PROPOSED RENTAL REFORMS QLD

 

 

Clearly a hot topic at present and one that is confusing many, the rental reforms at this stage are PROPOSED only and we urge you to have your say by December 28th by CLICKING HERE and raising your concerns about the changes.

The Palaszczuk driven reforms according to the Premier are because the “Government wants Queensland to have contemporary residential tenancy laws that protect tenants and property owners alike and improve stability in the rental market”

Whilst we support regular overviews of the legislation and its currency, at Code, we are of the firm opinion that some of the proposed reforms could significantly impact the investor market and we agree with the REIQ’s statements regarding the inevitable rental increases and a shortfall of rental properties if these changes go ahead. 

So what exactly are the controversial changes in simple terms?

 

Number 1 and the one of greatest concern – “Ending tenancies fairly”

The proposed reforms, as they stand, would abolish a landlord’s right to not renew a tenancy agreement at the end of its agreed term, enabling a tenant to remain in a tenancy indefinitely unless the landlord can establish a reason prescribed by law to end a tenancy. How will this impact? For example, a landlord may choose not to renew a tenancy for the purpose of renovating the property for sale. Under the reforms the tenant will be permitted to stay until the property is actually sold. Often landlords don’t renew tenancies so they can place a family member in the home, again under the reforms, this will be restricted to “immediate family” wiping out dear old Aunt Mary’s right to move in.

 

Number 2 “the introduction of a tenants right to make modifications to a rental property without the landlord’s consent

Again, in theory we currently have legislation in place that enables tenants to make minor alterations to a property with a landlords consent. This reform means if a tenant wanted to paint a wall or install a fixed towel rail, they can give 7 days’ notice and commence the works unless their landlord gives reasonable grounds to refuse. And if a landlord missed this deadline by chance, then it would be deemed they have agreed.  How will this impact? Landlords may find themselves inheriting a modified property on vacate of tenancy that has the ability to negatively alter the value.

 

 

Number 3 “Minimum Housing Standards”

We fully support a legislated standard of housing for rental properties. However, these proposed reforms will require some landlords to alter properties that have been successfully rented for years to standardise the offering. This reform has been created to protect people in low income housing however, we believe the effect will simply be an increase in rental prices, creating further hardship for this sector of the market.

 

Number 4 “Pets and rentals”

This proposed change implements the loss of a landlords right to refuse pets. Essentially if a landlord has always kept their property free from pets, they will no longer be able to refuse the move in of fluffy Fido. Impact for a landlord? Potential costs to repatriate a property ready to relet if Fido has caused damage.

 

What do all these proposed changes mean? Well according to the REIQ, CEO Antonia Mercorella said the proposed reforms will see landlord rights diminished and the ripple effect will cause renters to be similarly affected.

“Under the reforms, landlords will see their fundamental rights eroded, making property investment far less appealing, and as a result, we’ll almost certainly see investment levels drop,” Ms Mercorella said.

Ms Mercorella said by the Minister for Housing and Public Works, Mick de Brenni’s own admission, the reforms would increase weekly rent from an average of $360 per week to $378, a 5% increase.

To learn more about the reforms and to have your say before December 28th, please CLICK HERE.