The new set of rental policies in Queensland that are set to come into effect by October could potentially trigger a ripple effect on property investors and the overall rental market.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said property managers are being briefed for the upcoming changes to the rental rules in the state, particularly the removal of the right for property owners to end a periodic tenancy by providing notice.
“When these laws were passed, we warned they could effectively spell the end of periodic tenancies in Queensland,” she said.
“Our best practice advice for property managers is to start talking to their clients now about the risk of a ‘never-ending tenancy’ if they do not transition periodic tenancies to fixed-term tenancies ahead of the new laws.”
Ms Mercorella said this could potentially result in many periodic leases becoming “extremely rare” in the state, making fixed tenancies more common.
The new rental laws will also loosen the laws on restricting pets — owners could only decline if they can establish prescribed grounds.
“We recognise that pets are often a beloved family member, but equally appreciate that not all property owners feel comfortable with the potential risk of pet damage to their property and its value,” Ms Mercorella said.
“Previously property owners could choose to simply say “no” to pets in their property, but with these new laws, property owners will have limited grounds to refuse a pet request.”
However, one advantage owners can take away from the new laws is the ability to impose certain conditions in relation to the approval of pets.
Rental owners will also be able to seek compensation for the damage caused by pets.
Still, Ms Mercorella said these new rules restricts rental property owners, potentially making Queensland a less appealing investment option for many.
“While some property investors may have made the decision to sell in anticipation of the new laws being introduced, it’s concerning to think what the aftermath could be once the laws are in operation,” she said.
Furthermore, Ms Mercorella said these “heavy-handed” reforms disrupt the balance of contractual rights between tenants and property owners, which could have consequences for the entire market.
“We can only hope the state government is paying close attention to the impacts of these new laws, before they launch into the controversial phase two of rental reforms flagged for this year,” she said.
“While we understand that there needs to be protections available for tenants, finding the right balance is important, because we do heavily rely on private investors when it comes to housing Queenslanders.”
To educate property managers and owners, REIQ will be holding a series of training sessions about the new tenancy laws across Queensland throughout the month.
Photo by @ivan-samkov on Pexels.
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