The incentive was announced as part of a STRA (Short Term Rental Accommodation) Scheme which aims to address the rental supply shortage in WA.
The scheme provides a $10,000 incentive payment for property owners who offered short-term rental accommodation before 9 November 2023, but are now willing to transition to a minimum 12-month long-term tenancy
While concerned the incentive isn’t substantial enough to motivate STRA owners, Realmark Urban’s Gabe Hagen recommends these funds be allocated and leveraged to ensure maximum return over an extended period of time.
“Realmark Urban has the expertise and experience when it comes to converting short-term accommodation to long-term rentals, so we can ensure a hassle-free process,” he said.
“My advice to those who qualify is to use the government bonus to enlist expert property management with experience in managing investment portfolios for maximum return. At Realmark Urban, we focus on asset growth as well as rental yield and it’s important to take these longer-term factors into consideration.”
“It’s worth noting that the incentive payments are split, with $4,000 delivered as an initial payment and the balance paid out once the property has been tenanted for 12 months – so consulting an expert to appropriately allocate and manage these funds is certainly advised.”
There are strict criteria in place to be eligible for the funds supplement, including the short-term rental must have been listed on an accommodation site such as Airbnb for at least six weeks prior to application.
The scheme also has maximum rent charges in place, aimed to assist with affordability for new long-term tenants.
“I'm concerned the rent caps could lead to owners turning down this opportunity if their rental property value exceeds these limits,” said Mr Hagen.
“While we understand the challenges being faced by tenants, the overall growth of rent prices will only be reduced by increased supply.”
With the current demand and backing of a long-standing firm like Realmark, investors can confidently explore the opportunities available within WA to ensure they are making well-informed decisions that could impact their return on investment.
For more information contact Gabe Hagen, the Urban Business Development Manager or Emma Thorpe the Associate Director of Property Manager of Realmark Urban on 9388 3911.
Disclaimer: This information is general in nature. Realmark does not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.