spirit".

    "While some may say that they can earn more money from (renting out their properties on Airbnb), I think we should care and think about the feelings of other residents," added the 70-year-old, who rents out a part of her home long-term.

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    Proposed home-stay rules set the bar high for owners

    Rachel Au-Yong
    Housing Correspondent

    Apr 17, 2018

    Proposals seem to facilitate rentals, but requirements present hurdles


    After several years in the pipeline, a framework trying to balance Airbnb-style short-term stays and the associated disamenities is up for public consultation.

    The main takeaway from the Urban Redevelopment Authority's (URA) suggestions yesterday was a 90-day rental cap, as long as owners holding 80 per cent of the share value give the nod to a change in land use.

    At first glance, it appears to satiate both proponents and opponents of short-term stays, which, ranging from a few days to several weeks, are far below the current minimum requirement of three months.

    Advocates say short-term stays provide an affordable alternative to hotels, while giving home owners a chance to earn a side income. Critics argue that transient visitors threaten the security and peace in a development they call home.

    But even if the rules appear to strike a happy medium, the reality is that the fate of home owners looking to engage in short-term rentals is unlikely to change any time soon.

    For starters, the new regulations set a high bar: The 80 per cent threshold is the same for most estates seeking a collective sale bid. Seeing how numerous collective sale tussles have played out, this is no easy feat.

    Furthermore, in suburban areas where most developments are owner-occupied, owners are less likely to tolerate the frequent comings and goings of strangers.

    Ironically, it is in suburban areas that home-sharing sites have argued they have an edge, by offering more authentic accommodation: Airbnb has previously shared that 85 per cent of its listings are outside traditional tourist districts like Orchard and Marina Bay.

    Instead, the proposed rules are more likely to take off in central areas where owners have purchased investment properties and which are already mostly rented out. But this also means they will compete with hotels in the area - something hotel groups may object to.

    Another obstacle is the high level of compliance imposed on such platforms. The URA wants such operators to list only residential premises that have been registered for short-term use, and reject rental bookings if the suggested annual 90-day cap is exceeded. It may also need to help collect taxes from hosts using their websites.

    But just last week, it was reported that Paris city authorities were suing several sites for failing to remove ads of properties without a proper registration number. Airbnb pushed back, labelling the regulations in the French capital as "complex, confusing and more suited to professionals than individuals".

    It is unclear if the proposed Singapore rules are any less onerous, but TSMP Law Corporation's head of corporate real estate Jennifer Chia noted that this would be additional business costs to commercial operators and "for which they would need to crunch their numbers to see if it would still make Singapore a viable business platform".

    Even if all these hurdles are crossed, landlords and management councils may not find it worth the hassle.

    At first glance, the 90-day cap appears generous, given that Airbnb has reported that the average number of days a property is rented out here is 39 days.

    But with management councils given the leeway to shorten the cap, or impose higher maintenance fees on such hosts in their by-laws, many aspiring landlords may not find that the benefits outweigh the costs. Neither are management councils, which comprise volunteers, likely to take up the mantle of enforcing these rules.

    If the proposed rules become law, it would - on the face of it - appear to make room for short-term rentals here while at the same time creating an environment where they will struggle to thrive.


    Key proposals at a glance

    •Home owners with at least 80 per cent of the condominium's share value must agree to allow short-term stays.

    •Their approval is valid for a two-year period that must be renewed.

    •A unit can be rented for up to 90 days each year.

    •Owners must register with the URA before listing their homes for such stays. After getting approval, they must give the URA the personal particulars of guests for each stay. Such homes must have equipment like fire alarms.

    •Home-sharing websites must be licensed and ensure only registered homes are listed for rent, and reject bookings when the 90-day limit is exceeded.

    •Only condominiums are likely to be approved. Housing Board flats are still subject to a minimum stay of six months, while short-term stays for landed housing are likely to be rejected as they might cause disturbances to the neighbourhood.

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    Strict short-term rental rules likely to have limited impact

    Tue, Apr 17, 2018

    Janice Heng


    GIVEN the stringency of the newly-proposed regulations for the rental of homes for short-term stays, the impact on Singapore's leasing landscape will be limited, say property-market experts.

    The Urban Redevelopment Authority (URA) on Monday began a public consultation on its proposed framework for regulating short-term stays, which could affect home-sharing platforms such as Airbnb.

    Cushman & Wakefield Singapore head of research Christine Li, referring to the proposal that residents representing 80 per cent of the share value have to be in support of short-term rentals, said: "There might not be a significant impact on strata-titled properties due to the requirement for an 80 per cent consensus."

    Citing the proposed annual 90-day cap on short-term use, she added: "While the residential leasing landscape is weak at the moment, the framework is unlikely to alter the landscape significantly."

    Owners of private residential properties are currently barred from renting out their homes for less than three consecutive months, but the URA, after gathering public views on the matter in 2015, has worked with relevant agencies to develop a framework for regulating the practice.

    Released on Monday, the framework includes qualifying criteria for homes to be used as short-term accommodation, and requirements and conditions for homeowners. It also lays out the roles and responsibilities of stakeholders such as Management Corporations (MCSTs) and short-term stay platforms, in ensuring rentals keep to the rules.

    Each individual owner will have to register with the URA before listing the property for short stays.

    But first, property owners will have to agree to their properties coming under a new use category of "short-term accommodation".

    ERA Realty key executive officer Eugene Lim said this categorisation lets homeowners and investors make informed buying decisions.

    For non-strata-titled properties, the owner or owners can decide and apply to be registered.

    Referring to the requirement that the MCST for strata-titled properties (such as apartments and condominiums) get the support of at least 80 per cent of the share value, the URA said in its consultation document: "This is to ensure that a significant majority of owners... agree to the presence of short-term rental activities in their development."

    Valid for a two-year period, this endorsement will have to be renewed with an updated vote each time. Experts said this requirement would, in practice, limit the impact of allowing short-term rentals.

    Noting that it may be "extremely challenging" to obtain such consent, Withers KhattarWong senior associate Alex Toh suggested: "The character of an estate and the owners' interests and preference may differ from one estate to another - it is perhaps more appropriate for the owners of each individual estate to set their own approval requirements for short-term accommodation to be permitted within the estate."

    In properties with mainly owner-occupiers, homeowners' security concerns will make it hard to get support, said CBRE head of research for South-east Asia Desmond Sim.

    But the move is still significant for not "closing the door" entirely, he added, though he does not expect an impact on prices and demand.

    ERA's Mr Lim said it remains to be seen if the move will have a material impact on prices, but expects smaller units such as one- and two-bedders to see more buyer demand.

    The 80 per cent requirement and 90-day cap may be stringent enough to deter speculation, he added.

    While studies in other markets have found that Airbnb listings resulted in increased rents - which may lead to higher property prices - these markets may not have a 90-day cap, said Cushman and Wakefield's Ms Li.

    "In Singapore's case, it is plausible that owner-occupiers who value peace and privacy may shun strata-titled projects with short-term-accommodation-use, leading to lower prices in the development," she added.

    Airbnb's head of public policy for South-east Asia Mich Goh said the platform is "committed to reasonable solutions that will allow responsible home sharing to thrive in Singapore".

    Said Anton Stanish, vice-president for the Asia-Pacific at Expedia's Homeaway: "We support the need to fairly and effectively regulate the vacation rental industry and welcome the opportunity to collaborate on a path forward that addresses concerns and welcomes the vacation rental economy to Singapore."

    The URA's proposal includes a licensing framework, under which platform operators will have to pay taxes in Singapore and face responsibilities such as ensuring that only registered residences are listed for rent.

    Operators would have to take these additional business costs into account and see if Singapore remains a viable market, said TSMP Law Corporation partner and head of corporate real estate Jennifer Chia.

    On the likely impact on the hospitality sector, Royal Plaza on Scotts general manager Patrick Fiat said: "Any additional room available in Singapore will have a direct impact on the hotels business and occupancy."

    There is no longer the perception that Airbnb caters only to budget travellers, he said: "It is a platform which can cater to all budgets and types of travellers, similar to the segmentations of the hotels business."

    The public may view the proposals and share their views at https://ura.sg/sta and the portal of government feedback body Reach. The closing date for submission is May 31, 2018.

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    If the proposals go through, what are the penalties for flouting the rules? If there are no penalties, what is the point.

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    Quote Originally Posted by august View Post
    If the proposals go through, what are the penalties for flouting the rules? If there are no penalties, what is the point.
    https://www.straitstimes.com/singapo...under-new-laws

    I think this is more than enough.

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    Be prepared for more crimes, rapes in your condo.

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    Quote Originally Posted by thomastansb View Post
    Be prepared for more crimes, rapes in your condo.
    Low Crime Doesn't Mean No Crime.

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    Those condos that allow AirBnB soon Ah Loong can also sneak (as AirBnB customers) in to splash paint or faeces on your door and/or burn your door (because your other short-term tenant used your address to borrow money?)

    Quote Originally Posted by Arcachon View Post
    Low Crime Doesn't Mean No Crime.

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    Those condos that allow AirBnB soon Ah Loong can also sneak (as AirBnB customers) in to splash paint or faeces on your door and/or burn your door (because your other short-term tenant used your address to borrow money?)

    Quote Originally Posted by Arcachon View Post
    Low Crime Doesn't Mean No Crime.

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    Quote Originally Posted by teddybear View Post
    Those condos that allow AirBnB soon Ah Loong can also sneak (as AirBnB customers) in to splash paint or faeces on your door and/or burn your door (because your other short-term tenant used your address to borrow money?)
    Do you know what is the reward for the above from the 999 gang.

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    who is going to monitor the 90days cap ?

    unlike hotels, all 'guests' must register with their passport.
    who is going to register these short term tenants?

    there will be 'strangers' coming in and out everyday.

    The guards will have problem handling ...

    expect your swimming pool ... gym ... tennis courts to be packed .. over booked etc

    is it fair to assume that 'tourists' who books such short terms accomm as opposed to hotels are "cheapskates'?

    what kind of strangers are we inviting into our condo ?

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