Perth rental market: Government extend cash incentive to encourage Airbnb owners to convert homes to rentals

Cash incentives to lure short-stay property investors to convert their homes to rentals are being extended for another six months, it can be revealed. The State Government has hailed the success of the $10,000 carrot for short-term rental accommodation that was taken up by the owners of 457 properties, beating the initial target of 400. A $5000 bonus for vacant rentals added an additional 249 properties to Perth’s tight rental market, but was under-subscribed paying out about a quarter of the $5 million that was set aside for up to 1000 homes. “These are innovative policies that have delivered a big boost to the long-term rental stock,” Treasurer Rita Saffioti said. “Adding more than 700 homes is a fantastic outcome. “Ensuring all Western Australians can access a secure housing is a priority for our government and these initiatives will provide even more housing opportunities for people to find a home.” Both grants require owners to sign leases for a minimum 12 months, and were launched when Perth’s rental vacancy rate reached record lows, falling to 0.4 per cent in March of 2024. The vacancy rate increased to 2.5 per cent this year, according to the Real Estate Institute of WA, which is at the bottom end of the range that is considered balanced. Grant applications were due to close on Monday, but the schemes are instead being extended until December or until funding is exhausted. “The STRA and VPR incentive schemes are directly unlocking more homes for Western Australian renters,” Commerce Minister Tony Buti said. “By extending these two key schemes, we’re confident we can keep providing more housing options across the State.”