Obtaining development approval for short-term rental accommodation in Western Australia
New Short Term Rental Accommodation (STRA) must in many cases now be the subject of local government planning approval. [1] This is a requirement of the Planning and Development (Local Planning Schemes) Amendment (Short-Term Rental Accommodation) Regulations 2024 (WA) (Regulations).
If you are planning to operate STRA, it is important to consider whether a development application is required and how to prepare an application if so, why an application might be refused and what options may be available if the application is issued.
Is development approval required?
Property owners wishing to operate a STRA should first consider the type of STRA they are proposing and then consider the relevant local planning scheme. Generally:
hosted STRA is exempt from development approval;[2]
unhosted STRA in metropolitan Perth will require development approval if operating for more than a total of 90 days within a 12-month period;[3] and
whether development approval is required for unhosted STRA in regional WA will depend on the local planning scheme.
What to include in a STRA development application
If development approval is required, it is important to review the local planning scheme and any applicable policy carefully. This is because a decision to approve or refuse the change of use will be considered against the planning framework, including any provisions related to the location, management and the impact on the amenity of the locality of the proposed STRA.[4]
A development application for STRA should describe how the proposed STRA meets the requirements and objectives of the local planning framework and set out:
whether the STRA is hosted or unhosted;
a description of the dwelling, including the number of bedrooms, guest capacity, parking availability and amenities available to guests;
the proposed management plan including how it responds to potential amenity impacts such as noise, waste storage, traffic and use of outdoor spaces; and
how the proposal meets the objectives of the planning farmwork.
Why an application may be refused
An application for STRA may be refused where the proposal or application does not address properly the relevant planning framework. This includes non-compliance with the objectives of the local planning scheme, requirements of any local planning policy or a conclusion that the amenity impacts are excessive and have not been mitigated adequately or at all.
Options if an application is refused
If an application for STRA is refused, the first step is to review the reasons for refusal carefully. In some cases, the issues may be addressed through changes to guest numbers or general operational restrictions.
In WA, an application may also be made to the State Administrative Tribunal (SAT) to review the refusal and make a decision on its validity.[5] Not all applications will proceed to a hearing, with many SAT matters resolved through mediation or amended plans being submitted before a final hearing is required.
From a practical standpoint, SAT review is most useful in circumstances where there is a realistic chance of approval. If the proposed STRA is fundamentally inconsistent with the local planning framework, lodging a fresh application may be the better course.
Conclusion
Development approval for STRA is not always straightforward, particularly with many local governments introducing STRA local planning policies that include different objectives and requirements. If you are planning on operating a STRA or have received an adverse decision and have questions about moving forward, please be in touch.
[1]Planning Bulletin 115/2024: Short-Term Rental Accommodation (STRA) – Guidance for local government
[2] Ibid. 5
[3]Planning and Development (Local Planning Schemes) Amendment (Short-Term Rental Accommodation) Regulations 2024, r 6
[4]Position Statement: Planning for Tourism and Short-term Rental Accommodation 2024. 5.4.2.2
[5]Planning and Development Act 2005 (WA), s 252