What do these reforms mean for Tenants?

How does it impact me?

Lack of suitable housing

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.

Rent increases

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. 

Difficulty securing a home

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.