Government Proposal Offers $10,000 Incentive for Airbnb Owners to Transition to Long-Term Rentals Amid Australia's Rental Crisis

In response to the growing rental crisis in Australia, the government has introduced a groundbreaking incentive program aimed at Airbnb property owners. With the rental market under strain due to increasing demand and limited availability, the proposed initiative seeks to encourage a shift from short-term rentals to long-term leases, thereby expanding the housing options for residents in need.

The heart of the proposal revolves around offering a substantial $10,000 incentive to Airbnb property owners who choose to convert their short-term rental units into long-term accommodations. This move aims to bolster the availability of rental properties in Perth, addressing the pressing issue of affordability and accessibility for those seeking stable, long-term housing solutions.

The escalating demand for housing in Australia, coupled with the popularity of short-term rental platforms like Airbnb, has significantly reduced the number of properties available for long-term leasing. This scarcity has contributed to skyrocketing rental prices, making it increasingly challenging for many residents to secure affordable housing.

By incentivizing property owners to transition their Airbnb listings into long-term rentals, the government hopes to alleviate the strain on the rental market, providing more options for individuals and families searching for permanent housing arrangements. This initiative aims to strike a balance between the thriving tourism sector and the pressing need for stable housing in Perth.

However, while the intention behind the $10,000 offer is to stimulate a shift toward long-term rentals, I expressed doubts about its effectiveness during a recent segment on 6PR radio with Gary Adshead. In my opinion, this incentive might not be enticing enough for investors, considering they can potentially rake in profits of up to $130,000 from their Airbnb properties. My perspective stems from the belief that a more impactful solution may lie in imposing higher taxes on these short-term rental properties, thereby compelling a more substantial transition to long-term leasing.

As discussions continue, it remains crucial for policymakers to consider various perspectives and explore comprehensive strategies to address the housing challenges in Australia.

Paulette Contessi 

Director/Licensee

CONTESSI PROPERTIES