A significant portion of Perth's local governments have failed to implement the Western Australian government's key policy for regulating short-term rentals, despite a critical deadline passing last week.
Deadline Passes with Key Councils Non-Compliant
The state government's planning framework for short-term rental accommodations, such as those listed on Airbnb and Stayz, required all metropolitan councils to formally adopt it by October 1, 2024. However, a third of the 30 metropolitan councils had not onboarded with the scheme by that date, leaving a major gap in the intended statewide regulatory system.
The policy, which was endorsed by the Western Australian Planning Commission in December 2023, was designed to provide a consistent set of rules. Its core mechanism is a 'hosted' and 'unhosted' model. Under this model, properties where the host is present during a guest's stay face fewer restrictions. In contrast, 'unhosted' properties, where the entire dwelling is rented out, are limited to operating for a maximum of 90 nights per year in specific residential zones unless councils choose to set a different limit.
Implementation Hurdles and Council Concerns
The delay in adoption by numerous councils highlights practical and administrative challenges. A spokesperson for the Department of Planning, Lands and Heritage confirmed the situation, stating that while the framework is now in effect, councils that have not adopted their own local planning policies must default to the state's prescribed 90-night cap for unhosted stays.
This creates a two-tiered system of enforcement and potential confusion for hosts and platforms. The lagging councils include major local government areas, raising questions about the scheme's immediate effectiveness in managing the impact of short-term rentals on long-term housing availability in pressured suburbs.
Planning Minister John Carey has been a vocal advocate for the scheme, arguing it strikes a balance between allowing homeowners to earn extra income and protecting housing stock. The government's move was largely in response to growing concerns that the proliferation of whole homes being used for tourism was exacerbating rental shortages and driving up prices.
Consequences and the Path Forward
The failure of multiple councils to meet the deadline means the state's oversight body, the Department of Planning, Lands and Heritage, will now need to monitor compliance and potentially enforce the default rules in those areas. This places an additional administrative burden on the state.
For hosts in non-compliant council areas, the 90-night annual limit for unhosted rentals is automatically in force. However, consistent enforcement relies on data sharing from booking platforms, a process that is still being fully established. Councils that are still working on their local policies may yet introduce different caps, but until they do, the state-mandated limit applies.
This staggered implementation underscores the complexities of coordinating state-level policy with local government execution. The situation leaves a substantial segment of the Perth metropolitan area operating under a bare-minimum rule set, potentially diluting the policy's intended impact on freeing up housing and creating clear, uniform regulations for the burgeoning short-term rental industry.
