Owners of some un-hosted short-term rental accommodation properties in the City of Vincent could soon face higher rates for the first time. Under proposed new rates for the 2026-27 financial year, people with un-hosted short-term rental properties, such as those listed on Airbnb or Stayz, may pay a 20 per cent higher rate than standard residential properties.
Reason for the Increase
City staff argue that the higher charges are necessary because short-term rental accommodations place greater pressure on local infrastructure and services, including waste collection, parking, and public amenities. They also create additional compliance and regulatory costs. “They also require additional regulatory oversight, resulting in higher administrative and compliance costs. The higher rates revenue will offset these additional costs and reduce the burden on other ratepayers,” a report to the council stated.
Context and Comparisons
The proposal comes amid ongoing concerns about the impact of short-term rentals on Perth’s already strained housing market, with councils increasingly looking at ways to regulate the growing sector. The cities of Perth and Fremantle currently have separate rating categories for short-term rentals, treating them as commercial properties. The City of Bayswater has also considered increasing rates for short-term rentals, but the proposal was voted down by the council last July.
Airbnb declined to comment on the proposal.
Targeting Vacant Landowners
The city is also targeting vacant landowners, proposing a 40.9 per cent increase for vacant residential properties in an attempt to encourage development and increase housing supply. “A concession for residential properties that have been vacant for less than two years is proposed in the annual budget 2026-27 to reduce the additional increase for those ratepayers,” the staff report said.
General Rate Increase
The city is also proposing a general rate increase of 5.4 per cent. “For a median residential household, this equates to roughly $1.85 per week or $96.20 per year,” the report says. The proposed increases have been blamed on rising operational costs, including a $2.8 million increase in employee expenses linked to enterprise bargaining agreement wage rises and staffing requirements at Beatty Park Leisure Centre. Additional pressures include increased waste service costs and the ongoing response to the polyphagous shot-hole borer outbreak.
Property Value Changes
State Government data showed that the value of residential properties had increased by an average of 33.4 per cent during the latest triennial revaluation. “(This) adds volatility to the rate-setting process, as rates are calculated based on these updated gross rental values,” the Vincent report said.
Next Steps
The council is scheduled to decide on rates at its May 19 meeting. If approved, public consultation on the proposed rates and budget will open May 20 and run until June 10.
