How Can Byron Shire Short-Term Rental Rules Affect an Accommodation Business Sale?

When an accommodation or on-site management business is offered for sale around Byron Bay and the Northern Rivers, the buyer needs to understand not only how the business has performed historically, but whether the accommodation it manages can continue operating in the same way.

That distinction has become particularly important in Byron Shire.

Historical Income Does Not Automatically Describe Future Operating Rights

From 23 September 2024, non-hosted short-term rental accommodation using the exempt development pathway is generally limited to 60 days per year across most of the Byron Shire local government area. Two mapped precincts in and around Byron Bay town centre and Brunswick Heads allow non-hosted STRA for up to 365 days. NSW Planning

That means two properties within the broader Byron market can potentially have quite different short-term accommodation positions.

For a seller, it is important not to assume that historical booking performance alone tells a buyer what can lawfully occur in the future.

Check Which Properties Actually Support the Business

If the business manages a portfolio of holiday properties, identify where those properties are situated and what operating arrangements apply.

Residential properties being used as STRA in NSW generally need to be registered through the NSW Planning Portal before being advertised or offered for short-term rental. Registered properties must also meet applicable fire and safety requirements and comply with the mandatory industry code of conduct. Service NSW

A seller does not need to become the buyer's planning adviser, but the portfolio should be presented accurately.

Avoid Marketing Future Income as Certain

A buyer may examine previous booking revenue, commissions and management income, but previous financial performance should not automatically be presented as guaranteed future performance.

If regulatory settings, owner participation or property availability affect how the business can operate, explain those matters clearly.

Australian Consumer Law requires claims made by businesses to be truthful, accurate and based on reasonable grounds. ACCC

This is particularly relevant when marketing an accommodation business around projected income or expansion opportunities.

Separate Existing Operations From Growth Potential

A seller may believe additional properties could join the portfolio.

That may be genuine potential, but it should be presented separately from the existing verified business.

A buyer should be able to distinguish between current appointments and income, historical trading results, and opportunities that have not yet been secured.

That creates a much clearer commercial story.

Due Diligence Should Include the Regulatory Position

Australian Government guidance recommends that buyers of existing businesses examine financial records, operations, licences, permits and legal documents before proceeding. business.gov.au

For a Byron Bay accommodation management business, planning and short-term rental requirements may therefore form part of that investigation.

Frequently Asked Questions

Does the 60-day rule apply everywhere in Byron Shire?
No. The NSW Government identifies two mapped 365-day precincts around Byron Bay town centre and Brunswick Heads. The position of individual properties should be checked rather than assumed. NSW Planning

Should sellers obtain planning advice before marketing?
Where the property's lawful use or STRA position is material to the business being sold, appropriate planning and legal advice can help ensure the opportunity is described accurately.

Selling an Accommodation Business in Byron Bay or the Northern Rivers?

Norton’s Resort Brokers can assist owners with preparing the business information, positioning the opportunity and approaching relevant accommodation-business buyers.

Steven Norton — 0488 496 277
Lawrence Norton — 0415 279 807
Email — Nortons.re@gmail.com

Disclaimer: General information only. It is not legal, planning, licensing, financial, accounting or investment advice. Short-term rental requirements and property circumstances vary. Obtain appropriately qualified advice.