WA Government offers $10,000 incentive to convert short-term accommodation into long-term rentals

In an effort to boost housing supply, the Western Australian Government has introduced a new initiative, offering short-term accommodation owners a $10,000 incentive to transition their properties into long-term rental leases.

The scheme is part of a slew of changes the government plans to introduce to regulate the growing short-term rental market.

How does the incentive scheme work?

This new Short-Term Rental Accommodation (STRA) Incentive Scheme is designed to encourage eligible property owners to switch to long-term rentals with a $10,000 incentive payment.

The incentive payment is structured in two stages: the first instalment paid once eligible applications are approved, and the remaining after the long-term tenancy rental agreement reaches 12 months.

The scheme is only available for a limited period, and property owners will need to transition their properties to long-term rental accommodation by 8 May 2024 to qualify.

Who qualifies for the scheme?

To be eligible, property owners must have listed their entire property for rent on a short-stay booking platform in the six weeks prior to the scheme’s announcement on 9 November 2023. Owners must also be willing to commit to a minimum 12-month lease for new long-term tenants.

There will be limits placed on the maximum rent that can be charged to protect tenants and ensure the housing is affordable.

Additional state-wide reforms for short-term accommodation

In addition to the STRA Incentive Scheme, the WA government has proposed two reforms aimed at delivering better regulation of the short-term housing market.

Under the revised regulations, all short-term accommodation properties in Western Australia will need to be registered by 1 January 2025 before they can be advertised and accept bookings. This move aims to establish consistency within the sector and clarify the requirements for operating a short-term rental accommodation property.

Additionally, in the Perth metropolitan area, planning approval will be required for un-hosted STRA properties if they operate for more than 90 nights.

Considering converting your short-term accommodation to a long-term rental?

If you’re contemplating the transition from short term to long term leasing, our expert team can assist you. We’ll provide valuable recommendations on preparing your property for the rental market, help you find the right tenant, and offer guidance on navigating the property market.