TWEED'S bustling tourism industry is about to be flipped on its head as the NSW Government hands over control of short-term holiday letting to councils.

Part of the new policy will allow councils to lower the limit of days a person can host their property on booking websites, when they're not present, from 365days to a minimum of 180days, if councils deem it appropriate.

But LJ Hooker real estate agent Paul McMahon, who manages several properties listed on STHL websites on behalf of the owners, said it was important Tweed Shire Council supported the booming industry.

"The holiday industry is about an $800million industry in the Tweed that creates thousands of jobs, creates facilities and enhances our lifestyle so much," he said.

"(Holidaymakers) spend approximately $180 per person per day to come here."

Earlier this year, Tweed Shire Council was criticised for cracking down on STHL operators without notice and issuing fines to properties that had complaints made against them.

After managing several properties affected by the council's actions, MrMcMahon said regulating the STHL industry would set better guidelines for both operators and the council moving forward.

"We were given a week's notice to shut down an industry that we'd spent 30years building and then we were supposed to ring everybody a week before Christmas and tell everyone they can't come," MrMcMahon said.

"We need to be able to rely on the legislation we've got so we can properly run the industry."

Meanwhile, HomeAway (formerly Stayz) director of corporate affairs Eacham Curry said it was important councils did not set an "arbitrary cap" on short-term rental accommodation.

"Short-term rental accommodation is not only an important driver of economic growth and jobs for the Northern Rivers and Tweed Valley, but it also adds crucial tourism accommodation capacity to the region," he said.

"Restrictions on the availability of STHL will unnecessarily diminish the economic benefit derived from the tourism sector, drive up the cost of holiday accommodation, and send valuable tourism dollars to other parts of the state."

Meanwhile, unauthorised STHL in the Tweed will continue to be investigated by Tweed Shire Council, despite the new state STHL policy.

Council on Thursday voted 4-3 to continue investigating any complaints received against STHLs, as the legislation still states it is illegal for any property within the Low Density Residential R2 zone to operate a STHL.

"I find the State Government's announcement just totally inappropriate in what they've suggested as STHL use," Councillor Chris Cherry said.

"It doesn't address the issues we're finding on the ground in which STHL takes up our long-term residences. Those 365 nights are taking up residential homes.

"(People are) letting their homes be used constantly for STHL when we need places for people for long-term housing."

The council's planning director Vince Connell recommended council allow officers to continue assessing any STHL complaints.

"We're not quite clear on the exact details coming through (from the State Government)," he said.

"The announcement has not changed any certain immediate legislation, including the current planning legislation we operate in.

"Council still has a responsibility... to act on legitimate complaints on unauthorised land use."

The new STHL policy will include:

• Mandatory code of conduct for online accommodation platforms, letting agents, hosts and guests to address impacts like noise levels, disruptive guests and effects on shared neighbourhood amenities.
• A new dispute resolution process to resolve complaints, and NSW Fair Trading will have powers to police online platforms and letting agents.
• Two strikes and you're out policy for hosts and guests.