WA government tightens grip on short-term rentals

The move follows a slew of new regulations on short-term rentals in the state in late 2023, including a $10,000 incentive offered for owners who transition their vacant short-term rental into a long-term lease.

If passed, the new legislation would require property owners to officially register their STRA property prior to advertising or taking in bookings.

The STRA Register is expected to be open by mid-2024, and all hosted and unhosted short-term rental properties will be required to be registered by 1 January 2025.

“There is no easy fix when it comes to addressing Western Australia’s tight rental market,” said Commerce Minister Sue Ellery.

While Ms Ellery acknowledged “the important role short-term rental accommodation plays for tourists wishing to explore our state”, she asserted that “these reforms have struck a balance between more robust regulation of short-stay accommodation … and incentivising owners to make their properties available to people who need a place to call home”.

In addition to the state register, the proposed reforms include changes to current planning requirements.

Across the Perth metropolitan areas, unhosted property owners – defined as those who live offsite and give guests exclusive use of the property – will be required to obtain development approval if the property is rented out for more than 90 days each year.

In other areas of Western Australia, local councils will have the power to decide when planning approval is required based on the needs of their local community.

Hosted properties – those where the owner lives onsite and typically rents out a room – will not be subject to these planning requirements.

John Carey, Planning and Housing Minister, said: “The reforms provide a balanced approach to better regulation for STRA across the state.”

He added that the new planning reforms “will provide metropolitan local governments with guidance on STRA land uses in their planning schemes and frameworks through a balanced approach”.

Property owners would be required to demonstrate compliance with the new planning requirements by 1 January 2026, or risk being removed from the STRA Register.

The new proposed regulations have been given a green light from the Australia and New Zealand Short Term Rental Association (ASTRA), which stated that the association “welcomes the Cook government’s incentive-based regulatory reform”.

ASTRA’s chief executive officer, Mitchell Price, stated that the Cook government has “worked to strike a balance” between protecting the visitor economy and addressing the state’s rental supply shortage.

“Smart and practical reform that is a win-win for our industry and for the economy is what comes when government consults with industry,” Mr Price said. “ASTRA is pleased that the views of our members were heard during the consultation.”

Mr Price noted that ASTRA “would have like to see a Code of Conduct accompany the Cook government’s reforms”, but acknowledged that “there is still time before these changes are implemented.”