Proposed QLD Rental Reforms and What They Mean For Landlords
The Queensland Government is set to review some of the most drastic rental reform proposals the state has ever seen. The Minister for Housing and Public Works, Mick de Brenni, has introduced a rental reform proposal which will, overall, leave landlords with almost no control over their asset.
The reforms, which are due to be considered by the Palaszczuk Government soon, leave landlords with minimal rights over their investments. If passed, these reforms will drastically shift the power landlords have in the decisions of who can rent their property. The end result will be higher rents for tenants and fewer houses on the Queensland rental market.
Main points of reform:
- Proposed abolishment of a landlord’s right not to renew a lease once it reaches its end date. This effectively means that a tenant can potentially stay in a rental home for as long as they like – unless the landlord can find a reason by law that they should be refused renewal. This will cause landlords to be extremely selective of what type of investments they purchase, and what kind of tenant that investment will attract.
- A tenant’s right to alter or modify a rental property without the consent of the landlord. This could potentially be devastating for some landlords. A tenant could indeed improve the property by adding features or updating it, but this could also work the other way and have a negative effect on the property’s value. Faulty or unprofessional work could be done on the property, posing a safety risk to tenants themselves and property managers.
- A landlord will no longer be able to refuse pets. This proposed reform could see disruptive animals be placed in investment properties that landlords would otherwise prefer to be pet-free. It could also increase the costs of cleaning and repairs on a property.
What this means:
In summation, these proposed rental reforms will take away the basic rights of landlords who want to protect and have control of their investment properties. This will lead to a decrease in the amount of Australians investing in the Queensland property market, and in turn, will increase rental prices. With the current market already tight, this will only have a negative impact on landlords, and those wanting to enter into or return to the rental market.
What can you do?
The REIQ has more detailed information on the proposed reforms. For everyone involved in the property industry, there is a chance to speak your mind about what these reforms will mean for you. Speak up before it’s too late for the Queensland investment property market!