New reforms boosting renters’ rights have come into effect, but a local property manager said affordability and supply were yet to see “any meaningful improvement”.
Local rental expert Janet Benson from Capstone Property Solutions said changes to rent bidding, rent increases, and fixed price laws were among significant reforms.
“These laws are aimed at making the application process fairer for all and aimed at easing the financial burden on tenants,” Ms Benson said.
Rent bidding, or accepting rent offers higher than the advertised price, are now banned.
Ms Benson said this aimed to make the application process “much fairer” and ensured applicants were not gazumped by those willing to pay more.
She said property managers and owners could no longer solicit, accept or invite a tenant to pay rent that exceeds two weeks for certain tenancy and accommodation agreements.
“Even if a prospective tenant makes an offer to pay more than the amount prescribed in the legislation,” she said.
“Rent increases are limited to 12 months and are attached to the property instead of the tenancy.
“This will ensure that owners of rental properties do not terminate a tenancy at the end of six-months to increase the rent.”
These changes follow initial reforms that came into effect in September last year.
They include the introduction of minimum housing standards, rules about pets in rental accommodation, increased rights to end of tenancy for victims of domestic and family violence, and the introduction of repair orders.
“These have been probably the most significant changes to tenancy law seen in Queensland and are consistent with the direction most states are taking,” Ms Benson said.
“While they should improve the quality of housing, make the application process fairer and ease the financial burden for some tenants, the major challenge is housing supply.
“I do not believe that we will not see any meaningful improvement in housing affordability for tenants until we can increase the supply of housing and provide a greater variety of housing types.”
She said further law reforms would be introduced “later”, including limiting the costs for tenants when they need to break their lease, providing them with a fee-free option to pay their rent, and changes to the notice period when entering a home and to the bond claim process.
“It should be noted that property owners play a significant role in the housing system, and they are also under increased pressure due to numerous interest rate rises, the increased cost of rates, insurance and compliance,” Ms Benson said.
“Many agents are seeing an increase in the number of rental properties being sold due to both the financial pressures on landlords and the increased value of properties.
“The new changes have also created some challenges for property agencies and landlords who self-manage their properties.
“Agencies have been required to implement changes in policies, processes and systems within short time frames and increased training is needed for property managers to ensure compliance.”
