In a significant announcement, the Cook Government has unveiled a set of fresh regulations governing un-hosted Short-Term Rental Accommodation (STRA) in Western Australia. These reforms are accompanied by an enticing incentive program aimed at encouraging property owners to transition their properties back into the long-term rental market, thereby increasing housing supply.
Short-term Rental Accomodation Incentive Scheme
As part of the Cook Government's ongoing efforts to boost housing supply and affordability, a new STRA Incentive Scheme has been introduced. This scheme will be in place for six months to encourage property owners to switch from short-stay rentals to long-term rental properties.
Qualification and Payments
The STRA Incentive Scheme offers a $10,000 payment to property owners willing to make their property available for long-term rental. To qualify for the payment, property owners must have offered an entire property for short-term rental on platforms like Airbnb or Stayz within the past six weeks. Applicants will need to provide a minimum 12-month lease agreement to new, long-term tenants as per the Residential Tenancies Act 1987.
Maximum Rent Charges
To ensure affordability and tenant protection, maximum rent charges by location (region) will apply. For example, the maximum rent chargeable in Perth (including Mandurah) is set at $800 per week, while it's $650 per week in the South West. This approach allows property owners to set rents that align with their property's location conditions.
Two-Stage Payment Process
The payment process for the STRA Incentive Scheme consists of a $4,000 payment upon approval of eligible applications and an additional $6,000 payment after the long-term tenancy rental agreement reaches 12 months. Property owners interested in participating can now submit an Expression of Interest (EOI) online, with the formal application process expected to begin by the end of 2023.
Balancing Regulation and Property Rights
The reforms aim to strike a delicate balance between better regulating STRA across Western Australia while respecting the rights of individual property owners. Key elements of these changes include:
State-Wide STRA Register: The establishment of a State-wide register for all short-term rental accommodation properties.
Mandatory Registration: A mandate for property owners to register all STRA properties in Western Australia before advertising and accepting bookings, including on online platforms.
Planning Requirements: The introduction of planning requirements for STRA properties within the Perth metropolitan area, which includes the necessity of planning approval for un-hosted STRA properties.
STRA Incentive Scheme: An incentive program designed to encourage property owners to return their STRA properties to the long-term rental market.
Registration Requirements
Registrations for STRA properties are expected to open in mid-2024. Property owners must complete their registration by 1 January 2025, including those with properties that do not require planning approval, such as hosted STRA properties. Property owners already required to have development approval must provide their development approval number at registration, or by 1 January 2026, if subject to the new planning requirements, to remain on the register.
Regional Variations
In the Perth metropolitan area, the planning requirements for un-hosted STRA properties will change, with approval required from the local government if the property is rented for more than 90 nights. In regional areas, including the Peel region, local governments will determine when planning approval is necessary.
Further guidance will be provided to local governments on how to incorporate STRA land uses into their planning schemes and frameworks. Notably, the reforms do not propose any limitations on the number of nights a hosted or un-hosted STRA property can be rented for.
The recent reforms and incentives introduced by the Cook Government aim to reshape the landscape of short-term rentals in Western Australia. These changes provide a framework for better regulation of STRA properties while incentivising property owners to contribute to the long-term housing market, increasing affordability and supply.
Full media statement is available here.
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