The law would also introduce a code of conduct for property owners which places responsibilities on them for anti-social behaviour from renters.

The proposal will be debated on Monday and if passed, the new law would then go out for public feedback before being introduced.

The final decision is expected to be made at the council's February meeting.

The proposed fee would bring about $20,000 into council coffers with about 80 properties rented out as holiday accommodation in the city.

The council said that based on a 40 per cent occupancy rate and $200 a night fee, owners of the average holiday rental would bring in about $29,200 a year, making the $400 fee not an excessive amount.

The move to charge property owners $400 was revived in this year's council budget after the initial proposal in 2021 was dumped after it sparked public backlash.

Operators such as Stayz had called for the council instead to work with the state government to bring in statewide regulations.

But the council this year instead decided to follow the lead of other popular holiday municipalities and introduce a charge.

QUOTE

The council plans to introduce the charge to address the inequality between registered visitor accommodation providers such as motels and hotels and those who provide accommodation through newer platforms.

The council said hotels and motels paid commercial rates and must meet strict registration requirements, but short-term rentals didn't.

The new fee is also aimed at ensuring owners of short-term rentals contribute to services, events, infrastructure and natural assets that support the visitor economy.

"The short-stay accommodation industry is not regulated, and many properties fall outside the definition of 'prescribed accommodation' that requires registration," the report in the council agenda says.

"These properties benefit from investment in the local visitor economy but do not directly contribute to that investment."

When the plan to charge $400 was revived in the council budget earlier this year it was labelled "disappointing" by Cr Ben Blain.

But now mayor Debbie Arnott said she had no problem with it.

Cr Blain had said he didn't think it would create equity between hotels/motels and short-term holiday rentals.

He instead called for the council to lobby the state and federal governments to incentivise long-term rentals for the city which would lead to less AirBnbs and create more housing for the city's workforce.

Investors using their properties as short-term holiday rentals have been partly blamed for the lack of long-term rentals in Warrnambool.

Businesses have been outspoken about their struggle to attract staff to the region to fill shortages because rentals were scarce.

Public consultation will take place during December and January.

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