Go for it! Council Rules + BNB Hosting in Melbourne (A Complete Guide)
Last Updated: 25/10/2022
Contents:
- Starting an Airbnb in Melbourne
- Is Melbourne Airbnb friendly?
- Check which local council area your property is in.
- How to: Check your property’s zoning in Melbourne
- Allowed zoning types for bed and breakfast in Melbourne
- Home based businesses are called “home occupation”
- What is defined as “accommodation” for use in Melbourne’s zoning?
- What are the requirements for running a home-based business in Melbourne?
- What if my planned bed and breakfast’s size doesn’t fit into the 100m2 or one-third of the floor space area?
- Do you need council approval to open your own Airbnb in Melbourne?
- You need to register your bed and breakfast with your local Melbourne Council
- How To: Find Where to Apply for Licenses and Permits
- Opening an Airbnb as an Investor in Melbourne
- Melbourne Zoning Classifications That Don’t Require Planning Approval for Accommodation
- Get it in writing: Order An Official Planning Certificate
- Development Application Approval Criteria for Short Term Rental Accommodation In Melbourne
- What will I need for a material change of use application in Melbourne?
- If I submit a development application, will my neighbours be informed?
- Do I need any permits or licenses to open an Airbnb in Melbourne?
- Finding a Airbnb co-host in Melbourne
Starting an Airbnb in Melbourne is easy!
Pretty much everyone loves Melbourne. Especially tourists.
And what’s not to love? It was voted the World’s most livable city from 2011 to 2017. Melbourne is also recognized as the heart of Australia’s culture, with art, live music, fine food and nightlife.
This makes it a must-visit for many domestic and international tourists alike.
While the impacts of COVID-19 on Melbourne’s tourism economy have been significant, with spending down 34%, and visitors down 21% in 2021. Having said that, in all likelihood these figures will bounce back, once the world is free.
Furthermore, total spending for both domestic and international tourism in Victoria is forecast to reach $49.6 billion by 2028-29, which is huge!
Clearly, owning your own short term rental accommodation in Melbourne can be quite the lucrative asset for those who are willing to have a go.
So, will you be in position to take advantage of the upcoming tourism boom?
Is Melbourne Airbnb friendly?
On the whole, Melbourne is much more Airbnb friendly than many other parts of the country.
The Melbourne City Council has made it much simple to get into being a host when compared to other areas around Australia.
Of course, your mileage may vary, as every local council generally has similar but not alwayss the same rules.
If your property is in a stata arrangement, you’ll still need to be aware of the body corporate by-laws and how they might limit your operation.
Check which local council area your property is in.
Finding out where your property is located and what local council governs the area is one of the first steps needed to determine whether or not you can open an Airbnb as a home based business.
There are 31 local councils in the Melbourne metropolitan area, and 79 local councils in the state of Victoria!
The easiest way to find out which local council area your property is in is to use the Vic Councils Map. It’s an interactive map that is very easy to use. Check it out – Vic Councils Map
You can click on the map to visit any council’s website, as well as find their contact information.
How to: Check your property’s zoning in Melbourne
The quickest and easiest way to use the VicPlan interactive planning map.
- Go to the VicPlan interactive map.
- Look up your address, or click around the map.
- Use the left “Identify Results” window to view Victorian to view Victorian Planning Provisions and Local Planning Provisions information.
Top Tip: The VicPlan map also has a “Definition Plan” feature that will generate a full report for a given address or parcel that includes zoning and overlay information, and then email it to you. Find it in the Tools section in the top bar menu.
You can also find some information using these pages –
Other ways to find out if you need a planning permit:
- By letter to the Planning Team of your local council, who will be able to advise you on whether a planning permit is required for your property.
- You can also purchase a Planning Certificate from Land Victoria.
- Planning maps are also able to be viewed at the Melbourne Town Hall Administration Building, between the hours of 7.30am and 5pm, Monday to Friday.
- You can also request a pre-application appointment with a planning officer by emailing [email protected].
Allowed zoning types for bed and breakfast in Melbourne
Does not require planning approval for a home occupation bed and breakfast :
- Neighborhood Residential Zone (NRZ)
- General Residential Zone (GRZ, R1Z, R2Z or R3Z)
- Residential Growth Zone (RGZ)
- Mixed Use Zone (MUZ)
- Schedule 2 to the Comprehensive Development Zone (CDZ2)
- Schedule 3 to the Comprehensive Development Zone (CDZ3)
- Schedule 4 to the Comprehensive Development Zone (CDZ4)
- Schedule 1 to clause 37.04 Capital City Zone
- Schedule 2 to clause 37.04 Capital City Zone
- Schedule 3 to clause 37.04 Capital City Zone
- Schedule 4 to clause 37.04 Capital City Zone
- Schedule 5 to the Capital City Zone
- Schedule 6 to the Capital City Zone
- Schedule 7 to clause 37.04 of the Capital City Zone
- Schedule 1 to the Docklands Zone
- Schedule 2 to the Docklands Zone
- Schedule 3 to the Docklands Zone
- Schedule 4 to the Docklands Zone
- Schedule 5 to the Docklands Zone
- Schedule 6 to the Docklands Zone
Requires planning approval for accommodation:
- Commercial 1 Zone (B1Z, B2Z, B5Z or C1Z)
- Schedule 1 of Special Use Zone (SUZ1)
- Special Use Zones (SUZ)
- Comprehensive Development Zone CDZ1, CDZ
Home based businesses are called “home occupation”
Something to keep in mind here when looking for information.
In other states, running a home based business is called just that, but in Victoria, it can be called a “home occupation” in official council regulations, legislation and documentation.
What is defined as “accommodation” for use in Melbourne’s zoning?
There are several terms that are relevant to bed and breakfast business owners.
Zoning documents use “accommodation”, “bed and breakfast”, and also reference “dwelling”.
Accommodation: Land used to accommodate persons.
Bed and breakfast: A dwelling used, by a resident of the Dwelling, to provide accommodation for persons away from their normal place of residence. Included in: dwelling.
Dwelling: A building used as a self-contained residence which must include:
- a) a kitchen sink;
- b) food preparation facilities;
- c) a bath or shower; and
- d) a toilet and wash basin.
It includes outbuildings and works
normal to a dwelling.
Examples: bed and breakfast or caretakers house
Included in: Accommodation
The Key Difference: So, to explain, a “bed and breakfast” business is automatically defined as “accommodation” when there is no resident living on the premises.
Therefore, it can’t be a home occupation business.
You can find all of the definitions in section 73.03 Land Use Terms of the Victorian Planning Scheme. Or use the new interactive Melbourne Planning Scheme website.
What are the requirements for running a home-based business in Melbourne?
There are some general requirements for running a home occupation business in Melbourne, which we’ll list below. However, not all of them apply to a bed and breakfast, but we will list them anyway.
Section VPP 52.11 of the Melbourne City Plan sets out the following requirements to be met:
- You will need to use a dwelling on the property as your permanent place of residence.
- It does not need to be in the same building.
- No more than 2 staff members who do not live in the dwelling can work on the property.
- The net floor area used for the bed and breakfast must not exceed either 100 square meters, or one-third of the net floor area of the dwelling – whichever one is less.
- This includes out buildings and other floor space on the property.
- The business may not place any extra load on the utilities (water and power) that is more than what would normally be required.
- The bed and breakfast must not impact the amenity of the area it is located in. Essentially it must blend in as if it wasn’t there. Requirements include:
- Changes to the building, works or materials.
- Parking of visitor or staff vehicles.
- No deliveries outside of normal business hours (1 per day).
- No electrical interference.
- No storage or hazardous materials.
- No emissions.
- No motor vehicle work may be carried out for financial gain.
- Only 1 commercial vehicle on the site at any time.
- No goods for sale other than those produced on the premises.
- All goods must be stored within a building.
See section VPP 52.11 Home Based Business
You can also find more information by searching for “Home based business requirements – City of Melbourne”
What if my planned bed and breakfast’s size doesn’t fit into the 100m2 or one-third of the floor space area?
Relax, there is always a way.
If you satisfy all of these requirements, but want to offer more space to your guests, and your bed and breakfast operation has a floor area not exceeding 200 square metres or more than one-third of the net floor area of the dwelling, then you will need to apply for a home-based business permit.
When considering your permit’s approval, your local Council will consider:
- Whether you need any additional car parks.
- The effect of vehicle parking on the amenity of the street.
- Where your property is located, and whether a bed and breakfast fits into the surrounding area.
- Whether there is any need for screening or landscaping to create sound barriers and privacy for neighbouring properties.
Do you need council approval to open a bed and breakfast in Melbourne?
The good news is that Melbourne actually has some very fair and easy regulations around running a bed and breakfast as a home-based business.
If you can stick to the following requirements, and the size and scale of your bed and breakfast business fits into the allowed limits, then you do not need council approval.
- You must be a resident of the property.
- No more than 10 guests at once.
- No more than 3 employees on the property.
- No more than 1 company vehicle at any one time.
- Fit into the space limits of either one-third of the total floor space on the property, or 100m2, whichever is smaller.
- If you need more space, and are under 200m2, then you will need a home-based business permit from your local council.
You need to register your bed and breakfast with your local Melbourne Council
Don’t forget that you need to register and get your rental license. Victoria has some strict regulations for bed and breakfast owners to comply with, or face some unattractive fines.
You will need to apply for a Registration of Prescribed Accommodation with your local council to comply with the Public Health and Wellbeing Regulations Act of 2009.
This piece of legislation is designed to minimise public health risks in rooming accommodation by ensuring that proprietors keep their property up to standard. The legislation does this by:
- Regulating the minimum size of a room that can be used for accommodation at less than 7.5 square metres.
- Limiting the size of an area that can be used for certain amounts of guests and providing times which govern these limits.
- Preventing overcrowding relative to available square meterage of floor space.
- Protecting cultural heritage.
- Requiring that the proprietor maintains satisfactory standards for cleanliness, hygiene, and states of repair.
- Ensuring that the premises are cleaned after each guest leaves and before another guest arrives.
- That the linen is changed at least once per week, and is washed after the accommodation is vacated before another guest arrives.
- All water provided must be a continuous and adequate supply to amenities, such as bathrooms, laundries, kitchens.
- Drinking water must be adequate for human consumption and in continuous supply.
- All waste water and sewerage must be discharged into the reticulated sewage system, or a suitable wastewater treatment system.
- Ensure rubbish is taken out and receptacles are regularly cleaned.
- That the property has at least one bathroom, with wash basin, toilet, and one bath or shower per 10 people.
- The proprietor keeps a record of who has stayed, with full contact details and dates.
- That any signage accurately reflects the type of approval given to the property.
- Lastly, that all proprietors maintain their registration while operating an accommodation business, which includes paying yearly registration renewal fees.
To find the latest version click here – Public Health and Wellbeing (Prescribed Accommodation) Regulations 2020
As part of your application for prescribed accommodation, you’ll need to include a scaled drawing of your property at 1:100, details of how each room will be used, and pay the application fees, which includes an inspection.
To find who to apply to, you can use the Vic Councils Map, do an online search for your council’s name and “registration of prescribed accommodation”.
The easiest way by far is to use ABLIS – Australian Business License Information Service’s interactive tool, which you can fill out and it will tell you exactly what licenses you need and where to apply for them.
If you are planning to serve your guests food, then you will also need a Registration of Food Premises license, which complies with the Victorian Food Act of 1984.
Where do I apply for licenses and permits?
When setting up your bed and breakfast business, you can use the Australian Business License Information Service online tool.
Simply fill in the questions and it will give you a report on all of the licenses, permits and registrations you need, as well as the forms and contact details of the relevant authorities.
It’s a very handy tool! Search for it using “ABLIS”.
An easily recognisable scene from Melbourne – Flinders Street Station and a tram.
Opening an Airbnb as an Investor in Melbourne
As with most locations around Australia, if you are planning to start a short term rental accommodation business as an investor, instead of under the home occupation regulations, then you’ll need to approach the process differently.
Knowing where you stand with your requirements for planning and development approval is therefore key to success.
Fortunately, the good news is that Melbourne works a little bit differently to the rest of the country. Which in this case is entirely a good thing.
Now, we’ll step you through how this works.
Generally, you do not need approval for an accommodation business in Melbourne, unless you do not
Firstly, you need to check your zoning, which will help you understand whether or not your property is located within a zone that requires planning permission.
It’s also important to remember the difference between accommodation and a bed and breakfast. Generally, a bed and breakfasts are operated by owner-occupiers, while accommodation is a business that does not have the owner living at the premises.
Then you need to use the City Plan to find out your Zoning, and compare it to the list below.
Generally, if your property is in a residential zone, then you do not need to submit a material change of use application.
However, if your property is in one of the zones where a permit is not required, then you won’t need to get planning approval.
Melbourne Zoning Classifications That Don’t Require Planning Approval for Accommodation
Requires planning approval for bed and breakfast and accommodation:
- Schedule 4 to the Comprehensive Development Zone (CDZ4)
Does not require planning approval for bed and breakfast (not accommodation):
- Mixed Use Zone (MUZ)
- Residential Growth Zone (RGZ)
- General Residential Zone (GRZ, R1Z, R2Z or R3Z)
- Neighbourhood Residential Zone (NRZ)
Requires planning approval for accommodation (not bed and breakfast):
- Neighbourhood Residential Zone (NRZ)
- General Residential Zone (GRZ, R1Z, R2Z or R3Z)
- Residential Growth Zone (RGZ)
- Mixed Use Zone (MUZ)
- Schedule 3 to the Comprehensive Development Zone (CDZ3)
Schedule 4 to the Comprehensive Development Zone (CDZ4) - Schedule 6 to the Capital City Zone
- Schedule 3 to the Comprehensive Development Zone (CDZ3)
- Schedule 4 to the Comprehensive Development Zone (CDZ4)
Possible for home occupation, but not specifically bed and breakfast:
- Schedule 2 to the Docklands Zone
- Schedule 3 to the Docklands Zone
- Schedule 4 to the Docklands Zone
- Schedule 5 to the Docklands Zone
- Schedule 6 to the Docklands Zone
Does not require planning approval for accommodation (not bed and breakfast):
- Schedule 1 to clause 37.04 Capital City Zone
- Schedule 2 to clause 37.04 Capital City Zone
- Schedule 3 to clause 37.04 Capital City Zone
- Schedule 4 to clause 37.04 Capital City Zone
- Schedule 5 to the Capital City Zone
- Schedule 7 to clause 37.04 of the Capital City Zone
- Commercial 1 Zone (B1Z, B2Z, B5Z or C1Z)
- Schedule 2 of Special Use Zone (SUZ1)
- Schedule 2 to the Comprehensive Development Zone (CDZ2)
Another very easy way to find information on Melbourne’s zoning is to use the new Melbourne Planning Scheme website, which is a digital resource that is slowly being rolled out and should be completed by 2022.
Get it in writing: Order An Official Planning Certificate
A planning certificate is a great way to know exactly what zoning, overlays, proposed amendments, and planning controls that apply to a property.
They are often used in the process of buying and selling land, but they can also be used by savvy BNB operators like ourselves.
Ordering a planning certificate is quite simple, just use the online LANDATA® Titles, Property Certificates and Crown Land Status Reports.
It is important to note that planning certificates are not a way to determine zoning or overlay boundaries, or details of any other specific controls. You should still contact your local council’s planning department for clarification.
Development Application Approval Criteria for Short Term Rental Accommodation In Melbourne
If you are planning to build a dedicated building, are wanting to alter a building that already exists, or want to change the use of a current lot, then you will need to obtain planning approval by submitting a material change of use development application with your local council.
Your town planner will be able to inform you about the specific criteria which your application will be assessed against.
Some of the criteria can be found in Section 65.01 Approval Of An Application Or Plan of the Melbourne Planning Scheme.
What will I need for a material change of use application in Melbourne?
When lodging your application, you need to include the following documents:
- A copy of your Certificate Of Title that was obtained no more than 30 days prior to your application. You can get your certificate from LANDATA
- If your development will exceed costs of $1 million, you will need to obtain a valid Metropolitan Planning Levy Certificate.
- A digitised version of your development plans.
Once they have received your application, the Council will then send you your reference number and details for paying your application fee. You can check the Melbourne Planning and Building Fee Schedule here.
Your application for material change of use will also need to include:
- A carefully written report that details the existing and proposed use(s), which contains any of the following applicable information:
- Proposed hours of operation
- The numbers of staff/employees/practitioners that will be on the premises during operation.
- The numbers of seats required for the proposed use(s).
- Which type of liquor licence will be needed.
- Details on the number and location of car parking spaces, proposed site access arrangements.
- A supporting statement justifying a reduction or the waiving of the statutory car parking requirements.
- Detailed site plans clearly showing the location of any building(s) on the site, with internal details of the building(s) and information regarding the total floor area to be occupied by the proposed uses(s).
- Information on how any goods will be transported to the site, used and stored.
- Details of the consideration of the Disability (Access to Premises-Buildings) Standards 2010.
There is also the chance that the planning officer at your local council may request some different or extra information, so be prepared to obtain it if asked.
We recommend you get some help with this, so look for a good town planner in Melbourne.
There are tonnes of things to do in Melbourne, from nightlife, food, fashion, and even Luna Park – shot by photographer Pat Whelen
If I submit a development application, will my neighbours be informed?
Yes, all current development applications are advertised to the public and opened to submission whenever a development may cause detriment.
This is called “giving notice” and allows anyone the chance to make a formal objection.
View all of the current development applications here – Melbourne planning permit register search results.
Do I need any permits or licenses to open an Airbnb in Melbourne?
Yes, you generally always need some licenses and permits to open your own short term rental accommodation business, no matter where you are.
The easiest way is to fill in the The Australian Business Licence and Information Service (ABLIS) tool, which will tell you exactly which permits and licenses you need for your location and intended business operation.
Head over to https://ablis.business.gov.au/ to use it. Examples of permits and licenses needed for a home occupation bed and breakfast include:
- Certificate of Compliance for your building works.
- Registration of Prescribed Accommodation
- Swimming Pool or Spa Registration
- Permit to Place Signs
- Certificate of Acceptance or Fire Safety System Inspection Certificate
For a material change of use development application, search for “Planning Permit – City of Melbourne – Victoria”
You need a Melbourne Airbnb Co-host!
HoliHome is soon to move to our new home in Melbourne, and we can’t wait!
Our range of Airbnb co-hosting services will be available across the whole or Melbourne.
We’ll also continue to offer our property management services in Brisbane and the Gold Coast.
If you’d like our help to make your hosting life easier, and give you more time for the ones that matter, then please reach out.
More from the HoliHome Blog
It’s Possible! Gold Coast: Regulation + BNB Hosting (A Complete Guide)
Should You Aim to be Fully Booked? Occupancy Vs Profits
Get started now! Brisbane: Council Rules & BNB Hosting (The Best Guide)
Go for it! Council Rules + BNB Hosting in Melbourne (A Complete Guide)
When Should You Start an Airbnb? Well, it Depends.
