If you have a short-term rental property or are considering short-term rentals, you may have heard of proposed changes in Western Australia’s short-term rental accommodation (STRA) scene.
While these short-term rental changes require compliance from property providers, they DO NOT introduce a cap on the number of nights you can lease your property on the short-term market.
Essentially, these changes will provide more consistency around short-term rental accommodation rules and give valuable data to local and statewide planning for housing, development and tourism opportunities.
Here’s what you need to know.
What is STRA?
STRA is an acronym for short-term rental accommodation. STRA refers to renting out your property (or part of it) for a short period, usually nightly or weekly. Typically, guests book this type of accommodation through an online property such as Airbnb or STAYZ.
What are these planning and registration changes?
According to the WA government’s new Short-Term Rental Accommodation website, “Broadly speaking, the changes will ensure a more consistent set of rules for STRA properties across Western Australia while supporting the role of STRA in regional areas.
“Up until now, local governments have set their own requirements… The proposed changes to planning regulations will provide greater consistency across the state in relation to what approvals are needed (if any) for STRA proposals, as well as how these used are defined in local (town) planning schemes…”
In summary, the government has not created these changes to prohibit STRA activity but to provide more consistency with rulings — and to compile valuable data for local and state governments to help with housing, development and tourism planning.
So, what will I have to do?
- A new STRA register is expected to open in mid-2024.
- If you have a STRA property, you must register by the 1st of January 2025.
- All providers must register their properties before listing them (on platforms such as Airbnb) and taking bookings.
- Guests staying on your property are hosted (you stay on the property with them)
- Guests staying on your property are un-hosted (they have the property to themselves)
- The property requires development approval
- The property is currently exempt from planning approval
- Your existing planning approvals for STRA will remain valid.
- If you don’t have planning approval and operate an STRA, check with your local government to ensure compliance.
- Visit the Western Australian government’s new Short-Term Rental Accommodation website.
- Download a helpful Infographic on proposed STRA planning reforms here.
- City of Fremantle – STRA Registration
- City of Perth – STRA Registration
- Property listing management & marketing
- Check-in & customer communications
- Cleaning, laundry & maintenance – ensuring that 5-star feel every time
- Guest vetting – keeping your property safe and secure
- Property insurance
Does everyone have to register?
Every STRA provider must register, although some will be exempted from additional requirements. You will have to register your STRA property regardless of whether:
How will this change my current STRA operations?
Does this mean I must limit the nights I lease my property?
No. These new reforms do not limit the nights you lease your Western Australian property short-term.
Where can I get more information on the STRA register?
What is the $10,000 STRA Incentive Scheme all about?
The Western Australian government has introduced a $10,000 financial incentive to existing owners of un-hosted short-term rental accommodation properties in WA. To qualify, you must transfer your property from STRA to the long-term rental market for at least 12 months to support people seeking a rental home.
Additionally, you must own the property, rent out the entire property and have rented out the property in an STRA capacity between the 28th of September, 2023 and the scheme’s announcement on the 9th of November, 2023.
You also must transition your property from short-term to long-term accommodation by the 8th of May 2024. Your tenancy agreement must be for a minimum of 12 months.
You can learn more about the Short-Term Rental Accommodation Incentive Scheme here.
Is the $10,000 STRA Incentive Scheme worth it?
It depends on your circumstances. Although, in our opinion, the $10,000 incentive doesn’t come close to the attractive income potential of short-term rentals.
Suppose you rent your property for $600 a week. (The maximum weekly rental income allowable to receive the incentive is $700) you’d earn $31,200 a year. Add the $10,000 incentive, and that’s $41,200. Not bad.
Rent your property at $250 a night with an average occupancy rate of 67%, and you could earn $91,000. You’d still have to factor in cleaning, laundry and maintenance. But if you hire a short-term rental property manager at a 20% set fee, those issues would be sorted, and you’d still clear just under $73,000.
NB: The above figures are approximate only. The earning potential of the property differs. Please conduct your own financial research to determine your best rental option.
Current short-term rental regulations in Perth
Currently, there are a few obligations surrounding STRA that all West Australian property renters need to be aware of, even if you have your property managed. Fortunately, they are easy to follow.
If you’re starting with STRA in 2024, before these changes take place, you’ll still need to register your property with your local council and be aware of your responsibilities as a landlord.
Local government approval
Each local council has its bylaws to follow, with some having bylaws specific to short-term rental and holiday accommodation. For further information, see:
Rental home safety & security
Read a guide to landlords’ responsibilities here.
Need help managing your holiday home rental?
If you’d like to generate more income without the hard work, contact Cloudbnb today.
Perth-based Cloudbnb can maximise your earning potential and minimise stress. Our complete short-term holiday rental management service makes getting the most from your rental property (like 14% in passive returns) without lifting a finger.
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