Data is shared with authorities only when they have to... but if increased profits are on offer, then no problem.

Locating STA Properties

One of the challenges for regulators policing the sector is actually locating STA properties operating in their areas. Unless compelled by State legislation, such as in NSW and Tasmania, the online platforms keep the owner contact and property details confidential.

In areas with no State legislation in place, authorities are forced to adopt other means to locate STA properties operating in their area.Approaches such as dob- in schemes and data scraping have been used, with fines imposed for owners found operating without a licence.

Brisbane is an example of this situation, where the online platforms would not share data with authorities because they didn’t have to. This meant the council had to commit significant resources and effort into tracking down STA properties so they can police them.

Property Arbitrage

Interestingly, if we look at the US and Canada, the platforms are more than willing to share data with other parties if it increases their profits.

To grow their business Airbnb has been promoting rental arbitrage. Simply put, arbitrage is where a renter is permitted to sublease the property they have a lease on. Subleasing to the STA market enables a higher rental income – which is promoted as a means for people to afford to buy a property.

To increase their business in the US and Canada, Airbnb is cooperating with property owners to increase the supply of STA lettings. They even help building owners with access to data and tools - “including a customised dashboard to track any revenue share they earn and provides insight into hosting activity, for listings opted into the program”.

Seems if there is money to be made data sharing is not a problem.