Hosted vs. Unhosted STRA: What Homeowners Need to Know

Hosted vs. Unhosted STRA: What Homeowners Need to Know

With the introduction of new regulations for short-term rental accommodations (STRA) in Western Australia, it's essential for property owners to understand the distinction between hosted and unhosted STRA. Each type has specific requirements and implications for compliance. This guide will help you navigate these categories and ensure your property meets all necessary standards.

Hosted vs. Unhosted STRA: Key Differences and Requirements

What is Hosted STRA?

Hosted STRA refers to rental arrangements where the property owner (or host) resides on the premises during the guest’s stay. This setup often includes:

1. Host Presence:

   • The host may come and go but is generally available on-site to assist guests and oversee property management.

   • This arrangement can offer a more personalized experience for guests, often resulting in higher satisfaction and positive reviews.

2. Property Types:

   • Examples include bed and breakfasts or renting out a room in the host’s primary residence.

3. Regulatory Requirements:

   • Hosted properties must comply with all standard STRA regulations, including safety standards such as smoke alarms and electrical safety devices.

   • Hosts need to ensure that the living areas used for STRA meet local health and safety standards, which may include additional inspections and certifications.

What is Unhosted STRA?

Unhosted STRA refers to rental arrangements where the property owner does not reside on the premises during the guest’s stay. Key aspects include:

1. Absence of Host:

   • Guests have full access to the property without the presence of the host. This often provides more privacy and independence for guests.

   • Unhosted STRA is common in vacation rentals, entire home listings, and investment properties used solely for short-term rentals.

2. Property Types:

   • Examples include entire homes, apartments, or units listed on platforms like Airbnb or Vrbo.

3. Regulatory Requirements:

   • Unhosted properties must also comply with STRA regulations, but the absence of a host on-site necessitates stricter adherence to safety and compliance standards.

   • Additional requirements may include obtaining specific development approvals from local government areas and ensuring the property meets all safety regulations autonomously.

Compliance and Registration for Hosted and Unhosted STRA

1. Mandatory Registration:

   • Both hosted and unhosted STRA properties must be registered with the state government by January 1, 2025. This registration ensures transparency and compliance across the sector.

2. Safety and Health Standards:

   • Both types of properties need to adhere to stringent safety standards, including the installation and maintenance of smoke alarms, electrical safety devices, and, where applicable, pool barriers.

   • Regular inspections and updates to these safety features are mandatory to maintain compliance.

3. Development Approvals:

   • Unhosted properties, in particular, may require development approval from the local government. Property owners must check with their local authorities to understand the specific requirements applicable to their area.

Benefits and Considerations

1. Hosted STRA:

   • Benefits: Higher guest satisfaction due to personalized service, potentially higher rental rates, and easier management of property issues.

   • Considerations: The host must be available and involved in the guest experience, which may not suit all property owners.

2. Unhosted STRA:

   • Benefits: Greater privacy for guests, potentially higher occupancy rates, and the ability to manage multiple properties remotely.

   • Considerations: Stricter compliance requirements, higher risk of property damage without on-site supervision, and the need for robust property management systems.

Understanding the differences between hosted and unhosted STRA is crucial for property owners looking to comply with new regulations and optimize their rental strategies. Whether you choose to be a hands-on host or prefer a hands-off approach, ensuring your property meets all regulatory requirements will help you succeed in the evolving STRA market.