Great news for Perth investors! REIWA (Real Estate Institute of Western Australia) has welcomed the State Government’s decision to extend two crucial incentive schemes aimed at increasing the supply of long-term rental properties: the Short-Term Rental Accommodation (STRA) and Vacant Property Rental (VPR) incentive schemes.

Why is this important?

Both schemes, initially set to conclude on June 30, 2025, have now been extended until December 31, 2025, or until their allocated funds are exhausted. This extension provides more time for property owners to take advantage of these beneficial programs and contribute to the much-needed increase in rental stock.

Success Stories and a Sensible Approach

REIWA President Suzanne Brown highlighted the positive impact of these schemes, noting that over 700 properties have successfully transitioned to long-term rentals as a direct result. This demonstrates the effectiveness of an incentive-based approach.

Ms. Brown emphasized REIWA’s support for the government’s use of incentives, rather than punitive taxes, to encourage owners to make this shift. She contrasted WA’s approach with that of other states, such as Victoria, which has introduced a vacant land residential tax and a 7.5% short stay levy. These tax measures, as Ms. Brown pointed out, can sometimes lead to investors exiting the market, potentially exacerbating supply issues.

How the Schemes Work:

  • Short-Term Rental Accommodation (STRA) Incentive: This scheme offers a $10,000 payment for eligible properties that are currently used for short-term accommodation (like Airbnb) and are converted to long-term rentals. Since its launch in November 2023, this incentive has already added 457 new rental properties to the market.
  • Vacant Property Rental (VPR) Incentive: Owners who make their vacant property available for long-term rent can receive a $5,000 payment. This scheme, which commenced in May 2024, has already converted an additional 249 properties.

A Stable Environment for Investment is Key

While acknowledging that rental conditions in WA are showing signs of improvement with increasing supply and a rising vacancy rate, Ms. Brown stressed the importance of maintaining an environment that continues to attract and retain investors.

She attributed the current recovery of the rental market, in part, to WA’s supportive legislative environment. The combination of relatively affordable housing, potential for strong rental yields, and the moderate reforms introduced in 2023 have all played a crucial role in encouraging investment.

Ms. Brown warned against complacency, noting that WA’s population continues to grow, and rental supply has not yet returned to previous highs. “Investors can and will exit the market if they have concerns about legislation,” she stated, reiterating the need for balanced and stable future rental reforms to avoid a return to the challenging conditions experienced in recent years.

For Property Owners

If you own a short-term rental or a vacant property, this extended incentive program presents a fantastic opportunity to contribute to Perth’s long-term rental supply while receiving a financial boost. Our team can help you understand the eligibility criteria and guide you through the process of transitioning your property.

This extension is a positive step forward, reinforcing the government’s commitment to addressing housing supply in Western Australia through a collaborative and incentive-driven approach.