Short-term rental regulations and Airbnb rules 2025: What Perth landlords must know now

Perth's short-term rental market is entering a new era of regulation. As vacancy rates hover below 1 per cent and median property prices climb toward $680,000, councils across the metropolitan area are tightening rules on Airbnb operations and holiday lets—a shift that could reshape investor strategies across booming suburbs like Joondalup, Wanneroo, and inner-city precincts.

The Department of Planning has clarified that short-term rental accommodation—typically defined as letting for fewer than 90 consecutive days—now requires planning approval in most local authority areas. Perth City Council, Subiaco, and Nedlands have implemented mandatory registration schemes, while Joondalup City Council has adopted stricter development assessment criteria. Landlords who operate unregistered holiday lets face fines ranging from $2,000 to $10,000, with potential prosecution for persistent breaches.

"The regulatory environment has hardened considerably," says Maria Castellano, residential property analyst at Perth Real Estate Institute. "Councils want visibility of the short-term rental stock and control over neighbourhood amenity. That's driving compliance costs up and yields down for some operators."

Key changes across 2025 include: mandatory owner-occupancy in certain zones (notably around South Perth and Kings Park); caps on the number of rental days permitted annually—often 180 days—in residential areas; and stricter neighbour notification requirements. Properties in mixed-use zones near the CBD and entertainment precincts, such as around Northbridge and East Perth, generally face fewer restrictions.

For investors holding properties valued at the WA median or above, the compliance cost-benefit analysis is shifting. A $750,000 apartment in Perth's inner ring can generate $35,000–$50,000 annually from short-term rental, but regulatory compliance, insurance premiums, and potential council enforcement now eat into margins. Professional management of registered properties has become the safer model, though it reduces net yields by 25–35 per cent.

The fast-growing northern corridors—Joondalup, Wanneroo, and Yanchep—present a patchwork of rules. Some northern suburbs remain permissive, while others are moving toward stricter caps, reflecting community concerns about transient populations and housing stock preservation.

Perth property owners should verify their local council's current planning scheme and contact their local authority before listing. Non-compliance is no longer a grey area. Registration is free in most jurisdictions, but the window to register existing operations remains open only through September 2025 in several councils. After that date, unregistered operators risk enforcement action.

For investors weighing medium-term rental income against long-term asset stability, Perth's regulatory hardline is worth factoring into acquisition and management decisions now.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.