NSW neighbours win holiday rental ban

GOSFORD Council has failed its constituents by not resolving the issue of an illegal holiday house rental in Terrigal, a judge has ruled.

At the Land and Environment Court on Thursday, Justice Rachael Ann Pepper ruled that Rhonda Bennic's short-term holiday letting of her 6-bedroom house was unlawful because the property is located in a 2A residential zone.

Her next-door neighbours John and Rosemary Dobrohotoff told the court that the house, which can sleep up to a dozen people, had regularly been used for parties and bucks' nights involving strippers and escorts, with noise and anti-social behaviour continuing until the early hours.

The house has been used for short-term holiday rentals since 2006, and Ms Bennic has owned it since 2011.

Justice Pepper said Gosford Council had failed to resolve the issue locally.

"In my opinion, it amounts to an effective abrogation of the council of its duties," she said.

"By leaving it to the court to determine this important issue, the council has failed to do one of its core functions and has failed its constituents."

She said letting the house to short-term guests was prohibited under the current zoning laws.

"This decision may cause a degree of inconvenience for property owners" in the area, she said.

Mrs Dobrohotoff told the court she grew increasingly anxious as weekends and holidays drew near, and often took her family away from their home at those times to avoid the disturbance.

In her ruling, Justice Pepper said the property did not qualify as a dwelling as it was not being occupied in the same way a family or another group would live in it.

But she found that the fault was not entirely Ms Bennic's, as she had never been told by Gosford Council that it was illegal to rent out her property.

She awarded the Dobrohotoffs an injunction preventing the house from being rented out for periods of less than three months, but delayed it until the end of June so as not to impose unnecessary financial hardship on Ms Bennic.

Mr Dobrohotoff told reporters outside the court he welcomed the finding.

"We are pleased to have this outcome, which will have positive effects on the health and welfare of our family, as well as the other families in our neighbourhood," he said.

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