Western Australians are all too aware of the pressure on housing supply, with demand continuing to outpace availability across both metropolitan and regional areas. A growing population, construction delays, and investor hesitancy have contributed to a tightening rental market, making it increasingly difficult for tenants to secure stable accommodation. In response, there is an urgent need to expand long-term rental options to ensure housing security and affordability for West Australians whilst balancing tourism considerations. Encouraging private landlords and developers to commit to longer-term leasing arrangements has become a key priority in tackling this ongoing supply challenge.
The Western Australian Government has recently extended two critical housing initiatives aimed at easing rental pressures across the state. The Short-Term Rental Accommodation (STRA) and Vacant Property Rental (VPR) incentive schemes originally due to close by 30 June 2025 will now accept applications until 31 December 2025, or until allocated funds are exhausted. This move aims to unlock more homes for long-term rental by encouraging property owners to switch short-stay and vacant properties into the permanent rental pool. At Realmark we believe that any increase in supply is needed and recognise the implications for towns where short-term accommodation options have increasingly dominated the market.
Short Term Rental Accommodation
A short-term rental refers to a residential property that is rented out for a period shorter than a standard lease, typically less than 3 months, and often as short as a few days or weeks. These rentals are most used by tourists, business travellers, or temporary residents.
In Western Australia, short-term rentals are now being more formally regulated. From 1 January 2025, anyone conducting short-term rentals in WA must register with the State Government and display a registration number. The Short-Term Rental Accommodation (STRA) Register is an initiative of the Western Australian (WA) Government through the Short-Term Rental Accommodation Act 2024 to gather information on the STRA sector in WA. There are costs for registration as well as reporting obligations.
You can find more about the obligationsof Short-Term Rental Accommodation Register on the Goverment of Western Australia Website:
Short-Term Rental Accommodation Register
Local governments across WA have taken different approaches to short-term rental policy, often based on local housing pressures, tourism needs, or community feedback. Examples of different Local Government Short-Term policies include:
Town of Victoria Park
City of Busselton
These policies may affect zoning, approval requirements, occupancy caps, and other operational rules.
What the Incentives Offer to convert short-stay rentals into long-term rental
In a move to promote and assist owners to convert short-stay rentals into long-term rental homes property owners and investors are eligible for:
• $10,000 STRA incentive for converting short-stay rentals into long-term rental homes.
• $5,000 VPR incentive for leasing currently vacant properties for at least 12 months.
Eligibility requirements include offering a minimum 12-month lease to new tenants and ensuring the property is a self-contained dwelling. Incentives are only paid once the full lease term is completed. There are also conditions such as maximum rent, and minimum terms, and costs to convert a property the rental market that owners need to consider when deciding to apply for an incentive.
For full details of the eligibility criteria and condition residential property owners are encouraged to view the information here
Short-Term Rental Accommodation Incentive Scheme
Vacant Property Rental Incentive Scheme
The impact for the regional and torurism markets
In regional communities especially tourism hotspots, short-term holiday rentals have soared in popularity, making it increasingly difficult for locals to secure long-term housing. The extension of these schemes provides an important opportunity to recalibrate. According to the register there are currently 45.65% of registered short stay accommodation in the Perth Metro and 27.01% in the South West in July 2025.
John Percudani, Managing Director Realmark, commented on the regional implications:
“These incentives are a great opportunity for investors, especially in regional areas such as the South West where short-stay accommodation has really taken off, if people want to avoid some the hassle and risk of short term or perhaps didn’t use their vacation residence as regularly as they originally planned. We need to find the right balance between offering high-quality accommodation for tourists and ensuring there are enough homes available for locals who live and work in these communities.”
With applications open until the end of 2025 (or until funding runs out), owners of eligible properties are being urged to take action. Whether it’s a beachside holiday home sitting idle, a CBD apartment used sparingly for Airbnb, or perhaps a scenario where your strata scheme no longer allows short stay accommodation, the time may be right to help ease WA’s housing crisis.
How do you switch to long-term accommodation?
Switching your property from short-stay to long-term rental can offer significant advantages for investors and homeowners seeking stability and peace of mind. Unlike short-stay accommodation, long-term leases provide a steady and dependable revenue stream without the volatility of seasonal demand or the added costs of frequent cleaning, utilities, and maintenance that can erode income. Risk-averse investors will also benefit from reduced exposure to regulatory uncertainty, inconsistent council policies, and excessive wear and tear, and damage, which are common concerns with short-stay properties. With long-term leasing, you gain the ability to thoroughly screen tenants through credit checks and background profiling, ensuring reliable occupants who care for your property. In addition to the above compliance issues our team can assist you with arranging landlord insurance and providing information so that you can arrange advice to identify any items on the property that could depreciated.
How can Realmark assist you?
Any one of the Realmark’s experienced property managers across Western Australia can assist you to quickly bring your property to the rental market including meeting compliance and documentation requirements, and by providing you with information on the ongoing costs and potential market rental that you may receive, prior to weighing up your decision.
Want to learn more about making your property work for long-term tenants in WA by minimising risk and ensuring your maximum return in the process? Our team can help you navigate the process, from leasing advice to full property management services.
You can also find more information
WAPC Short-Term Rental Accommodation Planning Regulations