The $5 million scheme offers payments to owners who lease vacant properties for at least 12 months
The Real Estate Institute of Western Australia (REIWA) expressed strong support for the Cook government’s Vacant Property Rental Incentive Scheme, which encourages the use of vacant properties as long-term rentals.
In an effort to alleviate the strain on the rental market, the Cook government recently introduced the scheme, offering a $5,000 payment to property owners who commit to renting out their unused properties for at least one year.
REIWA chief executive Cath Hart (pictured) said the initiative draws parallels with the earlier success of the Short-Term Rental Accommodation (STRA) Incentive Scheme.
“We expect this new incentive to encourage some vacant property owners to make their homes available as much-needed long-term rentals,” she said. “With the vacancy rate at a record low of just 0.4%, and listings for rent sitting at around 2,000, any initiatives that will put a roof over more people’s heads are very welcome.
“We appreciate that the government hasn’t taken a punitive approach to this issue as not all vacant properties can be transitioned to the long-term rental market, for example they may be undergoing redevelopment or renovation, so punitive measures such as taxes or vacancy fees would be unfair.”
To qualify for the incentive under the Vacant Property Rental Incentive Scheme, properties must have been vacant for at least six months leading up to May 2024, be self-contained with private kitchen and bathroom facilities, and not have previously benefited from the STRA scheme. Property owners must maintain the lease for the full 12-month period, with a requirement to re-let the property within six weeks should the lease be terminated early, to avoid repayment of the incentive.
Further bolstering housing policies, the government has extended the STRA scheme until November 2024.
“Housing supply is the greatest challenge facing the market at the moment, and in assessing housing policy, the big question is whether it will increase the number of homes that can be built, bought or rented,” Hart said.
“We acknowledge the extensive measures the government is using to address all aspects of boosting housing supply, from this new initiative and the extension of the short-stay scheme to the additional investment in social housing and building and construction apprenticeship and training opportunities.”
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