REIQ's Rental Reforms Campaign proves there is power in numbers

Just after Christmas 2019, the REIQ submitted its response to the Consultation Regulatory Statement (“RIS”) – Review of the Residential Tenancies Rooming Accommodation Act 2008 (Qld) (“RTRA Act”) regarding the proposed rental reforms, announced in November last year.

The submission was the culmination of weeks of dedicated advocacy work by the REIQ, that received an overwhelming level of support from the real estate and broader community, who collectively sent almost 8000 letters of opposition to Premier Annastacia Palaszczuk.

The response to our campaign has been unbelievable. We thank you for your support on this critically important issue.

 

It's time to protect people and property - The proposed rental reforms have the potential to destroy the Queensland property market.

The State Government’s proposed rental reforms have the potential to destroy Queensland’s rental market and create the most onerous rental laws in the country.

With more than 34 per cent of Queensland households in the rental market, our state has one of the highest proportions of renters in Australia. To destabilise this market, would detrimentally impact both property owners and tenants.

Now is the time to stand together. It’s time to protect people, and property.

 

Download our template letter and email it to the Premier, expressing your concerns with the State Government’s proposed rental reforms.


Please note, this campaign has closed.

 

Download template

What do these reforms mean for tenants?

More than half of Queensland’s local government areas are experiencing tight rental conditions, meaning it’s already difficult for renters to find suitable accommodation. The proposed reforms have the potential to deter investors from entering the rental market, and may prompt current property owners to sell their properties. This abrupt market disruption would see rental vacancy rates tighten even further, resulting in fewer available homes for potential tenants, who would struggle to secure suitable homes for themselves and their families.
By Minister de Brenni’s own admission, the proposed reforms would result in an increase in rent of up to $18 per week, due to the impact on housing supply and additional cost burdens to property owners. For the average Queensland tenant, renting a three bedroom home for an average weekly rent of $360, this rise equates to a massive five per cent increase. Of course we know that these types of estimates are often conservative, so it’s likely that the rent increase for tenants would be even higher. Higher rent also means higher bonds. The end result? Reduced affordable housing for renters, impacting Queensland’s most vulnerable.

Read the report by property market analysts Propertyology on why it’s believed rents may increase by as much as $5000 per year under this proposed legislation.
Reduced housing supply due to fewer investors entering the market, as well as current property owners withdrawing their properties, securing a suitable home will be more difficult. This challenge will be further compounded by tougher screening requirements and possible discrimination against prospective tenants.

What's the solution?

The REIQ agrees that a review of rental laws is long overdue and now is the time to modernise the laws as they stand.

However it is essential that future reforms lead to safety and stability for all market participants. The residential property market is critical to the Queensland economy and having a steady supply of investors is key to ensuring rental and housing affordability is maintained.

For that to happen, the State Government must provide certainty and fairness to the market. The REIQ calls for rental reforms that reflect its view that a healthy growing real estate sector should benefit everyone involved – tenants, investors and real estate professionals alike. Queensland has one of the highest proportion of renters in Australia, with more than 34 per cent, and that number is predicted to rise in the future.

As such, we must have fair and balanced laws that recognise the rights and obligations of both parties in the rental relationship.

The REIQ Believes

  • Tenants are entitled to safe and secure homes, extending to the right to request repairs, maintenance and upgrades to ensure that safety and security requirements are met and respected by landlords.
  • Property owners must have the right to expect tenants to pay rent on time, and to care and maintain their property throughout the tenancy. They must also retain the right to make decisions and maintain control of the properties they’ve worked hard to acquire.
  • Property professionals require clarity. Laws must be easily understood so that property managers can properly and effectively manage the relationship between the parties.

The solution is rental reforms that protect both people and property. 

What do these reforms mean for property owners?

The most damaging reform proposed is the abolishment of a landlord’s right to not renew a tenancy agreement at the end of its agreed term. In practical terms, tenants will have the right to rent a property for life, unless the property owner can establish a reason prescribed by law. The reforms would essentially result in the overall erosion of rights for landlords, who would lose decision making powers and control of their property. Property owners would no longer be able to say no pets, unless they could establish reasonable grounds. This would be difficult, and require a QCAT order.  Tenants would also be able to make modifications and changes to the property without the owner’s consent. Further, property owners would be compelled to consent to amenity-related and personalised modifications requested by the tenant, unless they can establish reasonable grounds.

As a result of reforms introducing broad ranging minimum housing standards, property owners may incur significant costs due to potentially large scale repairs and upgrades required to adhere to the new laws.

Other costs may include:

  • having to attend QCAT more regularly to obtain orders to exercise basic rights

  • damage related to poor quality and/or faulty modifications, and pet related damage

  • insurance premiums and excess costs due to higher risk and increased claims.

As a result of proposed controlled ‘for life’ tenancies, property owners may be forced to withdraw their properties from the residential tenancy market due to an inability to remove a unreliable and/or unfavourable tenant. Onerous landlord related requirements and loss of control over their asset may contribute to the same outcome. This is a devastating and costly blow to investors, the majority of whom are hard-working mums and dads.

What's the solution?

The REIQ agrees that a review of rental laws is long overdue and now is the time to modernise the laws as they stand. However it is essential that future reforms lead to safety and stability for all market participants. The residential property market is critical to the Queensland economy and having a steady supply of investors is key to ensuring rental and housing affordability is maintained.

For that to happen, the State Government must provide certainty and fairness to the market. The REIQ calls for rental reforms that reflect its view that a healthy growing real estate sector should benefit everyone involved – tenants, investors and real estate professionals alike. Queensland has one of the highest proportion of renters in Australia, with more than 34 per cent, and that number is predicted to rise in the future.As such, we must have fair and balanced laws that recognise the rights and obligations of both parties in the rental relationship.

The REIQ Believes

  • Tenants are entitled to safe and secure homes, extending to the right to request repairs, maintenance and upgrades to ensure that safety and security requirements are met and respected by landlords.
  • Property owners must have the right to expect tenants to pay rent on time, and to care and maintain their property throughout the tenancy. They must also retain the right to make decisions and maintain control of the properties they’ve worked hard to acquire.
  • Property professionals require clarity. Laws must be easily understood so that property managers can properly and effectively manage the relationship between the parties.

The solution is rental reforms that protect both people and property. 

The proposed new laws would increase liability and general risk for property professionals due to tenants having the power to dictate terms such as:

  • pets
  • repairs and maintenance, and
  • making modifications to property without landlord consent.

The reforms would also increase health and safety risks to property managers due to pet-related issues and poor quality and/or faulty property modifications made by tenants.

Due to the overwhelming erosion of landlord rights, in particular the disabling of property owners to end a tenancy even after the agreed term ends – property managers would need to apply more intensive screening of prospective tenants.

Should a landlord wish to end a tenancy, or choose not to consent to pets or property modifications, property managers would need to prepare evidence and substantiate grounds.

They may also need to attend QCAT more regularly to obtain orders due to loss of landlord rights.
The proposed reforms have the potential to lead to a loss of business for property managers due to investors withdrawing properties from the residential tenancy market, due to lack of control over their asset.

Salaries may also increase due to more onerous business processes and compliance requirements.

As a result of the increased risk and loss of control over the property, insurance costs would also rise.

What do these reforms mean for real estate professionals?

What's the solution?

The REIQ agrees that a review of rental laws is long overdue and now is the time to modernise the laws as they stand. However it is essential that future reforms lead to safety and stability for all market participants. The residential property market is critical to the Queensland economy and having a steady supply of investors is key to ensuring rental and housing affordability is maintained. For that to happen, the State Government must provide certainty and fairness to the market. The REIQ calls for rental reforms that reflect its view that a healthy growing real estate sector should benefit everyone involved – tenants, investors and real estate professionals alike. Queensland has one of the highest proportion of renters in Australia, with more than 34 per cent, and that number is predicted to rise in the future. As such, we must have fair and balanced laws that recognise the rights and obligations of both parties in the rental relationship.

The REIQ believes 

Tenants are entitled to safe and secure homes, extending to the right to request repairs, maintenance and upgrades to ensure that safety and security requirements are met and respected by landlords.

  • Property owners must have the right to expect tenants to pay rent on time, and to care and maintain their property throughout the tenancy. They must also retain the right to make decisions and maintain control of the properties they’ve worked hard to acquire.
  • Property professionals require clarity. Laws must be easily understood so that property managers can properly and effectively manage the relationship between the parties.

The solution is rental reforms that protect both people and property. 

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