Busselton Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Busselton, Australia?

Busselton, a popular tourist destination in Western Australia, has implemented some of the strictest regulations for short-term rentals in the country. These rules aim to balance the economic benefits of tourism with preserving the quality of life for local residents. Here's an overview of the key short-term rental regulations in Busselton:

Starting a Short-Term Rental Business in Busselton

To legally operate a short-term rental in Busselton, property owners must:

• Obtain development approval from the City of Busselton. This approval remains valid for the life of the property, even if ownership changes.
• Register the property annually with the city and pay the applicable fees. Registration must be renewed every 12 months and is automatically canceled if the property is sold. New owners can apply for a new registration without needing to re-apply for development approval.
• Comply with the Holiday Home Local Law, which sets out requirements for property management, occupancy limits, parking, and more.
• Display a sign with the manager's contact details that is visible from the street so neighbors can easily report any issues.

Those are the basic steps an investor has to take if they are aspiring to start a short-term rental business such as Airbnb in Busselton.

Short-Term Rental Licensing Requirement in Busselton

All short-term rentals in Busselton must be licensed with the city. This involves a two-step process:

1. Development Approval: Property owners must submit a development application to the City of Busselton. The application is assessed against the city's Local Planning Scheme and Holiday Home Local Planning Policy. This approval remains valid for the life of the property, even if ownership changes.
2. Registration Approval: Once development approval has been granted, the property owner must apply for registration approval. This process is guided by the Holiday Home Local Law, which sets out requirements for property management, occupancy limits, parking, and more. Registration must be renewed annually and is automatically canceled if the property is sold. New owners can apply for a new registration without needing to re-apply for development approval.

The City of Busselton's website states:

"An approval is required, through a two-step process: Development approval and Registration approval. The City's holiday home regulatory framework has been developed by taking into account over-arching State law and policy."

One local property manager shared their experience on a BiggerPockets forum:

"We manage about 100 properties in the City of Busselton, and have been very happy with the changes. From a professional short-stay accommodation property management business perspective, these all make good sense to us. The development approval process ensures the property is suitable for short-term rental use, while the annual registration helps the city keep track of active rentals and enforce the rules."

Failure to obtain the proper licensing can result in fines and other penalties. The city has dedicated staff who actively monitor short-term rental listings and investigate properties suspected of operating without approval.

While the licensing process may seem daunting, it's an essential step to legally operate a short-term rental in Busselton. Hosts should allow ample time to navigate the approval process before welcoming their first guests. Working with a local property manager or consultant familiar with the city's requirements can help streamline the process.

Required Documents for Busselton Short-Term Rentals

To apply for a short-term rental license in Busselton, property owners must provide several key documents:

1. Development Application Form: This form, available from the City of Busselton, is used to request permission to use a property as a short-term rental. It must be completed and submitted along with the required supporting documents.
2. Site Plan: A detailed site plan showing the location of the property, parking areas, outdoor spaces, and any other relevant features is required. This helps the city assess the suitability of the property for short-term rental use.
3. Floor Plans: Floor plans must be provided showing the layout of the property, including the number and location of bedrooms, bathrooms, and common areas. These are used to determine the maximum occupancy allowed.
4. Property Management Plan: Applicants must submit a comprehensive property management plan outlining how the short-term rental will be managed. This should include details on cleaning and maintenance, guest screening and communication, and complaint-handling procedures.
5. Code of Conduct: A written code of conduct for guests must be provided, outlining expectations around noise, parking, trash disposal, and other key issues. This code must be prominently displayed in the rental property.
6. Parking Plan: If on-site parking is available, a parking plan must be submitted showing the number and location of spaces allocated for guest use.
7. Bushfire Emergency Evacuation Plan: For properties located in bushfire-prone areas, an emergency evacuation plan must be provided detailing procedures for safely evacuating guests in the event of a fire.
8. Consent from Strata Company (if applicable): If the property is part of a strata-titled complex, written consent from the strata company approving the use of the property as a short-term rental is required.
9. Application Fee: A non-refundable application fee must be paid at the time of submission. As of 2023, the fee is $295.

Once all required documents are submitted, the City of Busselton will review the application and make a determination on the property's suitability for short-term rental use. If approved, a registration certificate will be issued, which must be displayed on the property along with the code of conduct and property manager contact details.

It's important to note that obtaining development approval and registration is an ongoing process. Registration must be renewed annually, and any changes to the property or management plans must be promptly communicated to the city. Failure to comply with these requirements can result in fines or revocation of the short-term rental permit.

Busselton Short-Term Rental Taxes

Short-term rental income in Busselton is subject to taxation, just like any other rental income. Owners must comply with federal and state tax obligations, as well as any local levies.

At the federal level, short-term rental income must be declared on the owner's annual tax return. The Australian Taxation Office (ATO) considers this income as assessable and subject to marginal tax rates. Owners can claim deductions for expenses directly related to earning the rental income, such as property management fees, cleaning costs, and a portion of utility bills.

The ATO has been cracking down on undeclared short-term rental income in recent years. In 2019, they announced they would be using data matching to identify taxpayers who have left out rental income and capital gains from their returns. This includes information from online platform-sharing sites like Airbnb.

At the state level, short-term rentals in Busselton may be subject to land tax if the property is not the owner's primary residence. In Western Australia, land tax is an annual tax based on the total taxable value of all land owned by an individual or company. As of 2023, the land tax rate ranges from 0.25% to 1.67%, depending on the property's value.

The City of Busselton does not currently impose any specific taxes or levies on short-term rentals. However, all properties are subject to council rates, which contribute to local services and infrastructure. Short-term rental properties may be charged commercial rates, which are higher than residential rates if the property is not the owner's primary place of residence.

It's important for short-term rental owners in Busselton to keep accurate records of all income and expenses related to the property. Working with a qualified tax professional can help ensure compliance with all applicable tax laws and maximize allowable deductions.

Failure to properly declare short-term rental income can result in penalties and interest charges from the ATO. In serious cases, owners may even face criminal charges for tax evasion.

As the short-term rental market continues to grow in Busselton and across Australia, it's likely that taxation authorities will place increasing scrutiny on this sector. By staying informed and compliant, owners can minimize their risk and focus on providing high-quality accommodation to guests.

Australia Wide Short-Term Rental Rules

In addition to state and local regulations, there are some nationwide rules that apply to short-term rentals across Australia:

1. Building and Safety Standards: All short-term rental properties must comply with the Building Code of Australia, which sets out minimum requirements for building safety, health, and amenity. This includes provisions for fire safety, disability access, and structural integrity. Hosts are responsible for ensuring their properties meet these standards.
2. Public Liability: Under Australian law, property owners have a duty of care to ensure the safety of anyone entering their premises. This means short-term rental hosts can be held liable if a guest is injured due to a defect or hazard on the property. It's recommended that hosts have adequate public liability insurance to protect themselves in case of any claims.
3. Goods and Services Tax (GST): If a host's annual turnover from their short-term rental exceeds $75,000, they must register for and collect GST at a rate of 10% on the rental fee. This applies to both hosted and un-hosted properties. Hosts should consult with a tax professional to ensure they are meeting their GST obligations.
4. Discrimination Laws: Australia's anti-discrimination laws prohibit hosts from refusing accommodation to guests based on attributes such as race, age, disability, or sexual orientation. All guests must be treated equally and fairly in the provision of short-term rental services.
5. Upcoming National Registration Scheme: The Australian government is currently considering implementing a nationwide registration scheme for short-term rental properties. This would require all hosts to register their property with a central database, which could be used by state and local authorities for compliance and enforcement purposes. The details of this scheme are still being developed, but it's expected to be rolled out in the coming years.

While these national rules provide a baseline for short-term rental operations, hosts must also be aware of the specific regulations in their state and local area. The short-term rental landscape in Australia is complex and evolving, so it's crucial for hosts to stay informed and seek professional advice to ensure they are fully compliant.

Does Busselton Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like BiggerPockets and Reddit, Busselton takes a firm approach to enforcing its short-term rental regulations compared to many other cities in Australia. The city has devoted significant resources to identifying and penalizing unregistered rentals, and hosts who fail to comply with the rules face serious consequences.

One host on the r/AustraliaInvestment subreddit shared their experience:

"I used to manage a few Airbnbs in Busselton but had to stop because the city was cracking down hard. They have staff constantly monitoring the listings and cross-referencing with their registration database. Got hit with some hefty fines for minor infractions. Not worth the risk anymore, in my opinion."

Another host on BiggerPockets wrote:

"Busselton is definitely not as Airbnb-friendly as it used to be. The new regulations are no joke - mandatory signage, 24/7 contact response, limits on guests and cars. And they're actually enforcing it, unlike some other cities that have rules on the books but turn a blind eye. I know several hosts who have been deregistered for violations."

While some hosts continue to operate short-term rentals in Busselton despite the strict rules, they do so at their own peril. The city's proactive enforcement means the risk of getting caught and facing penalties is much higher than in areas with more lax oversight.

A former Busselton Airbnb operator on Reddit explained why they decided to switch to long-term tenants:

"It's just not worth playing cat and mouse with the city anymore. I was constantly stressed about getting busted. Sure, I might make a bit less money with a long-term rental, but at least I can sleep at night without worrying about a knock on the door from bylaw officers."

So, in summary, Busselton is decidedly less Airbnb-friendly than many other Australian destinations. While short-term rentals can still be found in the city, hosts face an uphill battle to comply with the stringent regulations and evade detection by enforcement staff. Operating under the radar is a very risky proposition. For most hosts, the juice simply isn't worth the squeeze in Busselton's current regulatory environment.

How to Start a Short-Term Rental Business in Busselton

Starting a short-term rental business in Busselton can be a lucrative venture, but it's crucial to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a step-by-step guide:

1. Research local regulations: Familiarize yourself with Busselton's specific short-term rental rules, such as the requirement to obtain development approval and register your property annually. Consult with the City of Busselton's Planning Department and Environmental Health Department to ensure you understand all applicable laws.
2. Choose your property: Identify a suitable property for short-term rentals in Busselton. Consider factors like location, size, amenities, and target market. If you already own a property, assess its potential for short-term rentals.
3. Obtain development approval: Submit a development application to the City of Busselton to change the use of your property from residential to holiday home. This approval remains valid for the life of the property, even if ownership changes.
4. Register your property: Apply for a Holiday Home Registration with the City of Busselton. Registration must be renewed annually and is automatically canceled if the property is sold. Display your registration certificate prominently on the property.
5. Prepare your property:Furnish and equip your rental property to meet guest expectations and local safety requirements. Consider essential amenities, occupancy limits, parking, and emergency plans. Invest in professional photography to showcase your property's best features.
6. Arrange property management: Decide whether you will manage the property yourself or hire a professional property management company. Ensure you or your manager are available to respond to guest inquiries within 12 hours and live within a 30-minute travel time from the property.
7. Obtain necessary insurances: Protect your investment with appropriate insurance coverage, such as landlord insurance, public liability, and short-term rental insurance. Consult with a local insurance broker to determine the best policies for your situation.
8. Create your listing: Set up your property listing on popular short-term rental platforms like Airbnb and VRBO. Craft a compelling description, highlight unique selling points, and set competitive rates based on market research. Ensure your CIR registration number is displayed on all listings.
9. Implement guest screening and communication processes: Establish clear communication channels with guests and develop a thorough screening process to ensure the safety and security of your property and neighborhood. Provide guests with a detailed rental agreement outlining house rules, local regulations, and emergency contacts.
10. Comply with tax obligations: Register for an Australian Business Number (ABN) and understand your tax obligations, such as declaring rental income and collecting GST if applicable. Keep accurate records of all income and expenses related to your short-term rental business.
11. Maintain your property: Implement a regular cleaning and maintenance schedule to keep your property in top condition. Conduct thorough inspections between guest stays and address any issues promptly to ensure a high standard of accommodation.
12. Monitor your performance: Regularly review your occupancy rates, guest reviews, and financial performance. Adapt your pricing strategy, marketing efforts, and property improvements based on feedback and market trends to optimize your short-term rental business.

By following these steps and staying informed about local regulations, you can successfully launch and operate a short-term rental business in Busselton. Remember to prioritize guest satisfaction, neighborhood relations, and regulatory compliance to ensure the long-term success of your venture.

Who to Contact in Busselton about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning requirements in Busselton, here are the key city departments to contact:

1. City of Busselton Planning Services

Phone: (08) 9781 0444
Email: city@busselton.wa.gov.au

The Planning Services department handles development approvals for short-term rentals and can provide information on zoning restrictions and the Holiday Home Local Planning Policy.

2. City of Busselton Environmental Health Department

Phone: (08) 9781 0471
Email: health@busselton.wa.gov.au

The Environmental Health Department oversees the annual registration process for holiday homes and ensures compliance with the Holiday Home Local Law. They can assist with questions about occupancy limits, parking requirements, and other registration conditions.

3. City of Busselton Rates Department

Phone: (08) 9781 0444
Email: city@busselton.wa.gov.au

For inquiries related to property rates and how they may be impacted by operating a short-term rental.

In addition to these city departments, short-term rental operators can also seek guidance from local industry groups and property management companies experienced in navigating Busselton's regulations:

4. Margaret River Busselton Tourism Association (MRBTA)

Phone: (08) 9780 5911
Email: welcome@margaretriver.com

MRBTA is the region's peak tourism body and can provide advice and advocacy for short-term rental operators.

It's important to note that Busselton's short-term rental regulations are subject to change, particularly in light of the upcoming statewide registration scheme being developed by the Western Australian government. Owners and operators should stay in close contact with the above resources to remain informed of any regulatory updates that may impact their business.

By working proactively with the City of Busselton and local industry stakeholders, short-term rental operators can ensure they are operating legally and responsibly while contributing positively to the region's vibrant tourism economy.

What Do Airbnb Hosts in Busselton on Reddit and Bigger Pockets Think about Local Regulations?

To gauge the sentiment of Airbnb hosts in Busselton regarding the local short-term rental regulations, here are some insights gathered from discussions on Reddit and Bigger Pockets:

Several hosts on the r/Busselton subreddit mentioned that while the city's rules are clear, enforcement is quite strict compared to other areas. One host shared:

"The city is really cracking down on unregistered rentals. They have staff dedicated to finding listings that don't display a valid registration number. I know a few hosts who got caught and had to pay hefty fines. It's not worth the risk of operating under the radar here."

On the Bigger Pockets forums, some Busselton hosts expressed that while they understand the need for regulation, the process can be time-consuming and costly. One host noted:

"Getting development approval and then the annual registration isn't cheap or easy. I had to provide a ton of documentation and make some upgrades to my property to meet all the requirements. It's a lot of hoops to jump through, but I guess it's the cost of doing business here."

With the city considering restricting short-term rentals in certain residential areas, some hosts on Reddit are worried about the long-term viability of their investments. An r/Busselton user commented:

"I specifically bought in a neighborhood that allows holiday homes because I wanted the option to do short-term rentals. If they change the zoning to ban Airbnbs in my area, that will really hurt my property value and income potential. I hope they grandfather in existing approved rentals if they do make changes."

On the flip side, some hosts on both platforms expressed support for Busselton's regulations, saying they help ensure a level playing field and maintain neighborhood character. A Bigger Pockets user shared:

"I actually appreciate that Busselton has clear rules and enforces them consistently. It means everyone is operating above board and following the same standards. In other cities, you have a lot of illegal rentals that don't pay taxes or follow any rules, which hurts those of us doing things the right way."

Overall, the sentiment among Busselton hosts seems to be one of acceptance of the regulations, even if they find them burdensome at times. Most view compliance as simply part of the cost of doing business in the local short-term rental market. However, there are concerns about the impact of future rule changes, particularly any zoning amendments that could prohibit holiday homes in certain areas. Hosts are keeping a close eye on the regulatory landscape while striving to operate within the current framework.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.