Rate hike looms for Broome AirBnB owners

Rate hikes, large fines and development approvals will be implemented in Broome to crack down on the proliferation of AirBnBs which are heaping pressure on the tourist town’s crippling rental squeeze.

Under planning changes approved this week by the state government a new land use will be carved out for holiday homes which will require current and future owners to gain approval to operate or face a fine of up to $200,000.

Unregistered short-stay owners will be given a six-month grace period to gain approvals before compliance notices are dished out.

Shire of Broome president Desiree Male said the changes would level the playing field for other accommodation providers.

“Accommodation providers like hotels and caravan parks have argued that short-stay accommodation providers have an unfair advantage, given the disparity in rates paid by the two options,” she said.

“Then there is the rental shortage in Broome (and across WA), which isn't made any easier by unregulated short-stay accommodation in our town.

“Applying higher rates to approved Holiday Houses is appropriate as the level of service given to Holiday Houses will be higher than the services provided to standard residential properties.”

AirDNA data showed the Kimberley town had 221 active short-stay listings in August going for an average of $473 a day, 82 per cent of which were entire homes.

By comparison 34 homes were currently available for rent at an average price of $700 per week, representing a vacancy rate of 0.35 per cent.

The Shire of Broome is the latest WA local government to pursue its own crackdown on short-stay accommodation while waiting for the state government to implement reforms to the sector.

The Shire of Denmark charges a 30 per cent rates premium on holiday homes which it says is to cover the extra impact of such properties on infrastructure, environment, housing availability and affordability.

Busselton has introduced night curfews, vehicle numbers and pet rules on short-stay homes which allow the City to deregister non-compliant premises.

Margaret River’s short-stay policy implements an initial one-year approval whereby if verified complaints are made, long-term approval is unlikely to be granted.

It also places limits on where short-stay premises can operate and the types of dwellings able to be used.

A housing report compiled for the Shire of Esperance and Goldfields Esperance Development Commission last week recommended the shire pursue its own short-stay policy in the absence of clarity over when state laws would be implemented.

The City of Albany and Shire of Augusta Margaret River are among local governments which have opted to wait for further detail on state government reforms, with the latter urging freedom for local governments to design their own rules.

A parliamentary probe into the short-stay sector tabled its report in late 2019 and policy was drafted up by the WA government in December 2021 to introduce a statewide register and local planning permission requirements.