Rent Reforms Could Cost $5K a Year
Proposed changes to Queensland’s tenancy laws could cost renters more than $5000 a year and slash thousands of jobs, new research reveals.
The Palaszszcuk government’s controversial rental reforms could result in rents spiking by $100 a week over the next two years as investors desert the market, according to property research firm Propertyology.
Propertyology head of research Simon Pressley said the reduction in investor demand would cause an undersupply of rental properties and negatively impact employment in industries that relied on property transactions, such as construction.
“The changes will mean that, even though they aren’t the owner of the asset, tenants will have the dominant hand when it comes to what they may do to a property and how long they live there for,” Mr Pressley said.
“It’s a fundamental right, an unquestionable expectation, that the property owner — as with any asset that anyone owns — determines the ‘who, what and how’ they control their asset.
“While tenants might currently think this new legislation is a dream come true, the probability is they will be faced with extreme household budget pressure sooner rather than later.”
Propertyology predicts the proposed rental reforms would result in a $100 per week rent increase in Cairns, Townsville and Mackay over the next two years.
Mr Pressley said the average rent for a three-bedroom house in Mackay had already risen by $3000 over the past 12 months, $1400 in Cairns, $830 in Townville and $728 in Bundaberg.
“If you think these numbers seem extraordinary, they’re nothing compared to how rents will soar if this absurd legislation comes into effect,” he said.
Mr Pressley said it was also likely rents would increase by $50 a week in places like Bundaberg, Toowoomba, Hervey Bay and the Sunshine Coast over the next two years.
“That’s $2500 per year that tenants in these regional Queensland cities will have to find,” he said.
Real Estate Institute of Queensland CEO Antonia Mercorella also strongly opposes the reforms.
Ms Mercorella said the most damaging change was the proposed abolishment of a landlord’s right to not renew a tenancy agreement at the end of its agreed term.
She said that would allow a tenant to remain in a tenancy indefinitely and for as long as they wanted unless the landlord could establish a reason prescribed by law.
“This reform has been cleverly disguised by the Palaszczuk Government as the abolishment of ‘without grounds terminations or evictions’,” Ms Mercorella said.
“That description is inaccurate and misleading.”
But Tenants Queensland CEO Penny Carr said the reforms would provide positive changes for tenants seeking protection against unfair and retaliatory evictions, improve minimum housing standards, support those experiencing domestic violence and renters wishing to keep pets.
Go to www.qld.gov.au/rentinginqld to have your say on the proposed reforms.
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The above information has been sourced from Realestate.com.au. To read the full article CLICK HERE.