Strata living in Western Australia is about to get a significant shake-up. Under proposals released as part of the State Government’s five-year review of the Strata Titles Act 1985, owners in brand-new apartment complexes would have to decide whether short-term rentals like Airbnb are allowed, and they would have to decide early.

The twist is what comes after. Once the vote is made at a newly occupied complex, the proposal is that owners would have no option to change their minds later.

For anyone who owns, rents out or is thinking of buying an apartment in Perth, this is a proposal worth understanding properly. It touches on property rights, building culture, investment returns and the day-to-day experience of living next door to a revolving door of holiday guests.

This guide breaks down what is being proposed, what the Minister and the Opposition have said, how to have your say and what it could mean for buyers, sellers and investors.

Key Facts at a Glance

ItemDetail
What is proposedNew complexes must decide on short-term rentals as one of the scheme’s first orders of business
When the decision is madeWhen the complex is first occupied
Can it be changed later?Not under the proposal as reported
Current positionComplexes can restrict short-term rentals through a bylaw
Law under reviewStrata Titles Act 1985 (five-year statutory review)
Consultation closes26 November 2026, via Landgate’s website
Number of reform topics22 topics in the Phase Two Discussion Paper

How Airbnb Rules Work in a Strata Complex Today

At present, an apartment complex can ban Airbnb-style stays through a bylaw. A bylaw is simply one of the rules a strata company adopts to govern how the building is used, from pets and parking to noise and short-term letting.

Because bylaws can generally be changed by the owners over time, the short-stay question has often stayed open for the life of a building. That flexibility sounds fair on paper.

In practice, it can mean the same argument resurfaces year after year. One group of owners wants to ban short-term rentals. Another group has invested on the assumption that they can list their apartments on holiday platforms.

The Planning Minister, John Carey, has pointed to exactly this problem. He says the issue tends to drag on and become contested, and that much of the conflict in strata communities comes from a lack of certainty and clarity in processes.

What the Proposed Strata Change Would Do

The proposal is a deliberate attempt to settle the matter at the start. Rather than leaving short-term rentals as an ongoing battleground, new complexes would need to make the call as one of the first decisions the owners make as a group.

Here is how the proposed approach compares with the current one.

Current approachProposed approach for new complexes
Who decidesOwners, through a bylawOwners, as an early group decision
TimingAny time, often years after occupationWhen the complex is first occupied
Can owners revisit it?Generally yes, by changing bylawsNo option to change later, as reported
Main goalFlexibilityCertainty and fewer disputes

It is important to read the detail of the final legislation when it arrives. The reporting so far describes the direction of the proposal, and the finer points could change before anything becomes law.

What Carey Says About Certainty and Short-Term Rentals

Mr Carey says the aim is greater clarity. In his words, this would be one of the first decisions a new apartment complex has to make together, rather than a fight that drags on.

He also confirmed that the change would still leave room for individual choice in one respect. An owner would be able to decide to transition their own apartment to an Airbnb later on.

That detail matters. It suggests the early vote is about setting the building’s overall position on short-term rentals, rather than stopping every individual owner from ever changing how they use their lot. How that works in practice will depend on the wording of the final reforms.

The State Government’s own consultation material also says the reforms include requirements for schemes to determine their position on short-term rentals. It also mentions clearer mechanisms for recovering costs or damage attributable to short-term rental use.

The Government has said the Phase Two proposals are intended to improve governance, transparency and flexibility without imposing additional costs on owners.

What the Opposition Says About the Strata Review

Shadow Planning and Lands Minister Neil Thomson has taken a different angle. His criticism is not primarily about the Airbnb proposal itself. It is about timing and delivery.

Mr Thomson says the review was due as soon as practicable after May 2025. He argues that strata owners, council members and managers have now been waiting 17 months, and that the delay has allowed uncertainty and confusion to continue.

He also says strata living is growing rapidly, but the laws have not kept pace with the complexity of managing modern apartment developments.

Mr Thomson called on the Minister to complete the review promptly, publish its findings and provide a firm timetable for legislative reform.

Both views are worth weighing. The Government says the proposals will bring clarity and reduce conflict. The Opposition says owners have waited too long and still lack a firm timetable.

The Bigger Pressures Apartment Owners Are Facing

The short-term rental decision is only one piece of a much larger picture. Mr Thomson pointed to several pressures that he says are placing strain on owners and strata councils.

PressureWhy it matters for owners
Electric vehicle chargingInstalling chargers can raise cost, wiring and fairness questions
Renewable energySolar and other upgrades need collective agreement and funding
Ageing apartmentsOlder buildings can need major maintenance and repairs
Management fees and commissionsOwners want greater transparency and fewer conflicts of interest
Insurance, maintenance and leviesRising costs can stretch household budgets
Council and manager rolesUnclear responsibilities can lead to disputes
Council members’ workloadVolunteers are often expected to handle complex legal and financial matters

Mr Thomson argues these issues can create significant financial pressure and legal challenges for owners, many of whom have invested their life savings in an apartment.

If you own in a complex, it is worth asking whether your own scheme is prepared for these changes. A well-run scheme with an up-to-date maintenance plan and clear communication tends to be a calmer place to live and a more attractive one to buy into.

Why the Strata Review Matters to Perth Buyers

Apartments and townhouses make up a growing share of Perth’s housing mix. Western Australia has hundreds of thousands of strata lots, with industry bodies estimating nearly 340,000 strata properties housing about a quarter of the state’s population.

That scale is why changes to the Act can ripple through the wider market. The rules that govern how buildings are managed affect running costs, resale appeal and day-to-day amenity.

A building’s position on short-term rentals is one of the factors buyers increasingly consider. Some buyers actively want a quiet, owner-occupier or long-term tenant environment. Others, particularly investors, may be drawn to buildings where holiday letting is permitted.

Under the proposed model, that position would be locked in from the start for new complexes. Buyers would, in theory, know what they are getting before they sign.

What It Could Mean for Different Property Owners

The impact of the proposal depends heavily on who you are and where you are in the property cycle.

Who you arePossible implication
Off-the-plan buyerShort-term rental rules may be settled early, so check how the complex is likely to vote
Owner-occupier in a new complexA permanent decision could protect the building’s character, or limit future flexibility
Investor wanting holiday lettingLook closely at the building’s position before buying, because it may not be changeable
Investor planning long-term rentalsA short-term rental ban could suit your tenant profile and reduce turnover
Owner in an established complexThe proposal is aimed at new complexes, but your bylaws still matter

Importantly, the proposal as reported applies to new complexes. Owners in existing buildings would continue to operate under their current bylaws unless the final reforms say otherwise.

Questions to Ask Before Buying Into a Strata Complex

Whether or not the proposal becomes law, a smart buyer does their homework on a building’s rules. Here are the questions worth asking before you commit.

  • What do the current bylaws say about short-term rentals?
  • Has the scheme discussed or voted on the issue before?
  • What is the building’s current mix of owner-occupiers, long-term tenants and short-stay guests?
  • What are the levies, and how have they changed over recent years?
  • Is there a maintenance plan, and is the sinking fund healthy?
  • How is the strata manager appointed and paid?
  • Are there any pending disputes or major repair works?

Your settlement agent or conveyancer can help you review the scheme documents, and a good local agent will know how particular buildings have been run over the years.

How to Have Your Say on the Strata Reforms

The Phase Two consultation is open for six weeks, closing on 26 November 2026. Submissions are made through Landgate’s website.

The reform proposals were informed by more than 1,600 responses received during Phase One. Phase Two now asks for feedback on 22 reform topics covering governance, transparency and flexibility in schemes.

StepWhat to do
1Visit Landgate’s five-year review page for the Act
2Read the Phase Two Discussion Paper
3Focus on the topics that affect your building or portfolio
4Submit your feedback before 26 November 2026

If you own an apartment, sit on a strata council or manage rentals in apartment buildings, your input is exactly what the review is looking for. Feedback received in this phase helps shape the final recommendations.

A Quick Look Back at the Strata Review Timeline

The current review follows major reforms that began in 2020. The Act requires a statutory review, and the process has run in two phases.

StageWhat happened
2020Wide-ranging reforms to WA strata law begin
October 2024Phase One consultation focuses on identifying issues
Phase One themesCost controls, enhancing strata living, strata manager practice and standards
October 2026Phase Two Discussion Paper released with 22 reform topics
26 November 2026Phase Two submissions close
After consultationFinal recommendations developed; legislative timetable still to be confirmed

The key point is that nothing has changed in law yet. These are proposals for discussion, and the final shape of the reforms may look different after feedback is considered.

Frequently Asked Questions About the Proposed Strata Changes

Can owners ban Airbnb in a strata complex right now?

Yes. At present, a complex can restrict Airbnb-style stays through a bylaw. The proposed change would require new complexes to decide early and lock that decision in.

Does the proposal apply to my existing apartment?

As reported, the proposal targets new complexes. If you own in an established building, your current bylaws continue to apply unless the final legislation provides otherwise.

Will individual owners be able to start an Airbnb later?

The Minister has confirmed that an owner would be able to decide to transition their apartment to an Airbnb later on. The exact mechanics will depend on the final legislation.

Is this law already in force?

No. The proposals are part of a public consultation. Submissions close on 26 November 2026, and any changes would need to go through the legislative process.

Where can I read the full proposals?

The Phase Two Discussion Paper and feedback form are available through Landgate’s five-year review page for WA strata law.

Thinking About Buying or Selling an Apartment? Talk to Holdsworth Real Estate

If you own or are considering an apartment in Perth, understanding how short-term rental rules could affect your building is more important than ever. Whether you are weighing up a sale, wondering how your complex’s bylaws could influence value or looking for a current appraisal, our team can walk you through your options.

Contact Holdsworth Real Estate today to talk through what the proposed strata changes could mean for your property, your investment and your next move.

This article is general information only and is not legal or financial advice. Speak to a licensed professional about your circumstances.