Short-term lets in Perth: Regulations, pros & cons, and property management services



The Insider @ Houst
Last updated on
May 2, 2023

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Short-term lets in Perth: Regulations, pros & cons, and property management services

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Perth has become a hotspot for short-term letting in Western Australia for a number of reasons. The liveliness and the highest tourist ratio make it an ideal place for making additional money as a passive income. Although there are other ways to source your residual income, short-term rental business is a great way to make money without any investment. 

In Perth, you need to comply with local laws and short-term lets regulation to ensure the safety of the community and letting parties. To avoid any offense, complying with these rules becomes easy and affordable. It is possible only when you know about the local laws in your city or state. 

Many people become confused either they should invest in short-term rentals or long-term rentals. So, in this blog, we will discuss short-term lets in Perth along with the Houst property management services in Perth. Moreover, we will discuss the pros and cons of short-term lets and long-term lets in Perth. 

Table of Contents

Short-Term Lets in Perth

Perth is a home to many short-term lets due to the lenient and favourable laws for tenancies. As a result, many investors and landlords switch their investments towards short-term rental accommodations. The frequency of hosting a visitor in Perth is higher and many people find it attractive to make arrangements for them in return of money. 

According to an Airbtics report in 2022 by Perth, This city has 67% occupancy rate with an annual revenue of A$31, 147. The same report stated that the nightly rate of short-term rentals is very attractive and stands at A$117. 

According to the Special Residential (Serviced and Short Term Accommodation) Policy, the short-term letting has been defined as a short-term accommodation:

“Means accommodation that may be occupied for a continuous maximum period of three months within any one 12-month period, and are not subject to residential tenancy agreements (residential leases).”

So, we can say that short-term rentals provide immense opportunities along with convenience in terms of regulations to initiate your letting project in Perth, West Australia.

Besides, there are many new short-term letting regulations under consideration which will be completed by the mid of 2023. These regulations are likely to limit the number of days to sixty days in a year. Moreover, the hosted premises would not be required to acquire a planning permit from 

Short-Term Letting Vs. Long-term Letting

Growing number of short-term rentals in Australia is, undoubtedly, providing various benefits to the renters and the guests. Many people suspect that the short-term rentals are replacing the long-term rentals, ultimately worsening the housing crisis in major states of Australia, including Western Australia.

Both types of rentals have advantages and disadvantages. The renters can evaluate their options and choose the right type of rental accommodation business. Besides, the state laws and local councils need to speed up the work on curtailing the imbalance between short-term and long-term letting accommodations. 

The rental rates have skyrocketed in recent years in Australia. The reason is the unavailability of long-term rentals in the center of cities. Does it point out that long-term rentals are unprofitable? Let’s discover!

Short-Term Rentals: Pros

  1. Relatively higher and Quick Income: The long-term rentals provide the best opportunities for creating a stable source of passive income. Moreover, the short-term rental income is quick to get by accepting and hosting guests for the maximum number of days allowed in local law.
  2. Property Use is Flexible: The host can use his premise with flexibility as and when desired. He can use his property for personal use or for hosting according to his needs.
  3. Less Tenancy Issue: Unlike long-term tenancy, short-term rental accommodations have lower risk of tenancy issue, For example, the unpaid rents, property damage and any kind of violence due to the smaller number of days and weeks available to a guest.

Short-Term Rentals: Cons:

  1. Management is Cumbersome: The management of the Short-term accommodation is cumbersome for the host. His all-time presence during a guest’s accommodation makes the maintenance and cleanliness more important. Moreover, the proper check in and checking out also requires the presence of the host in primary residencies. 
  2. Seasonal Demand: The short-term rentals are favourable when the occupancy rate is relatively higher than other months of the year. During the peak months when places are packed with tourists, the short-term rental business thrives.
  3. Market Forces: Market forces play a significant role by affecting the demand and supply of short-term rentals. As a result, the uncertain events can lead to lower demand, excessive or short supply.

Long-Term Rentals: Pros:

  1. Stable Income: Long-term tenancy provides stable income and you don’t need to deal with a new tenant every day or every week.
  2. Less Flexibility: The business of long-term rentals is more attractive for those wishing to indulge themselves in lower management issues. On the other hand, all you need to do is provide instructions to the tenants for the maintenance and cleanliness of the premises.
  3. Lower Tenancy Turnover Rate: The tenants, typically, stay for a longer period. As a result, the occupancy rate of tenant turnover is lower in long-term letting accommodations.

Long-Term Rentals: Cons:

  1. Lower Rental Income: The inflexibility according to the changing dynamics makes the long-term rental income less attractive. So, landlords find it more difficult to lease their property for long-term accommodations.
  2. Higher Tenancy Issues: Higher tenancy issues are more commonly to appear and create problems between landlord and tenant for violation of certain laws and code of conducts.
  3. Comparative Cost is Higher: The comparative cost is higher in long-term rental accommodation because the property cannot be used for other uses like short-term rentals during peak rental demand for short stays.

Short-Term Lets Regulations in Perth

Short-term rentals demand certain state and local regulations in Perth. However, they are convenient to follow and abide by. To avoid any penalty, you must ensure there’s no serious offence caused at your property and neighbourhood to ensure a safe living experience. 

So, let’s discuss each of these short-term letting regulations!

Planning Approval: As the owner of the property, the host must ensure that he has got the planning approval from the local council, like The City of Perth. Otherwise, the host won’t be able to advertise and let his property as a short-term stay in Perth.

Building Regulations: Proper and complete installation of fire safety equipment must be ensured by the host with clear instructions given to the guest for the safety of the parties, neighbourhood and the property. The design of the building must facilitate the persons with disabilities, as mentioned in Disability Discrimination Act.

A reception area with a dedicated parking space is another requirement in apartment buildings.

Neighbourhood Regulations: The hosts and guests must follow the neighbourhood and building regulations. For example, they must avoid the noise, loud parties and any kind of violence at the short-term letting premise. Multi story building must comply with Australian Standard 1670 in this regard.

Insurance Regulations: The host is required to hold insurance of the short-term letting premise during the occupancy period of guests only. This insurance of property ensures coverage against any kind of potential damage and loss.

Health Regulations: The host must ensure the cleanliness and maintenance of property by providing the proper cleaning services before the arrival and after the departure of the guest. So, it’s essential that you are fully aware of the health regulations in Perth.

Number of Units: According to Planning Policy Manual 3.9, the owner can rent out only one unit for each of the twenty units. For the residential units between 21 and 45, the short-term rental units are set at two units only. However, for each additional 30 units, the number of short-term rentals will be increased by one additional unit.

Tourism Levy: Tourism Levy in Perth requires the hosts to pay a certain amount of levy as tourism levy. The City of Perth will collect this levy from the hosts who have listed their business on Airbnb and Stayz. For detailed information on short-term letting taxation in Australia, read this guideline on Airbnb tax guidelines in Australia.

Penalty for Breaching Short-Term Letting Regulations

Any violation of short-term leasing will most probably bring you heavy fines and penalties. For example, failing to comply with the fire safety measures, the landlords will have to pay a liability. Some of these laws have been amended as it has been mentioned in New Residential Tenancy Laws.

The subletting in Australia is not preferable due to the no written consent between the owner and the tenant. As a result, landlords and tenants avoid subletting in most parts of Australia. 

Professional Property Management Service Provider – Houst

As a property owner, you may find it challenging to manage your rental business and provide guests with timely responses and excellent service. Additionally, you may not be familiar with the local laws and regulations, making it challenging to manage your rental premises. However, with Houst, you can ensure that your business remains operational while receiving professional management services.

Here are some of the services that Houst can offer you:

  1. Exceptional Hosting Services 

Houst offers professional hosting services in Sydney, ensuring that your guests receive immediate responses and quality service. The friendly hosts provide guests with instructions about the premises and local regulations, while managing their check-in and check-out time. By providing guests with excellent hosting services, your rental profile is more likely to receive positive reviews, increasing your credibility and revenue.

  1. Listing of Short-term Lets 

Listing your short-term letting building on different platforms can be challenging, especially when each platform has different policies and regulations. Houst's dedicated team is knowledgeable about hosting policies and regulations, ensuring that your rental premises meet local requirements. By listing your short-term letting building on various hosting platforms like Airbnb, StayZ, and, you can gain maximum revenue.

  1. Business Performance Tracking 

Houst offers organised and interactive dashboards that provide key insights and tools to track your business's performance. You can quickly view guests, revenue, and reviews in one place, making it easier to keep track of your rental business.

  1. Proper Maintenance of Rental Property 

Proper cleanliness and maintenance of short-term lets are mandatory by law. Houst can help ensure the proper cleaning and maintenance of your rental property, avoiding any violations that could result in dire consequences. By taking photos of the rental premises before and after guests arrive, Houst can offer you accurate record-keeping services on cleaning and maintenance.

Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Perth team to uncover your property’s revenue potential.

The Bottom Line

Finally, we conclude that The City Perth will have new amendments to the regulations for short-term accommodations in West Australia. As a result, we can expect a cap on the number of days and planning permits. As of now, the planning permit is required to obtain for every host. On the other hand, the regulations are different for building, health, insurance and tax. So, you must be aware of all of these sources to take more advantage of your letting business in Perth. Otherwise, you won’t be able to get the maximum annual income from short-term letting accommodations in Australia.

Houst can save your time and energy in this regard by offering you the best-in-class and round-the-clock services. With their expert advice, you can take your revenues to the next level with less management and more control. 

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

The Insider @ Houst

The Insider @ Houst

The Insider team provides up-to-date and relevant information on short-term rentals to help navigate the world of short lets. If you're interested in publishing your content, please get in touch with us at

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