A Property Owner’s Guide to Navigating Western Australia’s Short Term Rental Accommodation Laws
Western Australia has recently introduced a new framework for the regulation of Short-Term Rental Accommodation (STRA). This article outlines a summary of STRA changes, to support STRA operators in understanding the new framework. The first step is determining which category of STRA is being proposed.
STRA Categories
There are two categories of STRA: ‘hosted’ and ‘unhosted’.
A hosted STRA is where the owner, occupier or agent ordinarily resides at the same dwelling, or on the same lot, during the STRA arrangement.1 This essentially means that the owner of the STRA lives in it while it is being used for STRA purposes.
Under the Short-Term Rental Accommodation (STRA) – Guidance for Local Government, hosted STRA does not require development approval; however it will still require registration under the STRA register.2 Hosted STRA’s are regulated consistently across the state, whereas the regulations unhosted STRA’s differ upon location, which will be discussed below.
An unhosted STRA is a STRA that is not hosted and can hold up to 12 people per night.3 This means that the owner does not reside on the same dwelling or lot as the STRA. The extent of unhosted STRA requirements will be outlined below.
Registration
All owners of STRA are required to register the property under the state-wide STRA Register, whether they are hosted or unhosted.4 The STRA register can be accessed on the Department of Energy, Mines, industry Regulation and Safety (DEMIRS) portal. Registration is required to be renewed annually.
Ongoing Compliance Obligations
Owners should be aware there are ongoing compliance obligations for all STRA:
Maintenance of Registration Details: Owners must ensure their registration details are correct and up to date, with any changes required to be communicated to the register.
Compliance with Local Planning Laws: Owners must comply with local planning frameworks alongside the STRA Act.
Location and Rules that Apply
Regulation of unhosted STRA differs based on whether they are in the Perth Metropolitan Area or Regional WA.5
Perth metropolitan Area: Regulation is provided through a consistent set of rules (inclusive of the 90-night exemption outlined below);
Regional WA: There is no consistent regulation in Regional WA, as recognition of the necessity for greater flexibility for regional local governments to have discretion to grant STRA development approval based on specific housing and tourism needs.6 Regional local governments may decide that development approval is required on all unhosted STRA’s, in order to properly assess the impacts on the local housing markets and tourism economy.7 If a STRA is located in Regional WA, it is imperative that owners contact their local government before registering their STRA.
Understanding the 90-night rule:
If an owner wants to operate a unhosted STRA in the Perth Metropolitan Area, they must be aware of the 90-night rule which applies to all un-hosted properties. The rule provides that an unhosted STRA can be booked for no more than 90 nights in a relevant 12-month period8, without needing development approval.9 If an unhosted STRA is used for a period exceeding 12 months, then development approval is required.10 The statewide STRA Register will track unhosted STRA’s, to ensure compliance with the 90 day rule.11
Conclusion
The changes to STRA regulation in WA have increased regulation and obligation of owners. Owners should consider Local Planning Polices and schemes relevant to their location prior to registration and ensure they are complying with all relevant laws and policy. Any owner who is struggling to navigate or are unaware of the true extent of these laws should obtain independent advice.