The Real Estate Institute of Queensland, (REIQ) are campaigning against the Government to reconsider their proposed stage 2 rental reforms, with support from Queensland Investors.
The REIQ, Queensland's peak body in Real Estate called on Queensland Investors and Property Managers to have their say on the proposed reforms. Over 3,300 investors participated and of that, 81.4% of investors said would sell up if the reforms went ahead, placing pressure on the already strained rental crisis.
To put that number into perspective, if all of those 81.4% of the 3300 landlords who responded follow through on selling their investment, Queensland could lose nearly 2700 rental properties from the market.
The proposed reforms include making it easier for renters to install safety, security and accessibility modifications and make minor personalisation changes, balancing the privacy of tenants with owners entry rights and changes to what fees and charges can be passed onto a tenant.
REIQ CEO Antonia Mercorella said they had received an overwhelming and passionate response from Queensland rental providers, who may walk away from property investment due to yet another round of rental law reformed.
"The REIQ is concerned with ongoing and consistent rental law reforms which are progressively eroding property investor rights along with their confidence," Ms Mercorella said.
"Further withdrawal of properties from the rental pool amid the critical rental crisis in Queensland will have dire consequences on the market in both the short and long term.
This wholesale reform of the rental market is in direct contradiction with what all stakeholders seem to be in furious agreement about - the need to boost rental supply."
The REIQ's survey showed the following:
- 81.4% of rental providers said recent and future proposed tenancy law changes have influenced the likelihood that they will sell up.
- 62% of respondents said they’ve considered selling their rental property in the past two years.
- 27% said the primary reason for considering selling was on account of rental law reforms – the number one standalone factor.
- 98.6% of rental providers were vehemently opposed to tenants making any property modifications without their consent.
- 64.5% were opposed to minor personalisation changes to rental properties without the owner’s consent and were apprehensive about the lack of definition of ‘minor’.
- 79.8% of the survey respondents did not consider painting walls of the rental property to be minor in nature.
- 75.6% said that the current rent they charge does not cover all their outgoings to hold the property.
Source: REIQ, LinkedIn
The REIQ hope that with as many voices as possible, they can advocate for more fair and balanced law reforms that will benefit both tenants and property investors in Queensland.
A flow on effect from mass investor withdrawal and sale would also effect the stability in the sales market. Typically, when there is a flood of properties hitting the market at once, the price of properties come down.
At Place, our team are committed to keeping our landlords informed and up-to-date with all legislative changes. We work closely with the REIQ to always follow best practice. You too can keep up-to-date by subscribing to our blog below.
Got questions about your investment property? Our property management team are here to help!