"Ms Hart acknowledged the scheme was only open for a short period but said it would provide some assistance while other supply measures initiated by the Government were being implemented."
REIWA CEO Cath Hart said the $10,000 short-stay incentive scheme announced by the Cook Government today could provide some welcome assistance to the heated rental market.
“The short-stay market is not the silver bullet for the rental issues we are facing. According to research by the Real Estate Institute of Australia earlier this year, entire short-stay dwellings that may be suitable for long-term rentals only make up a small percentage of total dwellings and the ratio to private rental dwellings was generally low,” she said.
“In addition, not every owner is in a position to transfer their property and not every short-stay property is appropriate for the long-term rental market.
“However, for some short-stay owners, this incentive may encourage them to make the switch. We need every long-term rental we can get at the moment, and if it does boost rental supply, even marginally, then that’s a positive.
“We commend the Government for encouraging property owners to return to the long-term market rather than employing punitive measures like taxes.
“We also applaud their raft of efforts to support the rental market in general, such as yesterday’s announcement of the WA Rental Relief Scheme. There is no one solution to the situation we are facing, but every action taken helps.”
To qualify for the scheme, property owners must have had an entire property for rent on short-stay booking platforms within the past six weeks and then provide a minimum 12-month lease to new long-term tenants. There will be limits placed on the maximum rent that can be charged to protect tenants and ensure housing is affordable.
The payment will be made in two parts, with $4,000 paid once eligible applications are approved and $6,000 after the long-term agreement reaches 12 months.
Short-stay property owners can already submit expressions of interest online, with the formal application process expected to begin by the end of 2023.
Ms Hart acknowledged the scheme was only open for a short period but said it would provide some assistance while other supply measures initiated by the Government were being implemented.
“Supply is the greatest issue facing the property market at the moment, but it takes time to get houses out of the ground,” she said.
“The Government recognises supply is the issue and are implementing a range of initiatives, such as planning reforms and financial assistance with infrastructure, to help build more dwellings quickly.
“The incentive scheme is another circuit breaker that will provide some assistance while other supply measures come into effect.”
Ms Hart said REIWA supported the registration scheme, which will provide an overview of the entire short-stay market and help create greater uniformity in how the short-term rental accommodation sector is managed throughout WA.
The Cook Government has introduced a Bill to Parliament regarding the planned reforms to the Residential Tenancies Act announced in May.
30 November 2023
Whether you want to buy, invest, or brag about your suburb at the next family dinner, you'll find a snapshot of the action.
30 November 2023
We spoke to Tim about the benefits of working within a team, and how the Bunbury market has grown in the past 12 months.
29 November 2023
Sales transactions in Perth last week were 13.6 per cent higher than the previous week, with REIWA members reporting 1,068 transactions.
27 November 2023
This week REIWA Research has crunched the numbers to look at the top performing suburbs south of the river.
23 November 2023
REIWA CEO Cath Hart said the guide will provide crucial insights into the benefits, rights and responsibilities associated with strata living.
23 November 2023
REIWA CEO Cath Hart said property managers face a lot of challenges at the best of times, but the past few years have been particularly stressful.
22 November 2023
REIWA President Joe White said Bunbury, like many regions, was seeing strong demand for established homes, which was putting upward pressure on prices.
21 November 2023
Sales transactions in Perth last week were 5.4 per cent lower than the previous week, with REIWA members reporting 949 transactions.
20 November 2023