The Hobart City Council is proposing to double the rates of short-stay properties in residential areas.
Owners who rent out or live in their homes will pay half of what owners of short-stay accommodations will pay if the new rating system is implemented in a move aimed at addressing the housing crisis.
The rates would depend on a property’s assessed annual value and need approval from elected members when they vote on the council’s long-term financial plan on Monday.
The Tenants Union supports the increase, hoping it will encourage more long-term rentals, while the Residential Rental Property Owners Association president Louise Elliot, who is also a city councillor, calls it a ‘cash grab’ and urges the council to address the crisis proactively.
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- Rates will be determined by a property’s assessed annual value (AAV) based on estimated rental income.
- For a property generating $620/week ($32,240/year), rates would be $1,679.70 for standard residence and $3,359.40 for short-stay accommodation.
